Stellar Biotechnologies – The real deal or just more tulip bulbs?

WP Greet Box icon
Welcome! If you are new to Stock Gumshoe, grab a free membership here and join us to get our free newsletter alerts with new teaser answers and debunkings. Thanks!
Not new? Please log in at top right of this page

DISCLAIMER: I am long shares of SBOTF and may add to the position at any time.
”Even blind squirrels find an acorn every now and then”
OK, I know .. there is already plenty of discussion re Stellar Biotechnologies (SBOTF) on the site. Since Travis posted the tease from Nick Hodge in early July, the stock is up a hair over 100% (my Special Situation account sends many thanks for that one!). The reason I’m opening this thread is because the majority of comments from those of us interested or already invested in SBOTF are being posted under another wonderful – yet mostly unrelated – thread by Doc Gumshoe that talks about Alzheimers and possible causes/treatments/cures. Great stuff, but not fully germane to the topic of SBOTF. So, tho seperate the two discussions, I thought I’d try this so we can focus on each of the topics independantly.
That said, here’s some commentary about SBOTF that I have gleaned from the original tease, tracking the price action since July, reading member comments on this site, and studying anything and everything I can find about the Company and it’s product, Giant Keyhole Limpet Hemogobulin, a/k/a KLH.
First, a little peeve I’ve developed; the actual name of this animal that is the central focus of the business. I’ve noticed a trend of sorts by readers to refer to the Limpet as a ”snail”, ”escargot”, or something along those lines. While some may be using this as a light-hearted way of referring to the animal, it is not any of those. Please, use the proper name – as silly as it might sound. New readers could easily dismiss the entire idea and be misled otherwise. No disrespect meant to any who have done this, but I think it’s important we stay on track.
Now, some factoids for you.
If you haven’t done your due dilligence yet, the place to start is right here on this page. In the upper right you’ll see a box that says ”Teaser Tracking.” Click on that. The page that comes up is a list of the teases which Travis has posted over the past many months. Second from the top is the one re SBOTF. Some good tidbits of info right there. But what you want to do is look all the way over to the right and click on the link to the original tease posting. Open that and you’ll get the full story that Travis wrote when he first uncovered this tease (produced by Nick Hodge) and is a solid foundation of info about the company. Read it – two or three times to get an understanding of what SBOTF is all about.
Next, if you can find it, try and get a post that has the original video that Hodge did to tease the company with. In it, he (Hodge) interviews a couple of the company’s top executives and takes the cameras outside the room totalk with another employee about the ”farming” process that SBOTF has spent years and millions developing and patenting. You’ll get a pretty good visual inspection of the plant itself, the ”grow tanks”, and the Limpet. Good stuff. By the end you’ll have a fair overview of the company and what it does. FYI, the video tease runs about 40 minutes. It’s the first 25 minutes or so that will interest you. The remainder is what all teases consist of, overblown and repetitive pleas to get you to subscribe to the newsletter service that the promoter has to offer. Save yourself time and money by skipping that stuff.
A few takeaways from the video and additional research:
SBOTF has been around since the late 1990’s, working on how to extract the blood from the Limpet without killing them (they have done that and gotten patents on the process) and how to raise them in captivity in order to ensure a continuious supply of the animals to work with. This ”farming” process has, for the most part, been perfected and SBOTF can now raise them from fertilization of sperm and egg to maturity. They have a lifespan of some 30 years, and coupled with the patent-protected process they developed for extracting the blood without killing the Limpet, the company can now say with assurance that they can provide the Big Pharma with all the KLH they need to conduct clinical trials and produce the drugs they develop once FDA approval is granted. And – this is a big ”and” – they are the ONLY company in existence that can do this at the present time. The many patents they hold may ensure that to be the case for years to come.
Did I mention that KLH cannot be synthesized? So far nobody has been able to do that, so the supply of KLH from SBOTF seems to remain the only game in town.
Stellar Bio has yet to turn a profit. Sales and not much to write home about. That is mainly due to the small supply available and that SBOTF has focused on R&D in the past moreso than actual KLH production. That’s my best guess – I can’t verify that but seems to be the case. It is changing, however. The R&D is still in full swing, but the ability to produce and sell KLH is starting to ramp up as witnessed by increasing sales volume. It’ll take time but those increasing sales are coming.
In the wild (ocean floor), the Giant Keyhole Limpet has never been found ANYWHERE in the world other than in the small colony (estimated to be about 100,000 animals) which is just offshore from the Stellar Bio plant in Ventura County, CA. The enviromental community has been getting more and more concerned about the harvesting of the Limpets from this colony since there apparently aren’t any more around. Whisper talk about possible extinction have begun to surface, although no official governmental action regarding a ”protected specise” has yet been issued. This is why the farming of the animals has been crucial and why Stellar has such a leg up on any possible competition. If the Tree Huggers get hold of that idea, the ability to harvest the colony could – and probably would – be severely impacted.
Recent price and volume action has been fast and furious. As more and more people are becoming aware of the company by means of Hodges’ tease and thing such as this discussion, volume has had days that were near three times the average six months ago (175K shares average vs. some days now running around 500K). And most of this is upside volume indicating increasing demand for shares of a small float. This of course leads to highr prices as we are witnessing as I write.
For now, the gravy train is tearing down the track. The question is, when will demand for shares be curtailed as investor thirst for a bite of Limpet pie become satisfied? When will Nick Hodge back off this promotion, letting the press subside and therefore lessening investor awareness (the stock is not covered by any analyst, anywhere, that I can find, nor is it held by any mutual fund or investment management company). If and when this interest backs off, what effect will that have on the stock price? Trees don’t grow to the sky … or do they?
I can’t answer those questions. Just like you, I can only hold ’um and not fold ’um – yet. That day may come, and that is why I suggest anyone long the stock keep a DAILY eye on it. I’m making no prediction whatsoever about where the price will go over the next several weeks or months. In the interest of full disclosure, I have already taken some money off the table just to partially protect the quick profits I made since purchase. I sold about 30% of my initial position when that part became valued around 50% of my original investment. What remains is valued today right at the same $ amount I first put in. The amouunt I pulled out gives me full protection of some 50% of my original investment. Would I be better off today if I hadn’t done that? Yes. I would, because the price continues to rise. Will I be better of for having made thaat sale if the price stumbles and falls in the near future? Again, yes, I will – if the price falls. Some wise man once said ”you can’t go broke if you take profits” and I believe in that. Me, I don’t care for the idea of going broke, so I’m perfectly happy with this concept. No regrets about putting actual money in the bank, so to speak.
Comments? Concerns? Insights? Let the fun began!
Sincerely,
Your Resident Blind Squirrel
Jim Skelton

Print this

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

Email This Email This

222 Responses to Stellar Biotechnologies – The real deal or just more tulip bulbs?


  1. Correction to my comment:
    In the original post I referred to KLH as “Keyhole Limpet Hemogobulin.” That is incorrect. The correct name of KLH is “Keyhole Limpet Hemocyanin.” Apologies for the error. I beg forgiveness because I was writing shortly after awakening this AM at 3:30 – a poor hour to began any form of journalistic endeavour. I also have noted a few typos, mainly due to inattention and lack of a spell check device. I’ll strive to do better going forward. And maybe not attempt writing at such an ungodly hour.
    Also note: It’s now 10:25 AM and SBOTF has not opened. No trades posted. This is unusual, even for quotes that are delayed by 15 minutes. Normally, by this time, some trades have been executed and the stock is up and running. Why the delay, I wonderf? Order imbalance? If so, in which direction? I sit here refreshing the quote screens every few minutes with great anticipation. Might we see a gap opening to the upside? Or has interest subsided, reality set in, and we’re about to see a rather large pullback on profit-taking? Ah, the world of high-risk speculation. Sure can keep a fellas heart pounding.

    Like(0)

    • Trading halt, requested by the company as of the market close yesterday. That means some kind of news is forthcoming, no idea what or when but it’s rare for it to take more than a few hours. If you’re interested in the company, you’ll find much more news following their home listing (KLH in Canada) than the US OTCQX listing (SBOTF). Announcement of trading halt from yesterday afternoon is here: http://web.tmxmoney.com/article.php?newsid=62175315&qm_symbol=KLH

      Like(0)

    • Hi Jim, love your posts! I’ve been in stellar since it began and its a pleasure to read some intelligent analysis without an attitude. Since you were an analyst, i’d love for you to check out a company thats just starting to get some traction, that also has ‘game changing’ medical technology, and is still very cheap. I’m in it pretty heavily and would appreciate your analysis of it if you have some time, it might also put a new investment on your horizon. The company is Aethlon Medical (aemd). They’re making a device called the hemopurifier, that they can fine tune to remove various items from the blood, such as exosome’s, viruses such as HIV and Hep C. They’re getting money from Darpa for Sepsis, patents in Europe to remove viruses from the blood. Seem to be working with Battelle in the Sepsis battle.
      Their website is:
      http://www.aethlonmedical.com/
      Any comments greatly appreciated.
      Thanks
      Robert

      Like(0)

  2. HOLD THE PRESSES!!!!!
    News … IIROC Trading halt on SBOTF put in place at 4:14 PM yesterday. Cannot find story or explanation. More when available. Hold on to your seats, folks .. this could be good .. or tragic.

    Like(0)

  3. UPDATE: Trading halt put into effect on request of company: pending news announcement. No bid, no ask currently posted. OK, one concern settled, that this halt not coming at request of some regulatory agency. That would only mean bad news. Now, is the announcement going to be good news or not so much? Cliffhanger time. Got your body armour on? I had plans to go out for awhile this morning. Plans cxld! Sitting here waiting .. and hoping .. and anticipating … What’ the saying? “Expect the worst, hope for the best, you usually get somethinng in between.” Stay tuned …

    Like(0)

  4. Sorry, Travis .. didn’t see your post here before adding to my own comment about the halt. Thanks for the link to the Canadian exchange – good to know and follow. I ought have known you were on top of this. Thanks again ..

    Like(0)

  5. It’s 11:25 AM. Still waiting on news release that I figure will be pretty big one way or another. A company does not request a halt in trading otherwise. But I have one final thought to share, a personal story you may find interesting.
    In 1973 my then-wife and I were visiting her Dad at Quantico Marine Corps base in VA. He was posted there as Chief of Chaplains for the Marines. One evening we went out to dinner to a Chinese Restaurant and, when the meal was finished, I cracked open my fortune cookie to read the prophecy paper. It said “A man is never happier than when in red-hot pursuit of a dollar with a reasonable chance of overtaking it.”
    I put that in my wallet and carried it for years. One day after I began work with Merrill Lynch I took it out and thumbtacked it to my corkboard. It remained there for maybe another 15 years, and I read it daily. It got burned into my brain. And now, 40 years later, the truth of it sounds yet again in my noggin. Those of us in SBOTF are indeed in “red-hot pursuit” at the moment and seem to have a “reasonable chance” of overtaking it. And yes, I’m happy. Whether or not I should be is TBD soon.
    Now, I’m going to fade out of this and just wait, silently. If I can only keep my fingers off this dang keyboard ..

    Like(0)

  6. Jim–from Wikipedia: Fissurellidae, common name the keyhole limpets and slit limpets, is a taxonomic family of limpet-like sea snails, marine gastropod molluscs in the clade Vetigastropoda.[1][2].
    Apparently keyhole limpets aren’t true limpits but are indeed “limpet-like sea snails.”
    Go escargot go!

    Of course, no matter what type of mollusk we have, the most important factors for an investor are the value of the material harvested to the biomedical community, the patents the company develops regarding their processes, the scarcity of the keyhole limpet and its sustainability.

    Like you, I’ve done a lot of reading–mainly focused on the factors I just mentioned. I agree that this product has tremendous upside potential and the company seems to be well run and managed. KLH appears to have great potential for vaccines and other medical uses to treat diverse medical issues. I don’t think it’s snake oil, but it is a rather risky bet at this point given no true revenues. Let’s hope that you and I are true blind pigs who will not get barbecued soon in the market.

    Like(0)

  7. I have not lost any sleep over my keyhole pet investment, and do not feel compelled to sit by the computer all day. Last week when some of my other positions were down a little, Stellar was showing a profit, remember I bought @ .63 and as of today I am up 128.80, I have not taken any profit and still plan on holding. I spent hours researching the company , and the science behind KLH and bought prior to the name change. I get direct updates from Stellar, as I signed up for them.
    I NEVER invest money I cannot stand to loose.
    Regards
    Deborah

    Like(0)

  8. I’m long on this one. My wife is a Biochem PHD student at UMC MS working on drug transport systems. It sounds like this company may be right up her alley of study and interest. I hope she will have that interview with these folks. I’ve done my reading on SBOTF like the rest of you and like what I see. The halt is disconcerting, especially if a buyout is pending, hopefully not. Along with the rest of you I’ve got one eye stuck to news feed and ticker and the other doing my regular work.
    Other: LQMT, PLUG, OESX, F, Dell

    Like(0)

    • First, I’m not sure if a reply to a month old post will show up or not. Second , woo hoo we’re at $2!! And it hit this level BEFORE the Fed. announced its news. Third , this may be breaking protocol (and if so I’m sure I’ll hear about it)
      Roger, can you direct me to a discussion page on PLUG? My curiosity has been piqued. Also, hope you don’t think I’m full of myself- really would like to make an investor visit at some point.

      Like(0)

      • I would not think that your ‘ping’ to me is off protocol as long as the discussion of other stock does not overtake this thread. I would hope that the folks here do mention other stocks that they find ‘viable’. Find PLUG POWER on Seeking Alpha.
        No, not full of yourself – just excited like the rest of us. If interest is shown for several to visit all the better (and more likely that we will get the tour rather than just one person). I will wait for all to go at once if the interest is shown. I think it would show a great deal of support to the board and to those other (institutional) investors that are waiting in the wings ready to pounce and hopefully push our stock value through the roof. NASDAQ, Splits – oh how my heart is a flutter :-)

        Like(0)

