Barry Honig recently purchased around 110,000 shares of Chromadex at $0.63. This is approximately the same rate at which he invested in the company in November / December last year. The stock has rebounded from the recent lows of $0.61 and it seems that this can be a near term bottom for the stock. With sale of BluScience in a $6 million deal and launch of PURENERGY containing the same ingredient pterostilbene, it seems that the insiders are interested in increasing stake. Yesterday's rise was accompanied with tremendous volumes (4 times the 10 day average), and it is possible that the momentum is here to stay. News about insider acquisition has obviously helped matters. When investors like Barry increase stake, it signals some development on the fundamental front. The revenue impact of the BluScience deal will be more clear over the next few quarters, and it is expected that royalties and revenues from sale of the ingredient will add to the cash flow and the bottom line. Of course, success of PURENERGY can add to the growth. The product is a combination of ChromaDex's patented pterostilbene with caffeine. This co-crystal combination is also patented by the company. The combination improves the half life of caffeine by 6-8 times helping achieve same benefits of energy levels with significantly lower doses. High caffeine products are being questioned by regulators for their potential harmful effects. PURENERGY can provide an alternative to those drinks and, in addition, the product helps improve cognitive function and has antioxidant activity. It also has positive effects on the heart and helps support weight management. The market performance of the product will be more evident in the coming quarters. However, if Barry Honig increases stake, the possibility of other positive news cannot be ruled out. Insiders usually buy the stock when they are confident about the prospects.
looks like he is taking a page out of Frost's playbook.
Apr 28, 2013 HONIG BARRY CDirector 47,600 Indirect Purchase at $0.63 per share.
Apr 25, 2013 HONIG BARRY CDirector 47,900 Indirect Purchase at $0.63 per share.
Apr 24, 2013 HONIG BARRY CDirector 15,400 Indirect Purchase at $0.62 per share.