  9. 2:00 PM – the wait continues.
    While doing so, a note to David and Deborah:
    David, thanks for setting me straight on the difference between Limpets and snails – or perhaps that there is no difference. What I was concerned about was that a few folks – many on other forums like Seeking Alpha – wee starting to play fast and loose with the description of the primary player here. And some others were getting the wrong idea about what we’re actually dealing with. That can be harmful in gaining an understanding of what is going on. To get things on track I popped off as I did – and appreciate you being dilligent enough to continue that thought to a solid conclusion.
    Now, Deborah – hello again! I’m glad you haven’t lost sleep here and don’t invest money you can’t afford to lose. Smart lady, you are. But if you or anyone else may be wondering why I seem so obsessed about all this, the explanation is in the way I choose to invest in opportunities such as I believe is presented by Stellar Biotech. And before I tell you, let me say this with sincerity. I DO NOT recommend ANYONE else go this route.
    Over my 30-some years of investing my own money and advising others about thiers I had exactly three occasions to do what I’ve done with SBOTF. And this is the third of the three. The other two were (1) Telephonos de Mexico in 1986 when it was a total disaster and trading as an ADR for 0.125 per share. I examined it as well as I could (no followers, no analysis, no reliable data coming from the Mexican government that owned and operated it at the time) and shared my common-sense thoughts about what COULD happen with three clients. Two of them bought it, one putting in $100,000 USD, the other $10,000. I put in as much as I could a week after them. We waited almost exactly 8 months. Most of what I felt could happen did happen, and we all sold about the same time for $0.84 – $0.88 per share. A seven bagger in 8 months. That’s some serious money.
    I actually didn’t have to wait long before #2 came around. But it was vastly different in all ways. Although a new company with a novel idea, it was owned and run by a businessman that had relocated his operations to Ft. Lauderdale a few years prior. Since my office with Merrill was less that 1/2 mile from the little building he had acquired on Las Olas Blvd., I passed by his front door two or three times a week on the way to lunch at one of the cafes on that hoi-poi shopping street. The man is Wayne Hizengua (sp), founder of Waste Management, and the guy who was bringing his new company to market in an IPO soon – Blockbuster Video.
    This time I went gangbusters with clients to try and get them to put some money into this business. Many did, although we couldn’t get shares on the offering – way too much oversubscription. And I was shut out from buying in that manner regardless due to SEC restrictions. So we had to let the stock open and then buy – and paid a couple dollars more than the initial price. This was summer of 1987.
    I – and most clients – just held as the company prospered in consolidating what was then a scattered, unorganized collection of thousands of Mom-and-Pop video rental business all over America. That was the vision – consolidate a fragmented business, organize it, streamline it, price it reasonably, give all locations an inventory to match demand, clean it up, and let what happen, happen. It workd. Man ‘O man, did it work!
    On Sept. 29, 1994, the annual stockholders meeting was held in Ft. Lauderdale which I attended with six clients in tow. Wayne announced that Blockbuster was merging into Sumner Redstones entertainment empire, Viacom. Stakeholders in BV would be getting shares of VIA at a substantial premium. Overall, since the IPO, investors like us that had stayed the course from soup to nuts reaped a total return slightly above 4,000%. That’s not a typo – it was a 4,000% gain in some 7 years. I took the clients (all ladies in their 60′s and 70′s by the way) to lunch after the meeting close by the old Blockbuster HQ. What a wonderful day! A few days later, after examining Viacom, I decided it was time to exit stage left and recommended all to sell their BV holdings at market price before the conversion. The main reason was that we had bought BV for a specific reason, and now that it was being folded into the other businesses of Viacom, much of the impact it’s earnings and growth might contribute to the overall results of Viacom would be diluted. We no longer had the same company at all. Most sold and we moved on.
    Since that time I have not found any company that called out to me in the same way those two did. Oh sure, there have been plenty that performed like this, but I missed them. Then that tease which Travis covered so well from Nick Hodge showed up just a few weeks after I became a Gumshoe participant, those same faint bells and whistles started resounding in my head, and after examination and consideration, I was hooked. And I acted, although two weeks and $.025 later than when the first thoughts of doing so occured to me. I could have bought at $0.67 – but I hesitated and got in at $0.92. No matter – things have worked out quite nicely since anyway.
    All this brings me to the admission of how I go about investing in situations such as we have here. And I repeat, I don’t recommend it to anyone. It’s way off the mark of standard financial planning. It’s high risk. And it tempts with high return if successful. Here’s what I do, and what I have done with SBOTF.
    If I am convinced that a company has a critical product or service, is in an early stage of development, has a good chance to make things better in a relative hurry, isn’t yet widely known or covered by financial sources, and is trading at a price that enables me to buy a LOT of shares, I don’t mess around. I ask myself – is the amount I am thinking of putting in such that, if lost, would cause me to actually change my lifestyle? If so, I cut back. If not, I proceed. Yes, I’d hate to lose that sum – but I would still do all the things I currently do if it was gone. Then I ask myself this; if things go as I think they could, do I have enough in so that this just might change my life in a positive way? If not, I up the ante. If so, I pull the trigger.
    In the case of SBOTF, I put in nearly 25% of my entire investable assets. That’s right – 25% of everything I had. Any competent Financial Advisor would tell you I am off my rocker – they’d tell you to keep this sort of high risk speculation to a maximum of maybe 2% of total assets – and that may be too much. I know this – I was one of those critters, remember. And I never suggested a client do anything like I do. I have an understanding of myself that lets me take these sort of risks without a lot of worry.
    Why do I go so strong into such situations? Because I know that if you want to win big you must risk big. Would it do me any real good to take the risk and wind up with, say, a gain of $1000? That would be nice but would not change a single thing in my life. Except maybe then I’d go buy that 60″ flat screen I’ve been lusting for these past two months. But other than that all I’d have is a faint regret that I hadn’t acted on an idea that comes along only seldom when I had the chance to do so. I hate that feeling – the feeling you get when you realize you were finall truly right about something yet didn’t have the conviction to go for it in full.
    I view these special situations and act on them in exactly the same way I gamble, if and when I gamble in a casino (very, very seldom). I won’t sit at a roulette wheel for hours, making $2 dollar bets on a spin. Nope. I just wait until I’m passing a game in progress and, if i get a strange feeling and have a random number pop into my head at that instant, I’ll drop everything I intend to spend on that game straight up on that number and wait for the ball to drop. If it’s wrong, well, I just lost my stake that I set aside for that purpose. That was gonna happen anyway. But if it hits .. I’m taking home 32X my money. And believe it or not, I’ve had that happen 3 times in my life as well. It just occured to me when I wrote that – three times in the market, three times in the Casino. Maybe a number I want to remember.
    Anyway, as relates to my position in Stellar, I stand to make several tens of thousands of dollars if this becomes a 4 or 5 bagger. Or I’ll lose an amount I would have preferred to keep but won’t really have an effect on me as I go about my life. Seems a decent risk/reward trade off to me. But I am me, and you are you, and I once again say DON’T ASSUME THIS AS YOUR METHOD OF INVESTING.
    That’s why I’ve been at this computer all day. Still no news release, and since it is now 3:15 PM, I don’t expect one until after the close. Then we’ll know.
    Lordy mercy, I love this stuff :0)!
    The Blind Squirrel – Jim Skelton

    Like(0)

    • I have a feeling that a buy out is imminent. One of the big biotechs sees what the rest of us see. The good news is that we will make a nice profit. The bad news is that we wont have the fun of riding this wave for months/years to come.

      Like(0)

  10. Here is what I got back from Stellar on my email inquiry. Not much but at least something.
    “Dear Mr. Rose
    Thank you for your email and your interest in Stellar Biotechnologies. Stellar has placed a halt on trading of our stock (TSX:KLH, OTCQB: SBOTF) pending a news release. We will release the news as soon as possible however the timing of the news release is not yet known. Trading of the stock will resume again after the news has been released. Thank you again….”.

    Jim, nice recount on how you invest. I rode the wave during 2000 on day trading with the heart pounding by the minute each time I hit the ‘enter’ key. The best I did was with the folks that had the patent on thumb drive technology and the worst when Rite Aid tanked. We do learn our lessons. I do like the long shot startups and new technology stocks as I listed in a previous post. Usually I will have some knowledge of the industry or product process before investing. And like you, buy a bunch at sub dollar (not always but I try) and a lot to make it worth while if it goes in the correct direction. Also, I’m with you on ‘don’t do this unless you can afford it’, high risk can be high loss, but the thrill of high gain is the other heart pounder.
    Hopefully some news before the open tomorrow.

    Like(0)

    • Roger, oddly enough I’ve never tried my hand at true day trading. I suppose I ought have given it a go but just never did. As I said in my note, I’ve only had this strange sense of pending profit three times since 1986. I bought with abandon in all three cases. The first two worked out beautifully and that is what got me hooked on the idea. And now this – which I agree with several others here will turn out to be some sort of merger or major joint venture with one or another Pharma company. I’m torn as to whether or not I’ll be glad to see that. If it’s a takeover at a very signifigant premium I’ll appreciate the quick cash. But I’ll miss the excitement of owing a company growing like this with what I think is such great long-term potential. Have no candidates in mind with which to replace it. Remember – “Be careful what you wish for. You just might get it.”

      Like(0)

      • Jim, as I mentioned in a follow on post (which should have been a reply and not a new thread – apologies.) I’m hoping for, at the most, a partnership with an established Pharma. With a buyout, as you mentioned, would be ‘some’ quick cash but I like you like the joggers high, rather than the sprinters high. The buyout would, in all probability, be the IP and the rest of the folks fade away. (seen it, been there)
        I’m wishing for the partnership.

        Like(0)

    • Whatever the news it is very likely to be very good for the stockholders in the short term. Since the stock had come down a bit in the afternoon on 8/20, I added 25% to my holdings just 3 mts. before the market closed on Tuesday. That may have been my best gut instinct move ever!

      Like(0)

  11. ALERT:
    IIroc has removed the trading halt on SBOTF. No news story has yet been released by the company to explain the requested halt yesterday. No trades yet executed. Stay on watch – something is about to break out.
    The Blind Squirrel
    Jim Skelton

    Like(0)

    • The news was a private placement, priced WAY below current market price ($1.05 for a share AND a warrant), absent other developments or news I would suspect that will probably drive the shares down: http://finance.yahoo.com/news/stellar-biotechnologies-inc-announces-us-130500744.html — there are no earnings to dilute yet, but that’s significant ownership dilution. Of course, that price WAS the market price just ten days ago, since the stock rose a good 40-50% since early August, so it’s not unreasonable from that perspective.

      Like(0)

      • This, undoubtedly, was one of Mexican businessman and CPA Ernesto Echavarria’s buys; I’ve been reading up on him and his dozens of what are described only as “Buys or Dispositions” of shares of Stellar. Unfortunately, they don’t give clear information on whether each transaction is a Buy or a Sell. Elsewhere, I did read that he holds over 20% of the float. He is also an insider (i.e., holder of at least 10% of shares) of several other companies–he seems to have a sweet tooth for Canadian Juniors–and has a controlling interest in Frank’s fruits and vegetables in Mexico. Several of the companies in which he is an insider have earned the attention of the SEC. I ran into a blogsite entitled “Neer do well Hall of Infamey” Here’s a link:

        http://neer-do-well-hall-of-infamey.blogspot.com/p/clive-massey.html

        You’ll read, here also of many companies in which shareholders lost millions, such as:

        http://www.mineweb.com/mineweb/content/en/mineweb-junior-mining?oid=187170&sn=Detail

        Rye Patch Gold (RPMGF), Redhill Resources (ATWGF), Animas Resources (Sold to GoGo Gold, Copper Fox Metals. And there’s Solotro, Blackheath Resources. The list goes on and on, and the same people keep showing up.

        Is Mr. Echvarria complicit in these deals? I’m not aware that he’s been charged, but I find it very suspicious that he seems to be an insider in a lot of these companies, where shareholders lost their shirts.

        And I have to say that the massive selloff in Stellar, since early April smells of burnt investors.

        Like(0)

  12. WELL, THIS IS THE CHANCE YOU TAKE WHEN INVOLVED IN ISSUES OF THIS TYPE. LAST TRADE AT $1.12. a LOT OF DISAPPOINTED FOLKS OUT THERE RIGHT NOW – ME INCLUDED.
    jUST REMEMBER THAT THIS REDUCTION IS DUE TO THE DILUTIVE EFFECT THE ISSUANCE OF SHARES WILL HAVE ON THE PRICE. NOT ANY MATERIAL EFFECT ON THE IDEA BEHIND THE COMPANY OR ITS PROGRESS IN PRODUCING THE KLH OR THE OVERALL BUSINESS. I CAN ONLY ASUME THIS WAS NECESSARY TO RAISE ADDITIONAL CAPITAL TO KEEP THE COMPANY MOVING AHEAD WITHOUT WHICH THEY COULD BE IN TROUBLE. SO, PUT ON YOUR BIG BOY PANTS, TAKE A DEEP BREATH, AND SOLDIER ON. THIS STORY ISN’T OVER YET – NOT BY A LONG SHOT.

    Like(0)

  13. We just got barbecued. It’s hard to believe that a company can legally manipulate it’s stock price to raise money when the market had priced it at 1.49 and rising. I’m furious. Given the details of the announcement, I don’t see this stock going much above 1.10 for the next three years–perhaps I am missing something. Help me out here.

    Like(0)

    • David, sometimes this is the only way a small company can raise funds to continue in business. Other avenues of more convential financiang simply aren’t available – too risky. So the company has to offer a very sweet deal to attract that capital and be sufficient to reward the risk taker – the “lender” if you will.
      This 12 million or so that will be raised is going to be used to keep the R&D efforts running, not pay big alsaries to company officers. And that is needed to survive with an eye to future prosperity. Anyone who invests in this sort of speculative company must accept this sort of risk. I have no idea where you get the concept of a $1.10 price celing for another three years. You may be right. But I don’t think so. if you do truly believe that I would think you’d be selling right now. Lots are folks are if I’m reading the bid/ask spreads and volume right. That’s fine with me – all speculations have a time when the nervous nellies have to be shaken out. This is one of those times. Me, I bought into this with a 5 year time frame. I pulled about 30% of my stake off the table at a profit of $0.33 per share a couple weeks ago. I’m still in positive territory to the tune of about $0.20 per share – and I have quite a few shares for someone like me. I’m staying with it. I still believe in what they are doing. And I want to be there someday down the line wheren this is just a small footnote in the history of the company and I just might be rewarded with profits that are fivefold or more of what I have in.
      But that’s just me, right or wrong. Now’s when everyone that has ridden this runaway train must decide for themselves what they truly believe and act accordingly. Now that I think of it .. I just may buy more today or tomorrow. If I liked the company and it’s prospects at $1.50, I gotta LOVE it at $1.10!

      Like(0)

  14. A bit of perspective on todays pricing of SBOTF. Imagine that you had embarked on a cruise two weeks ago. It was an “unplugged” cruise around the islands with no cell phone connection, no internet, no twitter or facebook or anything. Just you and the tropical breezes. Today you arrived back in port and after getting home fired up the computer to see what had happened to your position in SBOTF while you were gone. You’d see this quote and just shrug, then go unpack. Because the price would be unchanged from the day you left. A non-event. And you’d not be upset in the least.
    I got my first real introduction of how we sometimes have to view things when I attended a meeting of all South Florida area Merrill Lynch Financial Consultants in mid-November 1987. The keynote speaker was Sir John Templeton. He had been called in to speak to all of us shell shocked advisors that had just gone through the worst market crash since 1929. We even saw two of out fellow employees get shot – one killed – by a distraught investor a couple days after that event. We needed some reassurance, some perspective on all that had happened and how to deal with it. Sir John was just the man for the job.
    He spoke for about an hour, trying to reassue us that this too would pass and that the markets would recover. Indeed, he even said we’d see new heights in the Dow within 5 years. Maybe less. His was, as always, a calm voice of reason admist the swirling currents of disbelief.
    In that talk he said much the same as I just did above. He pointed out that, if an investor had fallen into a deep sleep on January 2, 1987, then awoke on November 1st, when he checked the market indices he’d think the entire year had been a total yawn. Market basically unchanged.
    That analogy helped me regain some sense of balance and perspective. And even though many of those attending this talk guffawed at his comments that day – shame on them – his predictions for a bright future in the US markets was spot on. Sir John was truly a one-of-a-kind of a man and investor. I miss his wise council.
    So put this little event into the proper perspective. The decline just suffered only puts investors back to where we were two weeks or so ago. You were happy and optimistic then. Regain that.
    The Blind Squirrel
    Jim Skelton

    Like(0)

    • It ticks me off that corporations can basically screw the small investor by manipulating their stock price so that the insiders can be positioned to make a killing while the common Dave gets creamed. This wasn’t a free market dip in the stock price Jim–it was directly linked to an action that will benefit the company insiders. At times like this, I wish I had a law degree. It just isn’t right. The free market should determine the stock price–not a dilution of the shares by the company so they can get more cash flow.

      Like(0)

      • David, you can always file a complaint with the SEC, your congressman or whomever else is in a position of authority to change the rules. Not that I don’t disagree with you, your point is well taken, the wealthy make the rules that’s why they are wealthy (and in politics).
        Jim, I’m with you. I have not even looked at the stock yet this morning as my notification of updates to this blog was the first I read and came straight here to read what was going on. Why did I not jump straight to my ticker? As you say, it doesn’t make a hill of beans when playing in the ‘high risk’ market place. I will check the price after these comments are done and probably buy some more shares and average down my cost. I look at these types of positions as either profitable because they make it or they drop off the grid (as it were) if the management can’t keep the company going. Dollars spent, dollars earned, just depends on the net in the end.
        How fun it is to see the panic, it just gives folks like you and me Jim the chance to average down.

        Like(0)

        • I just read the announcement on the web site.
          Jim, you will have more insight into this than I so your comment is requested.
          Why would the company (or any company) that wants to raise capital not offer a discount share price to the current holders on record of the stock and (as per David) give current stock holders a chance at a piece of the tastier pie. And, the company would not have to pay 7% here and 5% there on commissions etc. I can already think of a few reasons but would like your perspective.

          Like(0)

  15. Things sure are heating up in LimpetLand. Before I say anything else, this disclosure: I mentioned I might use this pullback as an opportunity to purchase additional stock. I have done so. I added a bit to my holdings by buying 1500 shares at $1.1755 earlier today. Good move? Ask me again in a year. Only then will I have a more reasonable idea.
    Now, David. David, slow down a bit. I mean no disrespect to your feelings You are well and truly upset by this but you are off the mark with a couple of comments and beliefs.
    First, this action is not “stock manipulation” in an form or fashion. The word “manipulation has a dark and malicious connotation. That is not what happened. The company used a method of raising investment capital that is quite common throughout the corporate world. Essentially, they just sold stock into the market to raise additional working capital. Big companies can accomplish this in a more simple fashion, just by releasing enough treasury stock to the general public and taking in the proceeds. It is dilutive just as this was. But most often they are so big that the hit to price is hardly noticeable.
    Stellar Biotech does not enjoy that luxury as there is no Treasury stock to release. This was their only way to do it. They had to attract what is basically venture capital from some group I have yet to uncover. That will be known soon enough. They had to price the stock at a low enough level to convince these new investors to take on the risk of putting this sort of money into what is actually an unproven company. The warrants are a sweetner that will only have value if Stellar continues to be successful in the push to complete the business plan and bring a sustainable, top quality KLH product to the market and then find buyers that will pay for it. You can take some heart from the fact that those warrants have a strike price of $1.35. That indicates that the new investors feel confidant they will see a price of $1.35 or better within the exercise period of three years. If not the warrants will expire worthless, and these folks aren’t in this game to see something go worthless. So if you need to set a mental minimum price target for the company within a 3 year time frame, $1.35 is a good one to hold.
    As I stated earlier, this is not some scheme by insiders to rob from you and I and give to themselves. They aeen’t getting this money to pocket. They are getting it to provide the cash needed to continue the development of the business, get production underway, increase sales, and eventually turn a profit. I would suggest that anyone who thinks they are holding shares of a company where the management can’t be trusted to be working in the best interest of the company and all its stakeholders get out immediately. I would not work for a company where I couldn’t trust the managements integrity or competentance. Remember; as a stakeholder, you and I are owners, not just passive observers. Our fortunes rise and fall with the fortune of the company. As does the fortune of management and Corporate Officers. Our money is employed there, working for all of us. If a person senses treachery afoot, flee the scene.
    As to why didn’t they just turn to us, offer a similar deal, and raise the capital in that manner, I can only say this: Although I can’t quote you line and verse any law that says this couldn’t be done, I’ve never seen or heard of any such thing. If anybody out there knows of an instance where this was done, please tell us.. There are so many rules and regs in the security industry that I suspect this practice is outlawed. One problem I can see with it is that if they made the offer, there would be no guarantee enough people (current owners) would step up and subscribe. Therefore the company couldn’t know how much they might raise. The deal they struck here lets them know exactly what they will get and when from the new investors. Certainty is a good thing. Uncertainty is not. So even if by some miracle they could have done that, it would be an uncertain venture, messy, prolonged, and unsettling – all of which could have a much more severe impact on share price than this. And besides, it would still dilute the float and cause the exact same thing to happen to the stock price as we are witnessing right now.
    Understand.? No matter how a company goes about raising capital by issuing additional stock, whether to you and I or a new investor, the effect is exactly the same. And that IS part of a free market process.
    And as for the fees and incentives being paid to the manager of the offering, this is standard business practice. Those folks are doing some serious work in getting all this completed and the transaction finished on a timely and totally transparent basis. They deserve to be paid for their work just as you and I do for ours. Don’t resent that. It’s called Capitalism.
    To conclude, I sugget that as painful as it is to see the price decline today, remember a couple things:
    First, those profits most of us were seeing on our statements? Those weren’t really ours. Does that statement shock anyone? Until an investor actually sells the stock and recieves the cash, those “paper profits” belong to what I call “Mr. Market.” And he can and will take them from you at any time. It’s an illusion we create that the gains on the statement somehow literally belong to us, you see. In some way they do – but in another they don’t until realized.
    And last, this transaction to raise operating funds is a good thing for us all in the long run. Not today for sure, but eventually. It allows business and product development to continue. It allows the company to expand and grow and hopefully become the company we all think it can be. And we will be amply rewarded for that if and when it does. You don’t want to try to sue anybody. That would be jousting at windmills because they did nothing wrong. And it would cost you a fortune in legal and court fees if unsuccessful – which I think it most certainly would be. There are no villians here, no plot to rob you and I, no conspiracy underway to pull from my pocket and transfer to someone else. Just a financial transaction that had to be accomplished to keep those Limpets happy and procreating and giving up thier very lifeblood for our benefit. What wonderful little critters they are.
    To quote Malcom Forbes, “With all thy getting, get understanding.” He was quoting from the Bible, Proverbs I think.
    We need heed those words today.
    Regards to the Gumshoe Nation ..
    The Blind Squirrel
    Jim Skelton, signing off for now ..

    Like(0)

    • Well, Jim, I obviously know nothing and you know everything. If this was such an innocent fund raising venture then why when I just tried to get in on the “private offering” of $1.05 a share with the .5 warrant I was denied because I am not a an “accredited investor.” I had no problem buying shares at $1.49 a share on the afternoon of August 20 but I can’t get in on their sweet deal today. Why–because the odds are stacked squarely against the small investor and in favor of the rich and those with inside information. If you don’t think that there are people at Stellar who are padding their salaries and helping their buddies get in on a discount price then you live on a different planet Jim.

      Like(0)

      • David, no, I don’t know everything. But I have been fortunate enough to be in a position for over 20 years where I learned a little something. In addition to working as a Financial Advisor with 4 of the biggest Wall Street firms, I also served as an industry arbitrator for about 3 years after retirement, hearing and deciding outcomes regarding lawsuits investors would file against their Advisors and/or firms. While I didn’t do all that much, I served on enough panels to peel the onion a bit on the legal side of the industry and picked up a bit of understanding in that manner. Bur know everything? I’d never make claim to that. I know little, and I try to learn more every day. I stand ready to be corrected on any issue if given facts to decide by. Not opinion.
        Requiring an individual to meet the criteria of being an accredited investor is a policy set by the SEC and has been in effect since seemingly forever. The intent of this restriction is to protect a person from themselves from getting into a high-risk situation that they may think they are capable of handling at first, then finding out they aren’t if things head south. That’s the kind of situation that arbitration cases are made of and the SEC thinks it’s wise to stop it before it ever has chance to bloom. It’s called “suitability of investment” and that makes up the basis for a great many arb cases that get filed.
        Again, it’s a long-standing SEC policy, not some contrivance of the Officers at Stellar Biotech. I’ve been excluded from a few opportunities myself over the years because I never met the criteria and, like you, I felt indignant at the assumption made by some faceless committee somewhere about my capabilities and abilities. But in hindsight it probably did keep me out of some trouble.
        Now, gather the facts to support your assertion of insider trading, cronyism, and malfeasance and send them to me. Facts, not conspiracy theory ravings. If you can supply those, I’ll be the first to step up and help you get that lawsuit underway.
        I won’t hold my breath .. here on the planet where I live, the planet called reality, breathing is necessary for life.

        Like(0)

    • I mean if you were buying the other day at 1.20-1.50

      why wouldn’t you buy when on sale at 1.15+/-?

      wish I hit that .999 this morning, lucky bastard! probably was you Jim!

      Like(0)

      • Maybe I’m over reacting but it looks to me that the company’s private offering just about guarantees that the stock wont go much above 1.35 for the next couple years unless they get some incredible good news and/or earnings surprises. The presiden’ts optimistic letter in early August certainly gave no indication of a cash shortfall (and the stock soared after that). I feel duped right now. Hopefully, I am wrong and the coming days look much brighter for this stock (and my portfolio).

        Like(0)

  16. Bought at .55/ share, watched it go to 1.49. Now it’s about 1.15. I think were still on the gravy train. Folks didn’t put up $12,000,000. for window dressing. I see a Buy out at about $3-$4.00

    Like(0)

  17. Thanks Jim for the education.
    I don’t begrudge being paid for hard work, I just thought that it could save money, pay yourself instead of them, as it were.
    David, hear ya are:

    ac·cred·it·ed in·ves·tor

    1.investor meeting certain standards: a person or organization judged suitable to undertake an investment, based on criteria such as experience, net worth, and income levels

    What hurts is that had this same thing happen a bit ago with Liquid Metal (LQMT). I’m down (a bit) but not out – long term folks, this ain’t day trading.
    Keep smiling and hope for the 3-4 bucks.

    Like(0)

  18. Jim: Of course Stellar is playing by the rigged rules of the rich, if they are indeed playing by the rules. They have plenty of fancy lawyers to cover their tracks so that they can get away with this baloney–like suspending trading for a full day, sheesh.

    So if I’m being protected now from myself so I can’t buy shares at $1.05 how come I could buy as many as I wanted to at $1.49 on Tuesday or as many as I want tomorrow for $1.14–there is no logic to that argument. It’s a rigged game. I must say that I have indeed received an education today and it’s made me a heck of a lot more jaded regarding the ways in which the rich get richer because they write the rules to benefit themselves. History repeats itself–the top one percent screws the 99% over and over again. I’ve been foolish enough to think that if I do my homework and stay on top of things that I can succeed just like those who write the rules to benefit themselves.
    If Stellar was being such a stellar company, then why didn’t the president disclose that there are cash flow problems in his glowing optimistic letter from just two weeks ago. There is definitely a lot of manipulation going on, legal or not. Only a pompous moron would deny that.

    Like(0)

    • David:
      It’s unfortunate you choose to think of me as a “pompous moron.” That is the implication, right?
      I’ve been thought of as worse. And I will not allow myself to get into a game of schoolyard name-calling. This is a forum of ideas and opinions where everyone ought be respected and the exchanges kept civil. We can agree to disagree at anytime. But that disagreement need not, indeed ought not, become disagreeable.
      I regret that I cannot seem to penetrate your belief that this entire thing we call “investing” is “rigged” against you and I. It is not. But not all things are done as we might wish they were if left to our own devices. For example, you question why the Presidents letter of a couple weeks ago made no mention of cash flow problems or the deal that was being hammered out to resolve that. The answer is quite simple: He and all corporate officers like him have to work under very strict guidelines regarding certain types of sensitive information that they are privy to during these discussions. Letting that information out and into the mainstream can result in some serious charges being brought against the officers and board of a company. Why? Because there is no way to ensure that the information will reach the ears of ALL interested parties at the same time that might be affected by whatever it is under consideration. That news must be delivered very carefully and under strict SEC rules – not the rules the board might wish they could work under.
      I’ll leave this at that and sign off on our exchanges. You say you are now jaded and convinced that you, as an individual, cannot win in this process. I’m sorry you feel this way, but that is your right and I respect it. Perhaps time and additional study will change your mind – or change mine. I don’t know how you are going to save for retirement, provide a venue for putting your money to productive use, and thereby ensure a brighter future for you and yours outside this process. I hope you discover it, though. Good luck, and I mean that.
      Sincerely,
      The Blind Squirrel
      Jim Skelton

      Like(0)

  19. I invested in SBOTF for the long term. I was drawn by Nick Hodge with his very informative report about this rare sea snail off the coast of Ventura California. I did my research, same steps that Mr. Skelton covered. I bought this rather late at .77cents and I expect to buy some more when the stock dips and panic sets in below .77cents. With that said, the stock is very risky and in the early stages prone to short sellers. The company is going to need more cash for R & D and for expanding into additional farms to minimize the possible danger of losing the entire farm to a disease. Contracts are signed with some of the big Pharma, so the rise in share price will start sometime next year. The 12 mill investment by some private investor does not bother me one bit, it seems to be a businessman and investment is guaranteed a profit @ $1.05 p/share. to $1.35 p/share. All we can do is wait until this special purchase goes in the books.
    There’s an important meeting in October of this year that unveils the use of KLH to combat some disease. I expect the price to jump after that for a short term and that’s when the short sellers will cause the drop. This stock has the potential of reaching $5 p/share but 2 years from now. Stellar is the only company doing this, it holds the patents for the production and harvesting, Big Pharma needs KLH to rush their drugs asap for FDA approval. KLH is also very expensive to make and Big Pharma has deep pockets. We just need to be patient and go long.
    Good Luck everyone.
    R. T. Barzallo
    Rookie investor.

    Like(0)

    • R.T., I’m interested in SBOTF, but there are some inconsistencies that I’d like to understand. Does SBOTF really say they are the only company doing this? ThermoScientific sells mcKLH from keyhold limpets grown in mariculture (i.e., “farmed”) rather than in the wild, according to their website. A copy-and-paste is “Inject Mariculture KLH (mcKLH) is KLH that has been harvested from limpets grown in mariculture rather than captured from the wild.” See
      http://www.piercenet.com/browse.cfm?fldID=01010102
      Also biosyn sells KLH. A copy-and-paste from their website is “biosyn returns the animals back to its natural habitat, as it is a humane approach as well ensures that the animals recovers readily…”. See http://biosyncorp.com/klh/why_use_biosyn_klh/

      I tried getting an investor presentation from Stellar’s website and was unable to. I’ll look again.

      Like(0)

  20. Good comment R. T. Despite being ticked off by what I see as some definite misdirection and manipulation by the company, I’m hanging in there. Jesus Jim not everything is about you. I didn’t call you any names, but if you think the shoe fits regarding the pompous moron comment then that’s your choice.

    Like(0)

  21. Well, boy’s enough of the peeing contest. We all would like run with the big dogs, however most of us do not have the deep pockets to do so, if so most likely you would not be on this site. I never read that Stellar was the only company with KLH or the only farm. Stellar is the largest farm operation of farm raised stock. Stellar produces the HIGHEST QUALITY KLH, and is capable of suppling large quantity for the many studies being conducted world wide, Stellar has the contracts and pattens for the methods. If the other producers of KLH can prove them selfs , perhaps they two will receive big dog backing and some of my investment money.
    How do we know that the wild keyholes live after giving blood and than being returned to the ocean by other farms?

    Like(0)

    • Deborah, thanks for the blurb for us to stop already with the testosterone-fueled duels. This isn’t the place for that whatsover. I’m somewhat embarrased I let myself get bogged down in that manner. Never again.
      Now, on to your questions about exclusivity of manufacture and farming Limpets.
      When I saw a previous comment from someone whose name I cannt recall re Stellar not being the only company to be producing KLH nor the only one to have perfected the farming techniques, I must admit I was a little taken aback. I was under the impression that the company indeed did have these advantages and there were no real competitors. And the only place I can imagine where I could have come to believe that was from the original tease video that was released in May or early June. I’ve watched that thing three times and taken notes so as not to forget what was said. Fortunately, as is my habit, I archived it in a file so I can call it up easily. I’ll watch it for the 4th time tonight and post again what I hear Hodge claim. If indeed neither he nor any company employee he interviews makes those assertions of being the only company in the game I’ll be surprised. But the brain is a tricky thing – sometimes we hear what we want to hear no matter what is being said. Ask any couple after a verbal squabble who said what. What they heard during the heat of the moment is often light years away from what the other really said. Been there, done that.
      Back with the rest of the story later tonight.
      The Blind Squirrel
      Jim Skelton
      PS – Hodge re-released that tease a couple weeks ago. Totally unchanged, no new info. Easy to verify the unchanged nature of this “new” release because he quotes the stock price of around $0.60 – just where it was when the first release occured.

      Like(0)

      • Hello Jim,
        Would you mind sharing the link for the teaser video?
        I’ve been looking for it the past 20 minutes with no luck.
        Much appreciated,
        Ricardo.

        P.S. The person who commented about Stellar not being the only one producing and farming is James Fernow, he replied to R.T. Barzallo in the comment #21.

        Like(0)

  22. Just a note of congrats to those of you who are invested in Stellar that understood the market action due to the financing deal, retained the faith in what is happening at the company and the management thereof, and used yesterday to add to positions at those bargain prices.
    One day does make a finished race, but it looks as if all is still on track. SBOTF at $1.27 as I write …
    The Bilnd Squirrel
    Jim Skelton

    Like(0)

  23. Closed at high of day on strong volume 1.32+. Glad I was able to get shares out weak hhands at $1.11. Broughht down my avg. Too bad wasn’t some of thhose that went for .95-.99
    Back to cruising altitude momentarily just some turbulence ladies and gentlmen

    Oh and jim. Thanks for thhe blockbuster story. It relates to one of my current businesses aside from the lesson on investing. Little extra inspiration/motivation to keep pusing on.

    Like(0)

  24. Greetings again to the Gumshoe Nation:
    I think we all may be overlooking something important re Stellar Biotech. Let me explain.
    All discussion here for the past month seems to have been centered around two subjects;
    (1) the “farming” of the Limpets and whether or not SBOTF has an exclusive on that or if there are other companies out there that are also involved in developing this process. From what I’ve read on these posts, it’s pretty clear that there are at least two other companies that are in various stages of becoming successful at that.
    (2) How much revenue can SBOTF eventually generate from sales of KLH to Pharma companies and other medical research firms? After deducting all costs of doing business from the revenue you have profitability – or lack thereof. And it is that profitability (EPS) that in due course drives stock valuation. That’s an oversimplification of this process, but serves for this little discussion.
    We all seem to be totally focused on that sales/revenue idea, and the actual pricie of a gram of KLH, as being the be-all – end-all of what will make us money as stakeholders. In the original tease for SBOTF, Nick Hodges threw out valuation number of from $30,000 to $900,000 (!!) per gram for KLH. Where did those numbers come from? Off the top of his head or out of another part of his anatomy? It’s never explained. And – much like the concept of “hearing what you want to hear” I discussed in a previous post, we heard $900,000. That was a number we wanted to hear, right? We didn’t register the qualifer word of “could” which makes a world of difference. So we ought back off a bit in expectations regarding that number. A really, really BIG bit.
    Another member of our Gumshoe community did a writeup just a couple days ago that put a more realistic light on what KLH is selling for. That post is somewhere above this one in the lineup and worth you time scrolling up and finding to read. He/she qualified the numbers with sources but I don’t know how absolutely accurate they are. I’m giving the benefit of any doubt to them though. Seems far more realistic that what Hodge used and might serve to bring all of us who, like me, may have had our rose-colored glasses on just a little too long here. Hold on now – I’m not saying we’re wrong to have very high expectations for the future of Stellar. We have a tiger by the tail, one I believe is going to lead us to very high returns given time. We may never see the 20,000% returns Hodge touted, but maybe 1000% instead. I’ll take that any and every day of the week!
    What is the actual amount that Stellar is getting per contract from these other companies? It’s not disclosed. Company statements do allude to it as being sufficient to cover company operating costs and production costs at a level that is acceptable to both parties. The implication is that they aren’t trying to wring the last penny out of the sale by pricing the KLH at high levels. Why not? Why not the minimum $30,000 Hodge threw at us?
    It has to do with relationship building and the future revenues that may be obtained if that relationship is nurtured and matures into a long lasting partnership.
    Before I go on, an aside. For those who have been jaded over the past week re the financing deal and resultant hit to share prices, and may now be asking “why won’t the company tell us what they are geting for the KLH? What are they “hiding” from us, the stakeholders? Are they pocketing huge sums for themselves at the expense of us “little guys?”
    The answer to that is that it would be foolish for Stellar to make public the amount they charge these budding “partners”. If a competitior had that information they could and I guarantee you would use it to undercut the price Stellar is charging and take away the business. Not a good thing. So that kind of information is kept private as it should be. Nothing nderhanded or devious happening here. Just good business practice.
    So with that background set, what is it we – or many of us – are overlooking as regards revenues?
    It’s been right there in front of us the whole time. But it’s not sexy, not as attention-grabbing as the KLH production and valuation is. Here is what we’ve missed.
    You’re aware (I hope) that the agreements Stellar has been signing with these Pharma and Research labs gives them the ability, perhaps exclusive, to provide the KLH they need to do clinical trials in developing new drugs and treatment vaccines. But in addition to the revenue that those sales give Stellar, there are – here it comes – also provisions in those contracts whereby, if a drug is eventually developed, approved, and makes it into the mainstream sales of that company lineup, Stellar will get ROYALITIES from the sale of that drug for as long as it is produced and sold. That is part of the overall business plan the Officers and board at Stellar have had from the get-go, and it is potentially HUGE!
    If any person or company can get themselves set up to recieve royalty payments from the sale of some product or another for a very extended period of time, they have something which is wonderful. They don’t have to lift a finger, invest any additional money, or do anything other than get the check on a periodic basis.
    This part of the business model was given a very short and subtle mention in the tease. It’s also been mentioned in a couple previous press releases and other such things. Yet no one seems to take notice of this.
    Stellar already has this sort of agreement in place as part of the overall agreement with some of the companies they work with. It will take time to see it come to frution and there is no guarantee it will – remember, it’s only if a drug is developed and makes it to market that this would matter. But, I feel, eventually some will. And that cash machine will start to spew out money to Stellar, perhaps sums that are far greater that what was gotten from sales of KLH to start with.
    I have first hand, personal experience with deals of this nature. In1998 I started a little business that involves synthetic oils and lubes. I focused on the motercycle aftermarket parts and repair shops, specifically those that worked with Harley-Davidson motorcycles. I’ve been a rider since 1963 and love that sport! Anyway, I chose to take a route with the company I had signed on with (Amsoil) to run my business not as a direct product salesman to individuals, but instead to work as a wholesaler, opening retail accounts with those bike shops. The shops would sign on as dealers to carry the products, place their own orders directly with Amsoil as needed, and I would get commission checks. For doing nothing more than staying in touch from time to time as I wished. I stopped activitely working this business in 2004. But every month I still get a transfer of funds from Amsoil Corp. directly into my checking account. That will last for as long as the shops contine to sell the products orr I die. Sweet.
    That’s the power these kind of arrangements can have. Stellar is positioning themselves to eventually get revenues based on sales of products developed and offered by their affiliated partners. And we, as stakeholders, will benefit from those arrangements.
    I just thought all of us might want to add this part of the business plan into our thinking. It’s not all about KLH. There is more afoot here than meets the eye.
    Wishing you successful investing ..
    The Blind Squirrel
    Jim Skelton
    PS – So you don’t get confused about my business life, this little business I mentioned wasn’t my main source of income, ever. I did that just as an aside from my professional life as a Financial Consultant. It was fun and gave me an excuse to ride “Baby” around South Florida and visit motorcycle shops to see what was new and shiny I might want to buy and bolt onto Her. Win – Win situation!

    Like(0)

  25. I gotta say. You look at most other investment publications, and they are weak — very, very weak. But when you look at the wealth of knowledge on the Gumshoe network, it is so impressive. Between Travis, Myron Martin, and Mr. Skelton here, there is such a wealth of knowledge here. And different perspectives and styles of investing. And the comments from the peanut gallery are a cut above. I’ve been investing for 5 years, and for the first time I’m starting to feel confident in my investing. Kudos to you guys, and definitely “I am not worthy.”

    Like(0)

  26. I’m wondering if many people realize just what a “roller coaster” this action has been. Consider these facts:
    (1) The current bid / ask spread is $0.07. Huge by most measures for a stock trading around $1.35.
    (2) Yesterdays (Wednesday) volume was about 850,000 shares. Nearly 5X the average daily volume we were seeing just two weeks ago.
    (3) Over the past 5 trading days we’ve seen an intra-day low of $0.98 and an intra-day high of $1.63. That is a 50% spread between high/low trades Yep .. I said 50%!
    (4) Over the past 12 months the stock is up just a tad over 300%. Again, yep .. a 300% gain in 12 months.
    Given just those few factoids about this little tiger we call Stellar, is it any wonder why we would expect any dfferent kind of price action? This is not for the faint of heart.
    The only real question is which way will a trend now develop? Onward and upward, or down and dirty. I’m thinking that the next two days is going to set the tone for awhile. It had better be up – I got my heart set on a new 60″ HDTV with all the plasma goodies + a wireless surround sound system and DVD player to boot so I can watch SEC football like I’ve never seen it this season. And I plan to have SBOTF finance that little bit pleasure. In fact, it already has, and more .. but can I now keep it?
    Stay tuned .. this ain’t over by a long shot!
    The Blind Squirrel
    Jim Skelton

    Like(0)

      • The private offering has undoubtedly had a deleterious effect on the stock price. I’m actually pleasantly surprised that the dilution of the price hasn’t been greater given that the company basically added almost 20% to the market cap. at $1.05 and then another almost 10% at $1.35. Given that, the stock price is holding up surprisingly well. All we need now is some good news and I think the shares will rocket up again.

        Like(0)

  27. So glad to find this forum and mix of ideas and information! Will try to summarize my thoughts/situation in 500 words or less:)
    Got the tease video about 2 weeks ago, as part of my daily inbox investment barrage. Watched the whole thing. Fascinated by the premise and the science (have a science/healthcare background). Read everything I could find in the past week, and I mean everything! Started to get “that feeling”, to quote Jim, despite the trading halt and also not qualifying as a “qualified (?) investor. That’s just part of investing, and I agree with others that what Stellar is doing is capital intensive, and has been years in the making. The R&D costs alone on a project of this magnitude would probably shock all of us.
    Have read their poster presentations and research thus far, but what really stopped me in my tracks was the recent memo about having the exclusive worldwide patent rights to develop a vaccine against C-diff!!!!! Between the fact that immunology is at the forefront of disease prevention and treatment, that KLH, and ONLY KLH has the molecular properties necessary to make any of these ideas possible, that it can’t be synthesized…..the hairs on my neck are standing up….. When Stellar, or,whoever owns Stellar at the time, perfects this C-diff vaccine, and I think they can and will, it could blow us all away. Hospitals will use it like Tylenol (it’s an epidemic in hospitals and nursing homes, and you can take nugget of wisdom to the bank:).
    OK, so I am late to the party perhaps, but having a long-range mindset, is there any reason not to get in at $1.40? Usually I’d be kicking myself for not getting in for half that, but oh well…What also has my blood stirred up is not just the national presentation they are giving this month but the presentation next month at a prestigious international science meeting in Australia I think. You don’t get invited to speak at these events unless you have something big to present. I fear the stock price rising after this. Someone opined this rise would be short-lived, because of short sellers? Can someone explain ? Thanks for listening everybody.

    Like(0)

    • Jana, thank you for joining us. Yes, you are right. This has the potential to be a blockbuster…the hairs on your neck type.

      These two conferences will gain more exposure and will bring in many new buyers. The volume has dried up a bit so we are going to battle back and forth in this range. The market makers are in control right now and they’ll want load up before a surge. Be patient. The shares are very oversold at this point. I still believe it is a great buy at these levels. Once we get some positive news, we’ll never see this range again.

      Like(0)

  28. is this “the pause which refreshes?” Rocky road right now–down about 7% for the day as I write this–time for a cast iron gut as I remain a believer with over 10% of my portfolio in Stellar. This is likely an excellent time to add to one’s holdings, but I can’t risk any more at this point. The private placement has thrown the steady rise of the shares into a bumpy ride for the time being. If the company continues with good news in coming weeks this will just be “the pause which refreshes.” The upside to this company remains great. Thanks for joining us Jana–excellent first comment. It’s nice to see other intelligent/educated folks seeing the upside that I and others are seeing.

    Like(0)

    • Thanks for the feedback guys. I think it’s time to jump in, and I hope (and pray) that you are right Sean, that after the good news is out the price will soar. But I’ve also lost enough in the market to know there are no sure things. Still I have more hope than fear about Stellar. Again I am so thrilled to find this forum!

      Like(0)

      • Jana, Prayer is essential. After all this wonderful creature was made by God himself. I like your reference to prayer. Good luck to you.

        Like(0)

  29. I intent to buy more the closer it goes to $1/share as I feel it will again bounce up this fall. I have owned and sold it before. Love the technology, like the stock. This is a great group of knowledgeable people. Thank you.

    Like(0)

    • Hey, good luck to all of us. David, I do hope this is the “pause that refreshes”! And thanks for the kind words; Sean, if it really drops to $1 I’ll smile for you as I grit my teeth…actually I’m happy at my entry point (way under the 1.40 I spoke of earlier). Hope this makes it to the board; I’ve had a little trouble posting with nothing showing up on the board. Under “website” I put “none”. Is that important? I don’t have a website.

      Like(0)

  30. I just read an article posted on the KLH blog on a site called stockhouse that quotes Norm Chow of Stellar stating that 50 keyhole limpets can be harvested twice a year to make 20 grams of the KLH protein which is worth $100,000. The article also has some great insights about KLH being used in cancer vaccines. The article seems to be from an interview and is dated September 3, 2013. I hope this helps everyone. The stockhouse site has some really good info but, unfortunately seems currently dominated by two guys arguing with one another (fordman and goldbarron).

    My opinion of what is currently happening with the stock is that it is trying to find it’s range between $1.25 and $1.50. I actually see this as a promising sign as I expected the watering down of shares to keep the stock considerably lower for much longer. I’m glad I didn’t join the Lemmings and bail when the stock backtracked to $1. I think the stock will start a consistent upward trend again in the near future. However, any negative news could send it tumbling. Such is the risk of a microcap, no matter how promising.

    Like(0)

  31. This is the real Sean. Not sure who my fellow poster is but the last two were not me. My last post was the Sept. 4 post.

    I think you are in great shape at any of these prices. There is serious accumulation going on with some very sophisticated investors. Today’s volume is proof of that. The Market Makers are going to manipulate this and get the best price they can before a run up. Meanwhile, there are many investors who saw $1.20 again and re-upped. This issue is not for the weak. Long term, we are going to see a great return. The short term should be extremely volatile. Again, welcome and happy trading.

    Like(0)

  32. Sorry to the first original real Sean. I am the second Sean. We are different people as there is two of us. Good luck to all. Keep up the research as it helps us all. That’s how we should be. Just needed to clear that up. Sean F.

    Like(0)

  33. Per CEO one gram of KLH currently sells for $5,000. Actually, I did the math, he said 50 Keyhole Limpets can safely be harvested twice a year for 20 grams of medical grade protein each time which nets the company $100,000. This is from a Sept 3, 2013 interview of Steve Oakes by Steve Curwood of the environmental news program “Living on Earth.” Stellar VP Norm Chow is also quoted regarding medical uses for KLH, especially in regard to developing vaccines for cancers. Hope this helps people out. David

    Like(0)

  34. Thank you for clarifying Sean F. I didn’t think you hijacked. I knew it was a coincidence. Welcome to SBOTF. It should be fun.
    Sean R.

    Like(0)

  35. Jim has a nice summary of the meeting in a new blog post: search on this site “Aftermath: Stellar Biotech Conference” and you’ll see his summary and my comment and perhaps some others.

    Like(0)

  36. Up about 4% yesterday and now about 5% today thus far–looks like the Private Placement diution jitters are ending and the chart (after 8 days or so of roller coaster volatility) is trending nicely and consistently upwards again after the big dive the morning of the P P–phew! It looks like the conference has provided a nice pop and is adding new investors.

    Like(0)

  37. Somewhere in all these posts I began to disclose my actual positions and actions regarding SBOTF. Earlier today I said I was watching the price closely and might sell. Well, I put in a limit order to sell all at $1.45 or better. day limit, AON. It went off about 3:45 at $1.4575. So I am now out entirely. Tomorrow is another day and I’ll be tracking, looking for a new entry point. It’s encouraging that the $1.45 I had mentioned as a resistance level was broken and held through the close. If it tracks up from there all day tomorrow and can close convincingly above that level – say at $1.50 or so – we might be on track for $1.75 in a couple weeks.
    I had a GTC in to buy at $1.25 but don’t think that, barring unexpected bad news, we’ll see that again. I’m thinking more like $1.35 as a very good re-entry point, $1.40 would be OK. May turn out that I’ll be back in at $1.60, though, and I won’t cry about it. But I WILL be back in sooner or later, that I guarantee.
    I did some quick math and found that, in the space of 2 months, I’m up 53.2%. All of the gain is now REALIZED gain, mine to keep unless I plow that part back in – which I probably won’t. Other fish to fry. I’ll Just began again with the original amount and go from there.
    I also calculated what advantage, if any, I had garnered from the trading in and out over the past 4 weeks. Turns out I have $263 more than if I had just bought and held from day one. Tiny advantage, but still an advantage. I’ll take it. Can’t put a dollar sign on the fun of the chase .. :0)
    A thought to ponder ..
    I was at the grocery about an hour ago and was just watching all the people stopping in for milk and bread before going home from work. A mixed bag of folks, some neat and clean in dress wear, some sweaty and dirty from a hard days labor in the sun. It occurred to me how very lucky I am. I didn’t sweat a drop today, nor have a boss pressure me to produce more. Yet I made, just by pushing these keys, the equivilent of a full 8 hour workday for someone making $26 an hour. Think about that. And thank God for the opportunity.
    Let’s see what tomorrow brings ..
    The Blind Squirrel
    Jim Skelton

    Like(0)

  38. I don’t think you timed it right Jim as the stock is currently on a steady upward trend with no signs of a significant dip. I’d get back in right now, but then again who knows? I do think that you are wise to take some profits though and just put back in the original principal. That is good advice to anyone to hedge against losses. I’ve done the same and plan to maintain Stellar at about 12% of my portfolio. When it gets significantly above this I will take some profits. That is good advice to anyone–find what you are comfortable with as far as a percentage of your investments–whether that is 2% of your portfolio or 25% of your portfolio and when the stock grows significantly above that position–lock in your profits by selling off what has gone above your decided percentage, don’t get too greedy because if we all happen to be wrong you could lose it all. Hedge your bets.

    Like(0)

  39. All, I find it confusing to have two different pages for Stellar on this site. Can we officially “close” the “Aftermath” page? Thoughts?
    Also, can someone get across to Stock Gumshoe that if they would reverse the sequence of postings so that the newest posts are at the top of the page, it would STILL QUALIFY as being in chronological order !
    And of course I am very pleased with the bump in stock price.
    Jana

    Like(0)

  40. Jana:
    The “Aftermath” post I wrote was meant to be a one-off comment, not a thread to develop. Of course, people can add their own observations if they want – people often hear or see different things when observing the same event. Sorry if it confuses the issue for you though.
    As for the order of presentation of comments, last-first or first-last, argument can be made for either. For a new reader, the first to last is best. Gives them opportunity to read from the start of a discussion down to the most recent which in turn lends perspective. But for those who have been following a thread and have already read the previous posts, seeing the most recent come first makes more sense and the reading easier.
    Even though I, personally, would prefer to see the most recent post appear first (as you also do), I think the first to last format is best overall so that everyone, no matter when they join the discussion, can gain an understanding.
    What I wish people would stop doing is interjecting an unrelated subject into a blog. That can send an entire discussion spinning off down a totally unrelated road to no ones benefit. If a reader wants to make comment that is slightly linked to the topic at hand, but isn’t really germane to the subject, they should open a new comment blog and let it stand on its own.
    And yep, my sale yesterday at $1.45 looks a bit premature with SBOTF having traded as far as ~$1.52 today, now back to !$1.48 as we near the close. As I tried to express yesterday, things like that happen every day – doesn’t bother me at all. My goal was to secure profit and that was accomplished. I’ll buy back in at some price soon, either above or below the $1.45. This horse still has a lot of leg and I’ll resume a role as jockey in due course, riding it to the finish line. Whatever that may be.
    The Blind Squirrel
    Jim Skelton

    Like(0)

  41. Back to all time high range today–looks like the big dip and the subsequent roller coaster for two weeks was just the “pause which refreshes” after the Private placement watered down the shares. I’m amazed that the recovery of the price has already happened–we definitely have a “tiger by the tail.” Many others are seeing superb upsides to this tiny biotech despite the inherent risks of a microcap which depends on one tiny sea creature. Tell your friends and relatives the good news : ). May Stellar continue to progress in bringing health and wealth to many.

    Like(0)

  42. Thought I’d wrap up my week with some honest revelations re my sale of SBOTF last Wednesday in hopes of picking it back up a dime or so lower. Well, Mr. Market had other plans that I wasn’t privy to and the trade didn’t work out as hoped. As I mentioned earlier, I sold just a tad shy of $1.46. And as David just posted, this week has seen Stellar shares on an unending rip to the upside. Last trade I see (it’s now 3:50 PM) crossed at $1.53. Are you aware that last week alone SBOTF started at $1.30 and is now $1.53? Wow!
    So I sucked it up and repurchased just now at $1.53. Cost me $0.07 a share for that little adventure. There goes my (anticipated) purchase of a new rife I’ve been lusting for the past year, the Ruger All American bolt action in .308 Win cal. Sweet shooter. Maybe next month.
    BTW, I’m long Strum, Ruger (RGR) – love it!
    I’m not whining .. as Kenny Rogers told us many years ago, “You got to know when to hold ‘um, know when to fold ‘um, know when to walk away, know when to run.” I walked away all right .. it was the knowing when to do so I got wrong.
    But I’m back in the game again with the same # of shares I had – and I’ll be doubling down on those when the price hits either $1.60 or $1.40, whichever comes first. I’ll let Mr. Market make that decision for me. He does what he wants anyway, so who am I to argue? And then I plan to let this position sit and cook for quite awhile with no further action on my part. Gonna go looking for the next “brass ring” for my portfolio.
    Maybe Travis will drop that new gem into our laps next week with his insight from the Value Conference. BTW, only us Irregulars will see those posts. I’ve asked before in some posts why anyone would let just $49.00 stop them from getting a FULL YEAR of this great info? Say what? You’re not an Irregular member yet? Sign up – NOW :-)! Travis is gonna have to start payin’ me for these promos ..
    Have a great weekend out there .
    The Blind Squirrel
    Jim Skelton

    Like(0)

  43. IMPORTANT _ IMPORTANT _ IMPORTANT
    STOP THE PRESSES! This is, I believe, BIG news I discovered no more than 15 minutes after the above post. You’re gonna want to read this carefully.
    This Morning (Friday) as I watched SBOTF trading I checked to see if there was any news releases. That little blurb I heard during the presentation last Monday about “Our balance sheet is going to look a lot better by Friday” kept haunting me. But there was no stories posted on the research site I use as a primary go-to source.
    Then, as I cleaned up my desk, I looked one more time. This time there was a post – a news story release. One which has led me on a 2 hour chase that is giving me goose bumps as it relates to Stellar and the future potential. Follow me here ..
    The story I saw was from a source called “The Midnight Trader” and entitled “Stellar Biotechnologies Raises US $10 Million In Initial Closing of Private Placement. Shares up 3.7%.
    Oddly, the story is dated Sept. 10, 2013 – not today, Sept. 13. Don’t know why or where it has been for those 3 days. We knew this funding was coming – it’s the placement that got so many folks so riled up a few weeks back. But we didn’t know where the funding was coming from, or from whom. There was subtle mention of some “reclusive billionaire” made but no names, no firms.
    Well now we know, and it is EXCITING!
    The third paragraph of this short announcement reads “The non-brokered portion includes a US $5,000,000 investment by Amaran Biotechnology, Inc., a privately-held Taiwan biotech Company and biopharmaceuticals contract manufacturer.”
    There is one piece of the puzzle – Amaran Biotechnology out of Taiwan. So, who are they?
    A quick search in Google with the company name turned up many stories. One is from the China Post and entitled “Taiwanese retail billionaire Yin ventures into botox investment.” You MUST go there (use Google just as I did) after finishing this read. More detail than I can provide is present as well as additional stories.
    Seems that one Mr. Samuel Yin, the sixth richest man in Taiwan, is our “reclusive billionaire” and has very, very dep pockets indeed. And is very deeply involved in all things Biotech. Which now includes Stellar Biotechnologies.
    Yin is Chairman of Ruentex Financial Group. This story details his new venture in breaking ground on Taiwans first botox research and development factory in Zhubei City. This is apparently a joint venture with another Taiwanese biotech scientist and well-helled individual, Michael Chang. Chang is a board member of Yins Amaran Biotech and his wife, Tessie Che, is nominal chairman of the company.
    Confused yet. I was too until I read the story and others about 4 times and got everybody and everything sorted out. Here’s the takeaway for us in Stellar Biotech.
    We are now partnered with a truly major investor, company owner, and Biotech scientist in Mr. Yin. He obviously believes a great deal in the future of Stellar, both in terms of the business they are in and the future value of the company. He can provide investment capital from his own pocket (no shareholder approval needed) to support Stellar into the future. He may – and I’m guessing here – have also needed to get this alliance in place to provide himself a reliable source of KLH in the botox R&D programs he will be developing at Amaran Biotech. He may someday want to simply make a buyout offer for Stellar in its entirety. And so on it goes ..
    For you and I, now we know why management at Stellar Biotech handled this offering as they did. I said at that time we had to trust them to be doing something that would be to our long-term benefit even though it might cause short-term pain (dilution). I think this more than qualifies for that concept.
    As for me, I’m excited at this new connection. I said previously that I would wait for Mr. Market to tell me when to double down at either $1.40 or $1.60. I retract that statement. Monday, at whatever the ask is, I’m acting. May even pass the “double” and go all in at triple my original commitment. You do what is right and appropriate for your situation – I am not recommending anyone follow my lead.
    Now go read these stories for yourself, especially the ones from the China Post.
    I really gotta quit this for now. But I AM PUMPED!!
    The Blind Squirrel
    Jim Skelton

    Like(0)

  44. Another Billionaire bought 1 million shares: Stellar Biotechnologies investor buys one million units 2013-09-10 19:14 ET – News Release Mr. Ernesto Echavarria, an investor, reports ERNESTO ECHAVARRIA ACQUIRED SHARES IN STELLAR BIOTECHNOLOGIES, INC. Ernesto Echavarria of 1225 Blvd. Pedro Ma Anaya, Culiacan Sinaloa, Mexico, 80040…

    Jim and I are thousandaires! LOL

    Like(0)

  45. Can anyone say all time high? The Private Placement raised cash quickly and from at least two billionaire “insiders.” This has given the market even more confidence in Stellar’s future and the stock price is off to the races again.

    Like(0)

  46. A run up on the good news but don’t let the high side fool you (or me). I agree that this is the start of something good (with the big buck investors joining in). I am going in for a few k more shares. I will average up somewhat but I believe the trend will be favorable for the next few days until the hype wears off then we will see a settling. (personally I sure hope not and this goes up like crazy :-) ). After the settling, a nice steady climb is favorable rather than the nasty saw blade effect that keeps us all on the edge of our seat (watching the graphs jump up and down).

    Like(0)

  47. My jaw is dropping daily at the increase in price! I think the stock is worth a lot more, of course. But I also wonder how long all of these good feelings will last until the choppy waters begin again. Anyone taking any profits? I’m up 40% and nervous.

    Like(0)

  48. Watching the trend for the past two weeks–it looks good to stay all in at this point, but if the nerves are getting the best of you then sell your gain and keep your principal invested. No one can predict the future with certainty so locking in some gains at some point certainly helps avoid ulcers. The trend tells me that it will be another very good week, but there certainly will be some profit taking at some point and I loaned out my crystal ball a few years back and it was never returned to me : ).

    May the Giant Keyhole Limpets continue to provide health and wealth to many.

    Like(0)

    • Thanks guys, for the input. I personally think we are onto something big, but I do worry a little. Not losing sleep yet. Don’t Want to sell; like I said I’m more of a buy and hold type, through thick and thin unless something drastic happens.
      In my heart of hearts I hope they make some blockbuster vaccines and other great things for society’s good – I really do. Cancer rates are out of control; and if they nailed a vaccine against Clostridium difficile I might just pass out. That superbug is so horrible and affects so many patients, many of them geriatric, and makes their lives miserable and screws up treating the condition that they came in for in the first place. So yes, I want everyone to live happily ever after, AND I’d like to see an awesome return. Is that really too much to ask from one microcap? :) I’ll continue to hope and wait.

      Like(0)

      • The journey continues Jana. Another good day. + volume/+price. I’ve taken some profit here and there but still maintain my core shares. I believe in Stellar and buy/ hold should payoff. Just be sure it is money you can lose. You never know with these types of endeavors.

        Like(0)

  49. I am glad I am a buy and hold investor on Stellar in @ .63 , today I am up 175.79 %. I purchased 6000 shares and wished I had sold some of my other positions and bought additional, however it is had to sell positions posting good returns as well. I think we may see the 5.00 mark, much sooner than later.

    Like(0)

    • Congrats Deborah…you will continue to be rewarded. The shorts tried to jump on today and got bounced off the ship. We’ll see what tomorrow brings.

      Like(0)

      • Sean, where do you get your short selling info? I’ve never really needed to know before, but I’ve never held a microcap before. Up 12% ; what do you think of that? Up 50% in 12 days… I’m thrilled and still a little nervous. What you said about not investing money you can’t afford to lose is good advice. I heard that many times growing up, along with “it takes money to make money” from my dad, who was a broker. He may be rolling over in his grave, but IMHO, the average investor has access to so much more information today than 30 years ago. This site if full of well-informed people who have spent time doing their own research, digging up facts from many sources. Amazing really.
        I would LOVE to visit Stellar and look over their Limpet breeding grounds for myself, talk to employees, maybe the CEO … C’mon it would be fun -who’s with me??!!

        Like(0)

        • Great question, Jana. I follow Level II intraday and make sure to identify the short positions or the trend, at least. ARCA was heavy with shorts a couple of weeks ago. I waitied for them to stop pressing and finally started buying again. I stopped purchasing at $1.57, ….for now. As for today’s shorts, there were a few in 2000 lots around the high $1.60s and they got squeezed. The chart Bopped + right after they shorted. it was hilarious to watch. It was at $1.80 in no time. You win some, you lose some. The shorts will have their day again but for now might be a little more cautious.

          Like(0)

          • Sean I looked into the Level IIs and I must have slept through class that day. I am feeling uninformed and am now in the remedial group , and
            will try to catch up. I get some info from my IB acct. , that I look at before a trade, that’s in real time…ask/bid…which side is pushing the price direction but not nearly as detailed. Anyway I am “sticking” with what I have – invested every available resource at $1.18 and have no regrets. Heck I only found Stellar first of this month!! And I’m also just glad to be here. Thanks for your helpful comments

            Like(0)

        • Jana, I’m with you. I’m in LA (Burbank) about 35 clicks from their local. If we get a few that want to visit I, you, or ? can contact them and set up an investors visit.

          Like(0)

          • Roger, tell you what. If I am able to make “x$” (to be determined) I’d really love to do it. Being so close you really have an advantage! I’m in Arkansas so would take some planning… How many people would it take to make a respectable showing? Or maybe it’s how many shares have to be represented to make a respectable showing :). Considering your wife’s expertise I think she would be all over this one. I’m no PhD and the science behind what Stellar is doing got my attention ASAP! So we will see what happens. J

            Like(0)

      • I have always said (when I pronounce a word incorrectly) “Someone has to come up with the new words”. Kind of the same with companies listing on NDQ, they have to come from somewhere and the pink sheets is a good a place as any.

        Like(0)

  50. I’m thinking Vin Diesel has gotten involved here. It’s nothing if not “Fast and Furious!”
    Seriously – I’ve not personally seen anything like this since WAAAY back in the day – 1986 – when I found Telephonos de Mexico at $0.125, then watched it shoot to ~$0.85 in a little under 6 months. That was my best position ever. Until possibly now. And the volume – over 500,000 shares crossed by 10:30 AM, and that TWICE the 90 day average volume.
    We’ve backed off the daily high af about $2.11 a bit now, back to $2.20 as I type. God only knows where this day will wind up.
    All I can say – and I’m sure all would agree – is that I’m thankful I took the plunge on July 18th and went way too deep into this idea. Big risk – now big reward. I actually found myself laughing out loud a few minutes ago when I pulled up my real-time account values. I’m done guessing about this blessing .. sometimes you just need to sit back and enjoy the ride!
    The Blind Squirrel
    Jim Skelton

    Like(0)

  51. Hi Jim and fellow Gumshoe-ians,
    first of all, Jim it is a pleasure to read your postings and thanks so much for the ‘by-the-Way-education’, great days to be one of the Gumshoe-ians and be able to be part of this.
    I have been a Gumshoe-ian for about two years and it was one of my better decisions to have joined the profitus-maximus-irregularies.
    When I first heard about SBOTF I put it on my watch list and than when I was ready to make a move I missed the boat when it was traded around a dollar. I put it on the side and before I knew it we were at 1,50. This time around I got on board and and bought some shares. The next day it was around one dollar again and I felt like shit. I could not believe it, the exact day I bought the shares they went down that bad.
    I did some research and found out about the 12. 000 000 plan and decided that it was not such a bad plan after all. So the same day I doubled up at 1.14.
    Stellar kept climbing and climbing as you know and I sold yesterday 3/4 of my shares for 1.68.
    Today I discovered this blog from one of my favorite fellow Gumshoe-ians, aka. the blind squirrel and believe it not, I went back in again this afternoon. Yes, my average now is a poor 1,77 per share, but I am in for the longer journey this time and if the chance offers itself I’ll buy some more in the future. Great stock, great time to be part of this and hope the story unfolds in a way we can only dream of…good luck to all of us.
    Herbert

    Like(0)

  52. Keyhole Limpet blood appears to be rocket fuel for it’s stock price–up over 25% in two days, WOW. I’m out of English adjectives so will use my French–incroyable, fantastique, formidable.

    Like(0)

  53. Herbert:
    Jim Skelton here, a/k/a “The Blind Squirrel.” Thanks for the kind words about what you see from me from time to time. We all like to be appreciated.
    A couple asides re your comments:
    First, don’t beat yourself up too much about your entry point with Stellar Biotech stock. Every single one of us here wishes we’d have done more, sooner than we did. It’s human nature to keep looking backwards and imagining what could have been “if only.” That’s a huge waste of time and psychic energy. Someday, if things go as we think they will, you’ll hardly remember what you paid for the stock today. And you’ll be wishing you had done more at $1.70 or whatever. I’ve saw that a thousand times with clients during my career as an Investment Advisor. Note I said “if” things go as we anticipate – therein lies the question.
    Second, my asides, the things you mention as “By the Ways”, come from the litany of stories I have about things clients did – or didn’t – do over the years. These war stories always have a point, a lesson inside them that are well learned by all. Learned, hopefully, before they apply directly to them in the case of bad outcomes. I don’t share those as a means of beating my own drum or to stroke my own ego. Just to offer some insight into how things sometimes work and what you can do to benefit from that knowledge before it might bite you in the keester.
    So welcome to Gumshoeland, home of the hoping-to-be-rich and not-yet-famous. Are you an Irregular member yet. Just do it. Best $49 you’ll spend this year. You seem to have few reservations about sharing your thoughts in the open, and that’s a good thing. While not everything you see on these blogs is what you might call brilliant – mine included – it’s that interchange of ideas and thoughts that keeps us informed and up to speed on the topic at hand. I encourage EVERYONE to get involved and express themselves and let the chips fall where they may. Without fresh thinking we grow stale.
    Regards,
    Jim Skelton
    The Blind Squirrel
    “Even a blind squirrel finds an acorn every now and then”

    Like(0)

    • Jana: no theories here, but from the chart i got the price spike was at 3:30 pm at 9/18 according to TD Ameritrade.
      Anyway, at this time this price spike seems irrelevant. We are back at around $1.70as i am writing this lines and i decided to buy some more.
      It is quite a ride. I just was reading Jim’s words again :’ So, if you have the wherewithall and nerves for it, climb aboard, pay the fare, and hang on for dear life. It just may be a wild ride!’
      I just had read those words and kind of smiled to myself, then I checked on SBOTF and it had dropped from about $2 to about $ 1.8. Today i was hoping for a calm day, after all the excitement yesterday. Good luck to all of us.
      Jim: I do not know if you missed it, but I joined Gummi a while ago. Really one of the best decisions in the last two years of my life. I am learning so much and so much more to learn. Keep up your great work with and for the Gummians. You are a great addition to the show. Thanks

      Like(0)

      • Herbert, Welcome to the site. Hopefully I have the stomach for the ride – 2 weeks ago I filled my wheelbarrow to the top, so I’m very much “in it to win it”. Jim does keep us up to date and well-informed ; thanks Jim. I too think this site/people/ blog are great, and I also joined the irregular gummies. Not to belabor this, but is it possible the large spike had something to do with short-sellers? Sean, I’d be interested in your take. Still hanging on, JB

        Like(0)

        • Hey Jana, it was expected. In fact I wouldn’t be surprised by another $.20-.25 pullback at this point. The oversold signs were screaming. When the buying finally dried up this afternoon, they pounced and shorted it all the way down. The MM’s are going to play with this as long as there is no news. The weak hands panicked and they laughed all the way to the bank. I plan on loading up again in the $1.50 range for some more trading shares. My core shares are untouchable and I’ll be riding those into the sunset. Keep the faith. This is a unique company and unique opportunity.

          Like(0)

  54. It’s now Friday AM, 4:45 AM to be exact. The sun will be up in a couple hours so it’s time to get up and running myself. After the selloff yesterday I’m in great anticipation of what today may bring. Glad I held back the final 1/3 cash position for additional acquisition if Stellar pulled back from that runup of the first three days of the week. Well, the “pullback” has arrived on our shores. Hurricane flags are up everywhere. I’ve got my shutters up and the emergency supplies prepared. Here we go ..
    Actually, this post isn’t about Stellar in particular. I got a message – a very nice one – from a gentleman name of Robert Vinciguerra yesterday. I can’t find it anywhere on these posts but felt I ought to respond. Hope you are seeing this, Robert. I need to correct one thing you said befor people might get the wrong idea.
    You said you appreciated my comments as “an analyst”. That’s flattering to be sure, but know this – I am not nor have I ever been an “analyst” in the conventional sense. I was a Financial Adviser or Financial Consultant or Account Executive or whatever label the investment firm I might have been working with at the time wanted to label me as. Marketing, you know? What I was is best described in the old school manner: a stockbroker. It became quite unfashionable in the 80′s and 90′s to call myself that No panache, no hint of professionalism. So firms listened to their marketing folks and gave us all new identities. But the work we did was all the same exact thing. And if there was one thing we were told NOT to try and do was be an analyst.
    Firms had/have droves of professional analysts that they pay some big bucks to so they can crunch and twist and squeeze the available financial data and come up with recommendations for the brokers to pass on to clients. it’s well meaning .. but quite often wrong. For me to do some creative thinking on my own and start recommending a client buy an issue that our analyst had a hold or sell recommendation on was frowned upon by compliance nerds, a/k/a the “Bureau of Business Prevention.” So no, I never really learned any true skills in that department. A smattering, yes. But nothing in depth.
    What I do use is something that can’t really be quantified. It’s called common sense. I’m a story guy, not a numbers guy. Numbers can and do change at any given moment. A news release, a company report, a drop in sales, you name it – any number of things can come in right out of the blue to destroy even the best thinking when that thinking is based on numbers and projections. So while I do look at some of those critters to see if I may be on track with an idea, it’s not what drives my selections.
    What gets my attention is the back story of a company. Take Stellar Bio as an example. Wanna crunch the numbers? What numbers? They don’t have any! Wanna project sales figures? What sales? As of today they have almost none of consequence. And as for earnings, P/E ratios, dividends, etc. – there are none to be found. So what can I look at? I can look at the story.
    I’m not going to go into that. You obviously have a deep understanding of it yourself as do others on this blog. You don’t find compelling stories like this often. I can think of my past and recall similar things about Telephonos de Mexico, Harley-Davidson, Intel, Blockbuster, Citibank, and now Stellar. A few others less compelling but still good plays. So maybe a bakers dozen or so like this over the past 30 years. And being in them EARLY is what can make or break a portfolio over time.
    So, sorry if I disappoint you about my credentials. I’m just an old dog with some experiences most don’t have that came to me as part of my being an F/C for some 20 years. There are several other contributors here that have a much deeper understanding than I about things like short-selling and technical analysis. I’m more of a Peter Lynch type who used what I think he called the “grocery store shelf” approach to investing as part of his stock picking process. He said if you saw a product on the grocery shelf and then kept seeing that it was never in stock, BUY THE COMPANY! Don’t need to read a balance sheet or P&L to follow that advice. Just common sense .. and a good back story!
    And finally, your request for me to offer opinion on a company you have been researching and are somewhat taken with. Robert, I don’t think I’m qualified to do that. Yes, I certainly will have a look in due course. It sounds as if it may have a “story” to be told of its own. To be honest, I am neck deep in research and selection of a new personal portfolio for myself that is very comprehensive and will wind up holding some 60 or so positions in different classifications and sectors. Just yesterday I began buying for this portfolio and have maybe another months work to do before it is fully fleshed out. So I really don’t have time to investigate anything new at this point.
    Besides – and you will note I don’t offer the name of your company here – I don’t want to risk opening another avenue of discussion in this blog. This is all about Stellar, and introducing something else into the mix can get confusing real fast. I would urge you to do this: Start a new micro blog of your own about this idea just as I did here with SBOTF. Tell us all you know. Ask for comments. There are a lot of very smart people in Gumshoeland that would love an opportunity to look at your idea. Put it out there in a thread that is specific to that company and see where it can go. I’ve been drop-dead amazed at what has developed here. Still am, every day. Same may happen for you.
    Good luck with all, and may you find your acorns plentiful, fat and crunchy!
    Regards,
    Jim Skelton
    The Blind Squirrel

    Like(0)

    • Hi Jim, I got it! I’m alot closer to your type of investing than the number crunchers. I just might start that blog before long. I got into that one because of its compelling story, sort of like Stellars. Thanks for getting back to me with such a thoughtful response. Regarding Stellar, I got in on the IPO and at that time the ‘plan’ was to get the company chugging, then listen to takeover offers. At this point I have no idea if they’ve changed their thinking on that, but with their product in so many phase trials, and the tiny float, I’m thinking this one has a lot more to run. Good luck to all and its a pleasure to be a gumshoer…. just have to get over the stigma of being an irregular, which in most cases, isn’t a good thing…. just finished the coffee, gonna try and be regular now.

      Like(0)

      • Certainly room to run. It’s seems as if they have started the process to becoming a viable, independent company rather than an acquisition target. They have a very strong board, cash in the bank and multiple trials and agreements in place. They should be able to stand on their own. Once the revenue arrives, this should go very far. If they are going to be acquired, now might be the time because they aren’t going to get much cheaper.

        Like(0)

  55. Here is a ‘forward looking’ exercise I do with stocks like Stellar – it’s kind of my crystal ball. I, like everyone else, am always trying to predict the future.
    - download from NASDAQ the 1 year (or more) quote spread sheet for the stock. (.cvs format)
    - double click the .cvs file. It will open in Excel.
    - select a layout 1 graph. (line graph)
    - create the graph using the dates as the ‘Y’ axis data and the daily close as the ‘X’ axis data. When this is completed the graph will look like the normal stock close history graph we are all used to seeing.
    - Up at the top of Excel click on ‘Layout’ and select ‘Trendline’.
    - click on ‘Exponential Trendline’. this will add a curved line to your graph.
    - now the trick for future prediction is to select the ET line, right click, and select ‘Format Trendline’. Keep the ‘Order’ at two. Down in the ‘Forecast’ section in the ‘Forward’ box put in how many days you want to ‘trend’ forward. You can keep this box open and watch the line change as you change the numbers (type the number, then click on the Backward box to see the change).
    I also like to drop in a ‘Linear’ line for a more conservative trending indicator.
    This is my crystal ball process.
    Have fun :-)

    Like(0)

  56. Good perspective Roger re. the penny per day average gain.
    I’ve tended to be much more of a buy and hold investor in the past, but then again I had alway avoided microcaps in the past as well. Something struck me Thursday morning when I saw that Stellar opened up only about 2% after it had been rocketing for three days. I expected that profit taking would be happening since the stock had zoomed about 50% in two weeks and basically 30% in two days. I had an urge to sell at that point and it became stronger as the stock began a slow decline in early trading, then I would let the profit taking and/or panicking happen and get back in after the sell off. The buy and hold and the “loyal” investor thoughts in me won out and I didn’t do it. It would have been a very smart move. I am assuming that there are many “traders” who attempt to make a lot of money off of the volatility of popular microcap stocks. I will never be a trader but the next time there is a huge run up and I see what I saw early Thursday morning I may just sell before the slow decline becomes a bit of a panic and then buy back at the end of the day. Can anyone give me any insights on this type of strategy? I will be in Stellar for the long run, and I don’t expect that I’ll ever be able to be a perfect market timer, but obvious and expected pull backs like Thursday in a stock that makes big moves could be an opportunity. Then again, maybe the non market timer in me will continue to win out! Most people who think they can time things perfectly tend to lose a lot of money in the market and/or the casino! : )

    Like(0)

  57. The big reason why I don’t try to time the market with stocks, and why I didn’t sell a chunk to buy cheaper in the near future, is the tax consequences. Come the day that this issue goes thru the roof (and that day will come imho), those who have been buying and selling, will find themselves with a short term gain, taxable at a much higher rate than a long term gain. Those holding their positions will be able to sell at a moments notice without sever tax implications. Personally, I think it sucks for the government to take a huge chunk of speculative profits. I mean they only let you put in for $3000 in losses per year as a writeoff, and how many speculative companies have gone bust? When I truly believe in a company, i’ll average down, may sell some to cover my initial investment, but I never try to day trade or short trade. I bought it because I believe in it, and I’ll sell it when things change to the extent that I no longer do. In the meantime, i’m racking up long term gains at the lowest possible tax rate.

    Like(0)

  58. Robert, one other item that many traders in microcaps (penny stocks) forget to factor in is the cost per trade. Usually not free if penny stocks.
    I am also in it for the long haul. I will buy more when the shorts drop the price for me, like they did yesterday. The old saying “buy low, sell high” hasn’t worked for me, my crystal ball has a tendency to stop working at the same time I look at my clock. :-) So I average on the low and sell (some) when the value is high enough to cover (some/all) of my original stake.
    Like Mr. Squirrel, I read what I can find on the company I’m interested in, I read what folks like all of you are saying, I read the SEC filings, either do know or educate myself about the industry the company works in, and then buy or not buy based on my gut feeling.

    Like(0)

  59. I hope everyone realizes what is happening here. The softness is due to weak hands in the $1.70 range. The $2.00 clients have already sold thinking this would still continue to rise. There is no news right now and the hype has worn off. If you can weather the next $.20 downward, you’ll be OK. This will come back with a vengeance. Many of us are waiting for the next big dip…which was not $2.10 to $1.70 btw, that was all hype and testosterone poisoning. I think it is around $1.50 unless there is some sort of good news. When we hit $1.50 you are going to see very heavy support from the MMs and many of us who know this is the last time the shares will be that cheap. Best of luck to you longs. Keep the faith. This stock is going to make many of you lots of money.

    Like(0)

    • Thanks for the update Sean. I expect the price to bounce around but it’s nice to hear some wisdom to make sense of it. Still have a lot to learn about MMs. Good luck with your trading. I know better than to get into that myself. Happy to see it all unfold (as long as it does so in a Northern direction). JB

      Like(0)

  60. My pleasure, Jana. We should head north at some point:) Understand that this is no surprise. Stellar has a great long term plan but no real revenue at this point. They are in the midst of several trials and waiting for one of these to stick. When that happens….we’ll be laughing at the $1.50s. They’ve been hyped by a couple of newsletters and that tends to skew the numbers higher as well. Relax, enjoy, and we’ll all take that tour of the facilities at some point.

    Like(0)

  61. I’m not counting pennies on this stock, I’m counting dollars. 3rd or fourth quarter 2014 should have us sitting pretty. My spread sheet projection gives me just a hair under five bucks 300 days out and just under $2.00 by 11/19/13. It will be fun to see how my chart pans out.
    Jana, I started a commentary on Plug Technologies and posted a link to an article that was published today – if you are still interested in that stock.

    Like(0)

  62. From The Blind Squirrel
    Jim Skelton
    First, this; I’ll not venture a guess as to how far this current downdraft will go or how long it may last. Some of you seem to have much clearer crystal balls than the one I own. Mr. Market is toying with us right now to see who is a believer and who just thought this was free money. I mentioned in a post a couple weeks back that I thought the days of the “easy money” were gone. I still hold to that idea. But that’s not to say the days of “more money” are also past. Far from it. So while I won’t guess about pricing and invoke my version of WhodoVoodoo charting analysis. I will agree that “this too shall pass” and much better days are coming.
    And not for nothing, there is some really good news out today that has not been mentioned. I’m talking about the appointment of Dr. Tessie Che to the board of directors.
    If you haven’t seen that news release, go to the company website and read it.
    Dr, Che is an extremely well qualified and accomplished scientist and businessperson. Her presence on the board will serve us all well.
    Dr. Che serves as chair of AMARAN BIOTECHNOLOGY, a Taiwanese Biotech company. Does the name AMARAN ring a bell? It should. Amaran was part of the financial backing (some $5 million of it) in the recent transaction by Mr. Samuel Yin, the Taiwanese Billionaire. This is where it gets interesting. Always follow the money.
    Amaran Biotechnology is the new botox R&D company that is being funded by Mr. Yin. He is the major stockholder there. Investing alongside Yin in the Amaran venture is Mr. Thomas Wu, another Taiwanese billionaire and chair of Taishin Financial, Taiwans largest financial holding company. So here we have two of Taiwans most successful and richest men that are now involved and interested in the future of Stellar Biotechnology. But it gets better.
    Men like that don’t just throw money at an idea and simply hope for the best. Even though $12 million or so is just walkaround money to them, they still care. Remember the Michael Douglas movie “Wall Street’ of about 10 years ago? Remember that investment he made in the airline “Blue Streak” or something like that? He did so because he found out something no one else knew and he put his “guy”, the aspiring young stockbroker onto the board to be his eyes and ears to the company. Well, in our case .. enter Dr. Che.
    Dr. Che is the wife of Michael Chang, a biotech scientist who is on the board of Amaran. Dr. Che, as mentioned, is chair of Amaran. Mr. Yin owns over 50% of Amaran shares and so controls it through his Hui Hong Venture Capital company. So guess who Dr. Che ultimately works for and reports to? That’s right .. she is the eyes and ears of Samuel Yin.
    This can only be a good thing in my opinion. Yin will be following the developments at Stellar with an even closer eye than before. If something is needed, he’ll be aware and certainly has the capability to provide it. It’ll be a sweetheart deal like the first one, of course. Don’t sweat it. Ride on his coattails. He got rich and can help us get a little slice of that pie, too. And who knows? He just might someday decide that Stellar Biotech would make a nice fit within his holdings at Ruentex Financial Group, his primary holding company. Buyout time! But careful what you wish for. He, like the Michael Douglas character, looks out for number 1 at all times. That’s how the rich get richer.
    So crunch all the numbers you want, do all the convoluted charting and math that is at hand. No disrespect to anyone that follows that course, but I simply have little faith in the process. I prefer fundamental analyis .. and a good story! Bottom line is simple: stay invested with the people that know a helluva lot more than we do about what is going on and ride it with them. Whenever you think you “know” a bottom has arrived, buy what you can afford – in terms of money and risk, of course. Then relax.
    And never, ever forget this: the monetary valuations you see on your statement are not actual values that you own – yet. It’s only nominally yours. As long as it’s invested in a company, that money still belongs to Mr. Market and he can take it away at the drop of a hat. Or give you more. But it ain’t yours until you sell bank it.
    Dat’s it for now. This Blind Squirrel is off to read Myrons new article on Rare Earth possibilities. I think I need some of that stuff. Sounds exciting!
    Best of investing to all the Gunshoe Nation!
    Jim Skelton
    The Blind Squirrel
    “Even a blind squirrel finds an acorn every now and then”

    Like(0)

  63. Jim, I did notice the appointment of Dr. Che but thanks for the background info. Roger I went to your link – a lot of good info there. There is another biotech that has my attention right now. If anyone would like to discuss CTIX on a different board please let me know – it also is giving me “chills”. Cheers JB

    Like(0)

  64. Jim,
    Please could you throw some light on these questions?
    Any specific reason for today’s drop from 1.63 to 1.37?
    Can KLH be produced synthetically and is there anyone else out there trying to produce it?
    Any chance that the top management team can be padding the results?
    I know you don’t have a Crystal Ball but still would like your opinion. Do you think it will drop some more or is it a good time to move in?
    Thank you for your time and guidance.

    Like(0)

  65. Ouch! Momma said there would be days like today. I’m going to search around the internet for answers to the downtrends the last 7 or so trading days and today’s dramatic drop. Microcaps tend to make more dramatic moves than other stocks but today was rather ridiculous, unless there is some negative news out there somewhere.

    Like(0)

  66. I haven’t found any news online nor any credible theories on message boards so I will posit my theory–a big investor or two has become nervous and is taking profits. This could be a second round negative bounce related to the Private Placement. I was frankly shocked that the stock rocketed up so quickly after the low ball PP. That was likely on the confidence of Stellar raising the funds so quickly and two billionaire smart investors taking up half of the shares in the PP. If one of those investors has sold off some or all shares then the stock would plunge. A second possibility could be somehow related to Amran Biotech–either less confidence that there might be a stock buyout or some type of negative news regarding this company from Taiwan.
    I still believe that Stellar stock will be a huge winner, sooner rather than later. In fact, I think it will be a huge winner in 2014 and for many years to come.

    Like(0)

  67. Thanks David. If your theory is correct, then either he/she was in to make a quick buck or found something objectionable in the company. The rise is always due to unbridled enthusiasm but the steep drop smells of burning rubber. I hope the company provides some news with regards to its research and vaccine trials.

    Like(0)

  68. There were approximately 75,000 shares that caused this drop. With the low float, the volatility was inevitable. Weak hands will be smoked out and many of us are here to pick up those shares.

    Like(0)

  69. My order for some more shares went through yesterday. I probably will buy some more shares today. My advice to myself and everyone else is: Try not to ‘over-analyse’ (perhaps this not an English word, but can’t find a better one right now) every move Stellar makes, stick to what you believe and take advantage of bad days in the market. GOOD LUCK TO ALL OF US. No guarantees here nor anywhere else in this world.

    Like(0)

  70. TO: AH – AND THE REST OF THE “STELLAR INVESTORS” COMMUNITY:
    FROM: JIM SKELTON, THE BLIND SQUIRREL
    AH:
    Thanks for the direct request for my take on this downdraft of Monday. I had decided that given the volume of comments, guesses, hopeful musings, and other such things I would spare everyone one more of the same from me. But you asked, so I’ll answer in the finest tradition of Blind Squirrels everywhere; I’ll give you my best guess, supported and documented with the finest guesswork and conjecture to be found anywhere :0)!
    “These are the times that try men’s souls.” Not to mention their financial well-being. I know mine is being tested for the umpteenth time over my lifetime. And, as always, the real question I have to ask myself is this: do I still BELIEVE in the company, it’s management, it’s product/services, and it’s continued ability to move forward and eventually become a viable, profitable entity? Yes or no? It’s that simple .. and that hard.
    For me, where Stellar Biotech is concerned, the answer is yes. And I’ll live with that. I still believe in the future of the company with at least equal conviction I had on day one. Everything that has happened so far has for the most part been what I expected to happen. All news is basically good news. The problem we face is that there is little hard news to work with. And what is to be had comes well after the fact anyway. It’s not as if we can listen in on board meetings and get some kind of advantage.
    Why this selloff? There are a couple good guesses in comments preceding mine for you to ponder. They have as much credibility as anything I can say because we’re all GUESSING. A big investor doing some profit taking? Maybe. Some bad news of which we are not yet aware is coming? Possibly. The stars are out of alignment and since this is a California-based operation, what the stars say determines the immediate reaction of all stocks centered in La-La Land? That might be the best guess. The point is, we can conjecture all we want and post all the feel-good forward-looking statements we like, but none of it can yet be confirmed or verified. So I go back to the original question: do you still BELIEVE?
    We will not see a headline in any newspaper Tuesday that says “GREEN LIGHT is ON for buying Stellar Biotech! Get ‘um while they are HOT!” I’ve observed how often people look for something like that – and it never comes. Likewise, a reverse headline saying “GET OUT!!!” hasn’t appeared either. So perusing all these chat rooms and other such critters is, to me, an interesting but barely helpful way to while away some time. They, too, are guessing. Samuel Yin and his associates aren’t sneaking in insider info on those sites, either. So there ya go. Back to that basic question: Do You BELIEVE?
    To show you how smart I am, Monday I placed an order to buy another 1000 shares at $1.50 limit, day. Really didn’t think it would be filled, but felt that if it happened I just might be catching that falling knife just as it hit the floor. Well, I got filled at $1.49. And cut myself in the process – that knife had further to fall as you know. You’d think that by now, 40+ years after making my first investment (The Dreyfus Fund circa 1972) I ‘d have learned that you DO NOT try to catch a knife on it’s way down. Let it hit the floor and bounce back up. Let that bounce up last a little while just to be sure it’s real (hopefully). Then buy. Give up some of what could have been yours if you were PERFECT in picking bottoms – which neither you nor I nor anyone on this blog is – and don’t sit around fretting about “missing” that bottom price. Just ask yourself: Do you still BELIEVE?
    So, see, I can’t tell you what a good entry point might be. Nobody can. It’s up to you to decide. I know that’s not the answer you hoped to hear from me but it’s the only honest one I can offer.
    I will tell you what I THINK might be a bottom price area though. It’s $1.05 or so. Why? That’s what Samuel Yin paid for his shares in the financing deal. He’s not likely to want to see a paper loss on those shares and COULD – I say COULD, not WILL – come in to provide some support for share price if it gets down toward those levels on its own. So, will it? Will it fall to $1.05 before a real bottom might form? I’m not gonna guess. I, like all of us, will just have to wait and watch and see what happens. And if it does, what do you think I’ll be asking myself? That’s right; I’ll be asking myself “DO I STILL BELIEVE?”
    And there is also the issue of the $1.35 warrant exercise price for the shares Mr. Yin could purchase over the next 3 years (as I understand the deal) for himself. Could that provide some sort of a “bottom support” for the share? It might, although time isn’t of the essence on those shares yet. Long way to go.
    What we have here is the entry once again of my long-time nemesis, the creature I just call “Mr. Market.”
    Have you ever met Mr. Market? Well, if not, let me introduce him to you. Because on Monday he entered your life in a big way, and he’s here to stay.
    Mr. Market is that entity which is composed of all the things that make equity prices move up and down. He is a summary of all the hopes and dreams, fears and greed, analysis and economics, politics and research, guesstimations and estimations, “WhoDoVooDo” charting and technical analysis, information and disinformation, human weaknesses and psychology, and anything/everything else you might think of as being a part of this stuff we call “investing.”
    Mr. Market stands just behind each and every investor, watching what we do with a smile on his face. He smiles because he KNOWS what we don’t want to recognize. He knows that no matter what our puny efforts are, he is in control of the overall game. Sometimes he lets us have our way. Sometimes, when in a foul mood, he crushes those efforts with no explanation or forewarning at all. We can only hope that what we do doesn’t come under his baleful glare and see his hand at work.
    And here is another thing about Mr. Market that most folks never accept: the valuation of our investment accounts, the gains and losses we see, they aren’t ours – they are HIS! We are technically correct in thinking the money belongs to us, but it really doesn’t. It belongs to him as long as you have it invested in equities and debt instruments. It’s a “feel good” thing to think that it is our money. But consider the following.
    Can you, on your own, cause a stock price to move up or down? No? Mr. Market can. Can you, on your own, change the sentiment of other investors toward your beloved holdings? No? Mr. Market can. Can you, on your own, move your net worth up or down at will? No? Mr. Market can. And he does, on a daily basis.
    Until you actually close out a position and take the profit (or loss) off the table and out of the game, it is not yet yours. It belongs to Mr. Market and he will play with it as he decides. But when you close it out, take the funds and put them “in the bank” so to speak, by which I mean somewhere away from the markets, it’s not yours yet. So looking at those P&L’s or statements and being just so happy with what you see is fleeting and not entirely real.
    If you have read my posts over the past several weeks you may recall that I made some sales and the re-purchases of SBOTF along the way. It might have appeared to be a foolish move at times. More often than not I sold at a price lower than I had to pay to get back in. But that profit I made on those sales didn’t go back into the shares. It went to my “bank”, a safe haven to preserve it until I need/want to use it for my own pleasure or necessity. That money is MINE – Mr. Market can’t touch it.
    To wrap up:
    No, KLH can’t be synthesized as far as we know. Statement have been made – though I haven’t seen any scientific reports to prove it – that it can’t be done. So let go of that concern for now.
    Is it possible management is manipulating the stock or lying to us about the company? I highly doubt that. Again I refer to the investment by Samuel Yin. Would he get involved in a company with that going on? And wouldn’t he, with his vast array of resources for information, know it if it were true? I’m betting on Yin to cover us from those possibilities, and betting he wouldn’t risk capital and personal reputation by being so involved. It’s just not all that much money to him to do that as far as we can tell.
    And is this a good time to add to positions or establish one? I ask you for the final time:
    “DO YOU BELIEVE?”
    Me, I believe. I may add to my position – already an outsized one relative to my assets – if I can get shares around $1.25. I hope I can. I hope I can’t. And I just heard Mr. Market laugh out loud at my plans. He already knows the outcome. I just hope he’s in a good mood today.
    Best of investing success to all!
    Jim Skelton
    “The Blind Squirrel”

    Like(0)

  71. :). Thank you Jim for reiterating the fundamentals. Greed usually obscures these principles. Had the sudden feeling that you had taken me personally under your wing! I have been following this stock from $0.9 till $2.2 and back but have not invested in it. The domain expertise is missing and information is too hazy. All said and done, I plan to jump in big and get drowned :)
    Regards

    Like(0)

  72. Nice comeback today–huge relief and a confirmation that despite the carnage of yesterday and the past week, this company holds a huge upside potential. There are always a lot of “market timers” who play with promising microcap stocks to attempt to make a quick buck and this makes for considerable volatility. Those with a weak stomach should not invest in any microcap, even one as promising as Stellar–it’s not worth having a stroke over! Those of us in it for the long haul need to do our best to ignore the swings–especially the big dips, which will be inevitable. If you have the capital and the stomach–you can take these as buying opportunities.
    Putting this into perspective–as I write this the current price is $1.50 which is 50% above the low it hit after the Private Placement. Although I was late to the game and added share at 1.49 just before the PP, my holdings are still up 15%–beating any other stock I own for the short period I have owned Stellar. I have a good feeling that before the end of the year it will be above $2–we will see.

    Like(0)

  73. Epilogue to this early mornings (Tuesday) comments
    by Jim Skelton, the Blind Squirrel
    What a difference a day – or at least half of one – makes! My purchase yesterday of another lot of 1000 shares at $1.49 isn’t looking so silly anymore. (I hope Mr. Market didn’t hear that!)
    Price just crossed $1.50. Reminds me of that old song from the ’80′s, “Afternoon Delight.” Remember those lyrics? “Sky rockets in flight, afternoon delight ..” This is looking like a sky rocket today, although of a very different kind to which that song was referring. At my age, I’ll take this kind :0).
    If we make $1.55 today I may very well go in for another 1000 shares. Remember what I said about the falling knife. Better to wait for the fall to stop and catch it on a small bounce in the other direction than get all bloody trying to catch it on the decline.
    Which leads me to another obvious but often overlooked fact of the market I’d comment on here. Dollar-cost averaging.
    The theory, according to all the Wall Street gurus I’ve ever run across, is that when you have a stock that you believe is being either unfairly punished by Mr. Market in general, or is suffering due to what will eventually prove to be a minor concern, you ought set parameters at which you buy more as the price falls, thereby creating a lower average cost for the share you own. When (?) the price recovers, you’ll be at a profit long before you would have been if you just bought once and held on for the ride.
    My question about that is always the same. It is “Really?”
    The flaw there is that an assumption is made – with confidence and authority, of course (my charts say it’s so, therefore it IS so!) – that the price will rebound to a level above the average you establish as your baseline. But what if it doesn’t? Anybody ever give thought to that? What will be the consequence then?
    You know the answer. You will have committed more money than you will wish you had to a losing proposition. You see – and here is the nugget that is NEVER mentioned – you can dollar-cost average yourself into oblivion if you do so WHILE THE STOCK IS FALLING. Now, if you do this WHILE THE STOCK IS RISING, that’s another thing entirely. You will be establishing a new cost basis that is higher, yes. But it will be at a level that is LOWER than the current price. Which means profit. Not as much as could be made if you dollar-cost on the way down, but that approach can send you straight to the bankruptcy court if you are wrong. You never go bankrupt increasing positions as they rise. So choose which way you want to go – average UP or average DOWN?
    Me, in honesty, I have done both over my lifetime. I’ve almost always wound up making money on positions that I bought into as they rose. A few times greed (and that pesky Mr. Market) got in the way and I overstayed my welcome. But applying that process as prices fell has been dicey at best. If it keeps falling, at some point we lose hope and sell. Or, as I have seen hundreds of times in past clients accounts, the investor lets the thing just crumble and fall, then holds the position because it isn’t worth anything anyway and they can trick themselves into believing that someday, somehow, it will revive itself and make them look like market savants. Rarely ever happens. Anybody familiar with Sirius Radio? Many still hold onto the once-upon-a-time darling and hope it may someday recover from the back-corner of the basement where it has sat for several years now. Think it’ll recover and make you rick because Howard Stern is part of that network? Are you “Sirius?”
    My point here is this, and it is relevant to Stellar Biotech stock: be very, very careful in using a “dollar-down” system. Wiser perhaps is a “dollar-up” approach.
    But what do I know. Just a Blind Squirrel here seeking an acorn without a worm hole in it.
    Is Stellar that good, firm, ripe acorn? Do I BELIEVE?
    Yes .. I do.
    Best of investing fortune to all the Gumshoe Nation!
    Jim Skelton
    The Blind Squirrel

    Like(0)

    • Hi Jim,
      really do love your perspective in life as well as in trading. Your comments always give me a chuckle and i appreciate the well meant advice you give me and others. Can’t think of anyone who would feel otherwise ;-) Imagine your little blog got close to 160 responses about now, and we hardly at the end of this story. I am holding on to Stellar because I believe they have what it takes to make it big time. ‘Up the limpets’!!!
      Do not have as much time available to check out all the stocks offered by Travis, Myron and others. Yes i am kind of new to this kind of trading etc.. Learning as I am going along from you and others and I am grateful to Gummi, Myron, The Blind Squirrel, and many others who post their comments on this site. Keep up the great postings Jim and know not everyone can answer your musings, but lots of us love to hear from the Blind Squirrel again and again

      Like(0)

  74. This is kinda like a SBOTF support group. you know sometimes when you own a microcap and the stock price is wiggling around like a mad snake, and you don’t know what’s going on behind the scenes, and you feel like you’re the only sucker who don’t know what’s up! And you’re gonna be the guy left holding the bag. It feels good to come here and read these posts. Everyone for a big hug!

    Like(0)

  75. I took the dip as a buying opportunity placed two limit orders .10 apart both low end, and stayed away form the computer. My low liimit did not hit but I am happy to add shares at the higher. I am glad that the profit takers and skiddish sellers made it possible to add shares below 1.40 . I believe in this company and do not feel the need to question why the stock dips and rebounds ( Stellar is after all a Penny stock). I would like see a dip down to 1.20 to meet my last limit. I still have my .63 shares and plan on holding and buying, buying, buying. I will not hold positions that cause me to loose sleep, and require me to stock sit.
    This works well for me , but then we all have our own ways of investing. Best of luck all ,
    off to Vegas for a week.

    Like(0)

  76. To AH;
    I hope that neither you or anyone reading these musing I post think I am talking down to them when I get into what I think of as investing fundamentals 101. Believe it or not, a lot of people that might seem to be otherwise have never learned those basic doctrines. And I suspect that there are quite a few less seasoned eyes on these pages that never post anything or reveal their presence. So I throw them out just as a reminder to everyone and as a lesson for those who haven’t really learned it yet. But do I think for even a moment I am somehow “superior” to others? Hardly.
    This kind of thing comes naturally to me for better or worse. I began my adult working life as a economics instructor for 12th graders at my old high school. Later on, after getting into the investment advisory business, that “teaching” role was greatly expanded. I spent a lot of time every day explaining how things work to prospects and clients. And when I became involved in the management program at PaineWebber, I was assigned duty as a mentor/instructor for newly minted brokers with 5 years or less time on the job (LOS). This involved a ton of instruction, lecture, and teaching, formal and informal, on all sorts of subjects related to becoming a successful broker. I was also assigned as the office Mutual Fund coordinator and the Insurance/Estate Planning coordinator. This role put me in charge of meetings and such with product wholesalers and all office brokers of all levels and assisting them as best I could in finding products to solve client problems or create new opportunities. So the process stuck. And I can’t seem to shed it, nor the approaches I used back then. If it seems I am lecturing to the uninformed, forgive me. It’s just what I do.
    As to taking you under my wing as you said, well, I’m not sure what you’d find under there. Living alone and let to my own man-devices, I don’t shower each and every day if I get caught up in al this stuff we do here. So beware the undersides of parts of me! :0)
    Seriously, if you ever want my opinion on anything, just ask. As you have no doubt noticed, I am not at all shy about giving out advice. What that advice may be worth is another question. But I promise I always try to be totally honest in what I say and present only the best of what I have learned over the years. If it’s useful to anyone, great. if not, well, I tried.
    Today (Tuesday) was a sleigh ride with SBOTF for sure. I did what I said I might, I averaged UP when the price rebounded to around $1.55. But I only took down 500 shares this time – the well of money I’m using to support this adventure is drying up and I want to be able to act on a situation if it arises without having to sell something I like to get more of this. But I got those at $1,565, so I’m happy. Now if Mr. Market will just get out of our way and let this happen as we all dream it will, we’ll make that $2.00 level again. And you can bet, at that point, I’ll take some of the profit away from Mr. Market and make it mine.
    Then repeat. And repeat again – with a little luck and staying awake during market hours it could happen. I am at my best between midnight and 6:00 AM most days – or should I say nights. The mid-day drowsies catch up to me due to those all nighters I pull. This ain’t college anymore and my bod just can’t take the constant sleep depravation.
    Best of investing fortune to all the Gumshoe Nation. Limpet ON!!
    Jim Skelton
    The Blind Squirrel
    PS – Didn’t ANYTHING from the VIC resonate with anyone of us? Travis put in a lot of effort and sent out some great reports on what he heard and saw while there. But I haven’t seen a single word, not one micro-blog comment from anyone on any of it. What about China Wireless (CHWTF – see Travis’ VIC Day 1 notes), the cell phone mfgr that has financial ties to (yep) more Taiwanese biggies? Only pure play on cell phones in China. They have a few people over there that like cell phones and can afford them. Priced around $0.43 a share, with a real product and little competition, sold by all three of the major service providers, an inexpensive pricing structure to keep the phones affordable, well-liked by consumers, profitable, and well-backed financially, A large float of 2,108,685,000 shares, but trades thinly with a 90 day average volume of just 34,784. Something happened in Sept. of 2012 that caused a spike in buying to jump to near 1.5 million shares that month – and the stock price began an ascent that looks a lot like SBOTF in a way going from $0.14 to a high of $0.49 in late May of 2013, then dropping back to about $0.30, then a bounce back to the $0.49 yearly high, and now back to $0.39 bid – $0.43 ask. what’s not to like – other than the near 10% bid-ask spread? Anybody want to pick that up and run with it? Start a new Micro Blog like this one? If so, do it. I’m in!
    Disclosure: I am long 4000 shares China Wireless Technologies LTD (CHWTF) at $0.43.
    Be advised: you may encounter minimum purchase quantity restrictions. I had to place an order with minimum size of 4000 shares.

    Like(0)

  77. Jim, I appreciate your comments and I wouldn’t mind if you hammer at me these lessons every day! In the mad rush, we(i at the least) tend to overlook the fundamentals and i feel your outright honesty (please be that way) puts to rest my doubt of ulterior motive. I have opened a decent position at $1.5 and will add if it falls due to Mr. Market and not otherwise (negative results, etc). Once again thank you and please do shower. It is stuffy down here..

    Like(0)

  78. Welcome to our little club, Brad. In only 6 weeks I’ve learned that This is the place to be if you own SBOTF! (Or are thinking about it). I have really enjoyed reading the different perspectives, and learning from the insights of others on this blog. Really helped me with the need for affirmation when Wondering if I was “the only one who thinks ….” And wondering if I was getting excited too fast. Turned out I was very “late to the party” re: ownership; you and most others were involved long before I’d even heard of Stellar. We’re pretty much an “all for one and one for all” group, so I suppose most of us would give in to a group hug (at least after Jim has had a shower:). JB

    Like(0)

  79. I just sold all Stellar for now as the trend of the past two weeks seems terribly bearish. I will get back in when this trend begins to reverse. I sold with a small profit so the tax consequences should not be great. I’m not sure what has been going on to fuel this trend but I don’t see a near term end in sight and don’t want to risk losing my principal. I’m keeping the cash on the sidelines and I’ll buy Stellar with it again once this carnage seems to be ending. I may have just made a huge mistake as market timing isn’t my thing, but given that the stock is still up over 400% for the year, the pull back could be considerable–I hope not for all of you who are riding out this storm. Microcaps do tend to be more adversely affected by downtrends in the broader market and this current Washington nonsense is certainly not helping the stock.

    Like(0)

  80. Hey guys, is anyone out there? Eleven days since a post? This is the hard part, right? Sticking with it through ups, downs, and sideways? Anyone have any news or insight that the group could benefit from? I think that the addition of Stellar to the S&P/TSV Venture Index is a positive thing, no? Would love to hear from anyone!
    JB

    Like(0)

  81. Hi Jana, yes this is the hard part. The waiting game – waiting for the right wave to come in so we can surf our way to prosperity (or at the least some cash advancement).
    Hang in there, it may not have much movement until mid next year, and thus, why stocks are always a ‘long’ proposition. Unless, of course, you like to day trade or as I sometimes do, week trade, but this action is for those who sit and stare at graphs and stock tickers all day long. (which is for sure not me)

    Like(0)

  82. Hey Jana ..
    Yeah, still out here. Have almost posted up something or another several times over the past two weeks but then realized there isn’t really anything constructive to say. Sometime back in Early to mid September I wrote a post in which I said “the easy money has been made.” I stick by that assertion. As you and all others have undoubtedly noticed, we seem to have established a trading range of sorts of $1.40 to $1.60, give or take. I believe it will take some rather large announcement from the Company to move us off that mark. Something new, something solid. What that could be at this stage I have no idea.
    Last evening I got a notice from Paul Reyes, CEO, about a news story that had been written about Stellar. I assume all of you are connected to the Company investor relations department and get those messages automatically, right? If not, for goodness sake, get hooked up and plugged in. Anyway, it was a nice story, very positive, very informative for anyone who hasn’t yet discovered the “Magic Molecule” story. I thought maybe it could give a little upside push today if and when new investors might become interested. But as you can see, with SBOTF now down about $0.05 as I type, nothing of the sort has happened. So the wait continues. And the trading range persists.
    I sorta hesitite to write what comes next but I’m gonna do it anyway. I don’t want to get this thread off the track and onto a very different subject, but what the hell .. nothing else going on.
    Last week, being they type to get easily bored when the action slows, and looking for something I might make a dime or two on while we all wait on these idiots we keep electing to represent us in Washington to resolve the Gov shutdown issues and the upcoming debt limit, I started poking around into some critters I knew existed but had never used in my portfolios. I’m talking about Inverse Index ETF’s. Very high risk, very high potential return. Just my cup of tea if I get bored.
    You might check out one in particular, symbol UVXY. It’s a really esoteric invention, an “index” of basically perceptions. Yep, perceptions and anticipation and market sentiment. Nothing even solid. Start by going to Wikipedia and look up Inverse Index ETF’s. Read all you can. Then research. See if you think these thongs might be something of interest. Just beware; they move fast and hard based on those perceptions of where the market may be going in the next 30 days. That’s all I’ll say. I’m NOT recommending these for anyone. But sure are fun to follow and if you dare, try to make a few bucks while we wait out Stellar.
    Best of Investing to all!
    Jim Skelton
    The Blind Squirrel

    Like(0)

  83. Hi All,

    Glad I found a support group. :-) I have bought in in a big way, first at 1.79 (the drop to 1.30 was gut wrenching) and added to cost down to about 1.71. However, everything I have perused through on the web and their website makes me believe this company is a real gem. I seem to recall that they are presenting at a conference in about a week, but I can’t seem to find that information now. Can anyone confirm that? If they make a breakthrough on a c. diff. vaccine, huge potential there alone. This is the only place I have seen a substantive discussion on Stellar.

    Like(0)

  84. My comments from August 27th still apply…the roller coaster ride will continue. There is support at these levels and we won’t see much action unless there is very good news or the market makers decide to give it another run prior to a news release. We’re here long term so I’m not too concerned about the day to day.

    Like(0)

  85. Hi ya’ll. Just checking in, no changes, no panic. This is the 6th time I have tried to post. At some point I have inadvertently hit or touched something on the keyboard of my Dell XPS that completely wipes out my post and I have to start over. I wish to God someone could tell me what I’m doing wrong. Luckily for you, my precious allegory comparing investing in Stellar to baking a loaf of bead is MIA, and I’ll just say bye for now. JB

    Like(0)

  86. FYI: That Inverse ETF, UVXY, that I mentioned yesterday was up 12.25% or $4.06 in today’s action. The failure of Congress to reach a deal on anything pushed sentiment quite negative for what may be happening in the markets 30 days out. Personally, not being able to (ever) hit exact lows and highs in my buy/sell trades, I made about 7%. In a day. I’m still holding so I might lose that and more tomorrow if a deal is reached on the debt ceiling. I have little faith it will, though. We’ll see.
    Do you like Biotech companies such as Stellar in general? If so, here’s another idea to consider and how to get a good research report on it. The company is Acadia Pharmaceuticals, symbol ACAD. Current price $23.13, 52 week range of $1.80 to about $29.50. They have developed a specific anti-psychotic drug to treat people with Parkinsons, Alzheimers, and a host of other mental illnesses that result in psychosis and depression. It has gone through most FA trials, has blown past those obstacles mainly because the trials indicate almost zero side effects (the worst being occasional headaches), and are nearing full clearance to start production and sales. The medical community is eagerly awaiting release for use in indicated applications as well as many off-label uses.
    Get this: using very conserative numbers, the analyst I found who has done exhaustive work on the company and the drug in question – called Pimavanserin, or just “Pima” for short – totally believes it can generate a MINIMUM of $10 BILLION in sales. Actually, his numbers call for more like $20 BILLION, but he is trying not to over-hype the thing. This is NOT a “Tease” as we are accustomed to finding here on Stock Gumshoe. It is NOT “Tulip Bulbs” as I questioned when I opened this blog on Stellar. Very real company. Very real drug. Very real explosive potential.
    To read the report – written by Brian Nichols, do the following:
    Go to the website of http://www.seekingalpha.com
    Scroll down the list of reports until you see one entitled “Pimavanserin: The Most Underestimated Blockbuster in Biotechnology” by Brian Williams.
    Click on that and read what he has to say. he writes in a very open and user-friendly manner. You don’t need a Nobel-level biotechnology degree to follow his reasoning and story.
    That’s all I’ll say. read, learn, decide for yourself. Give you something to do while we wait out this lull in Stellar prices. DISCLOSURE: I Intend to establish an initial position in Acadia Pharmaceuticals within the course of the next 3 days. Might this blind squirrel have run across another acorn? :0)
    Best of Investing to the Gumshoe nation!
    Jim Skelton
    The Blind Squirrel

    Like(0)

  87. Well Jim, you may have found another one. It has had a great run, but probably plenty to go. Nice couple of days on Stellar… Got a question for you or anyone else who may have done this. I ran some back of the envelope numbers and came up with anywhere from $22 to about $50 per share in 3-5 years. Here is how I came up with it (feel free to critique/add to this…) Using Stellar’s estimated yearly revenue (where there was a range I took the low end.) They estimate about 620mm per year / 70 mm shares = $8.85 per share gross revenue. Assuming we don’t get massively diluted. I have a problem determining expenses, but some large pharmas have about 25% net profit per share. I would assume at least that, and maybe more since Stellar is a small company (fewer employees, sales staff, etc.) IF (correct me here) their expenses are 50% gross revenue, then $4.42 net revenue per share X 10pe (avg. biotech pe) = $44 per share. At 25% it should be about $22 per share. Where did I go wrong there? (I am clearly not an analyst, and my first attempt to prognosticate.) Thanks for any feedback anyone can offer.

    Like(0)

  88. Jim, I believe its Brian Nichols and not Brian Williams who authored the “Pimavanserin” story.

    Just in case some people had issue finding it.

    Thanks for your interesting points of view everyone. I enjoy this site very much.

    Like(0)

  89. Hello Jim,
    Thank you for the ACAD note. I have been trying to look up the latest FDA reports or news on this but have not found anything. They have eschewed final Phase 3 trials and have gone directly to FDA approval. So please could you let me know if you have anything on
    a.) What is the current status of the drug with respect to FDA approval? What is the likelihood of approval by FDA?
    b.) When will the approval (if provided) by FDA come through?
    c.) In the trials: the delusion score dropped by 5.79 points using Pima while scores for placebo patients only dropped 2.73 points. Could anybody throw light on this? and if this drug is extremely beneficial to patients that it would force doctors everywhere to recommend this or is it just another pill (addition to Risperdal, Zyprexa, Abilify) with little side effect?
    d.) Not so sure about the pricing stats though. It is mentioned that it will command premium pricing ($1000 per month!). Per year = $12000 for just one pill! That is a lot of money for just one pill. Not sure if the patients (i sure as cant!) can afford for just one pill considering they have a whole of pills and other expenses (i feel for them).
    I also came across a comment (by JJ PositionTrade) which seems to support this fact and make sense
    “Zyprexa, Abilify, Risperdal, etc. are highly potent drugs to treat schizophrenia, a far more debilitating disease than Parkinson’s or Alzheimer’s psychosis. I’m not belittling those who have it, but you need much more power than what pimavanserin offers to treat schizophrenia alone. They will not get $1000/mo for this drug to treat Parkinson’s psychosis. It is treated now with low doses of Seroquel for very little per month, so why would any insurer add $12000/yr to the bill of a Parkinson’s pt who is already paying $20K to $30K per year for their current PD meds and other diseases? Making comparisons to Parkinson’s psychosis and schizophrenia in your pricing models is a huge mistake. These are two completely different diseases”
    Another comment ” Pimvanserin has shown that it works pretty well in Parkinson’s related psychosis. To extrapolate this result to other forms of psychosis is a big jump. Psychosis is a syndrome; and like all syndromes they tend to have some similar features but mechanisms may be quite different.”
    My Take: From the above comments + LET me remind you that markets outside US are extremely different and very few can afford this costly pill (For $12k one can get a full time nurse to take care of AZ, PK patient for a whole year). So if this is true, the evaluation drops by atleast 50%
    Sorry, if i am copy pasting other users’ comments but these seem to be significant comments. Also, my knowledge is limited to reading reports and comments. I am not involved in the pharmaceutical industry.
    So considering all this, doesn’t the current stock price reflect all the uptake + there is the additional huge risk of FDA approval.??

    Will: Thank you for your numbers but $600 million sales is a bit too high. I had estimated $300 million and also you are missing out on debt and R&D expenses (which i think is significant say 25%). But from my analysis i had an estimate of $10 per share if they were able to generate enough sales of KLH and if (BIG IF) a blockbuster vaccine using KLH is developed (most of them are in Stage 1 and 2) :(. Long way off..
    Thank you,
    AH

    Like(0)

    • Good news from the company regarding promising preclincal tests with lab mice to the C difficile vaccine. Stellar will be presenting this week at a big C. Diff. Conference so good timing with the initial results. The stock has been trending up nicely lately and this news should add support. I’m expecting $2 a share or more by year’s end (sustainable, not just a one day blip $2 plus). There are still miles to go even re. this first vaccine, but the ride is certainly enjoyable! The weekly gyrations of the market can be unsettling, but the upside potential of this company remains very solid. KLH shows tremendous promise in a broad range of treatments. The talking heads on CNBC, Bloomberg and various stock services wont touch this stock until it hits close to $10 so enjoy the profits as you have gotten in close to the ground floor even if you just get in today!

      Like(0)

    • Thanks for the reply AH. I used the lower range of numbers that Stellar estimated (in their investor presentation) as yearly revenue. (Though, to your point, underestimating that by half is probably prudent.) Could you clarify your statement on expenses? I used 25% of gross revenue as net profit, meaning 75% expense ratio (Amgens latest quarterly announcement was about there.) This is where the $22/share figure comes from. Do you mean 25% of revenue is the debt and R&D expenses? Also Celldex is currently in phase 3 trials for Glioblastoma and OBI looks like they are enrolling for phase 3 for breast cancer. But you are right, most are in phase I/II… If your expense numbers are the same as mine (on the 75% of gross revenue) and I cut my estimate to 300mm then our numbers are essentially the same at about $10-$11/share.

      Like(0)

  90. Stellar Biotch remains stellar–above $1.90 and still rising, another pleasant surprise. I had expected $2 by year’s end but once again it’s beating my estimates. Jim and others who like small biotechs before the Street discovers them–I like CTIX over ACAD Jim. Cellceutix is only trading at $1.80 and has a very promising pipeline of four phase 1,2, 2/3 drugs plus many other compounds showing promise in pretrials. Their main focus is in hard to treat illnesses–espc. in oncology, dermatology and antibiotics. I haven’t bought yet but I’m strongly considering investing in CTIX.
    Other speculatives I do own are in the green energy area–Natcore (NTCXF) is a very promising solar tech company that has technologies that can make solar compete with other forms of energy even without government subsidies. The stock has been soaring even more than Stellar in recent days, perhaps due to China no longer as heavily subsidizing their solar industry. NTCXF is currently selling right around $1 per share.
    Clearsign Combustion (CLIR) has been around longer and sells for about $7.40 a share. It is also an “energy technology” company that has technology that can make any flame based energy dramatically more efficient and dramatically less polluting. If their claims are even close to being true, the coal industry and oil and gas refiners (among others) could really benefit from their technology. This stock hasn’t been a great performer in recent months but is up 40% for the year and it certainly has a big upside. I like all four of these microcaps as, in my mind, they have tremendous upsides with proven technologies or very promising drugs/compounds. While there are certainly big risks in any microcap–I don’t see as much risk in any of these companies as I do in many other microcaps since they all have very useful products and/or technologies that should make considerable money as they benefit society. That’s a nice combination. Stellar is by far my biggest holding but I lke the other three quite a bit as well.

    Like(0)

  91. Thanks for all the tips. A few months ago my mom was diagnosed with an aggressive cancer and I came across the keyhole limpets research. I then looked for analysts interested which led me here. I picked this stock up at $1.25 a while back and then added more at $1.55 after doing research and following the ups and downs. Sadly my mom passed after a valiant effort. I hope one day these limpets help others. I am a very rational/cautious investor and have never bought a penny stock until now. Their story is inspiring. I know my mom’s illness made me more emotional but felt why not. I usually hold long and don’t worry about my account. Strangely this little stock gets me up each day to see how it’s doing. One day at a time. Thanks Jim aka blind squirrel for your analysis and belief in this stock. I’m a fan of yours and stock gumshoe now here in Austin.

    Like(0)

  92. Stellar’s knocking on the $2 door at the close today and the trend continues steadily up. A skeptic might point to the euphoria in 2010 when the stock opened and went from about .25 to $1.50 in late Dec. and then spent the next two years steadily backtracking to about .40. I would argue that the 2013 rally is much different as now there is a lot more scientific evidence, there are now at least 2 billionaire investors with strong positions, a Taiwanese Biotech Company linked in and a promising C Diff. vaccine in development. There will still be volatility, but hopefully a lot less than right around the Private Placement. Market timers will still try to benefit from the swings and manipulate the price when they can. My hunch is that this will lessen with the stock price now in the $2 range.
    Happy investing giant keyhole limpet lovers.

    Like(0)

  93. Stellar Biotech (SBOTF) remains a great long term investment Tom. It’s price seems to have paused in the 1.85-1.99 range of late as there hasn’t been significant price moving news after the announcement that the pretrails for the C Difficile Vaccine look very good. They just had a management announcement today but I don’t see that as making much difference in stock movement. It does look like the company continues to position itself for significant growth which is promising. Stellar appears to have excellent scientists and excellent management for a microcap along with very impressive vaccination possibilities for KLH in the future. These things make this tiny company one to watch for years to come.

    Like(0)

  94. Stellar Biotechnologies has held up well in a rough two month period for many biotech stocks. This bodes well for our favorite microcap biotech company : ) Once the sector warms up, I expect Stellar to easily reach $2 and any partnerships or other good news coming in will mean another significant rise in the stock price. Hang in there limpet land!

    Like(0)

  95. Greetings once again to the Gumshoe Nation in general and Stellar Biotechnologies c0-conspirators in particular! Jim Skelton here, your resident Blind Squirrel investor once again, weighing in on recent developments – or perhaps I might say lack thereof – at Stellar Bio. This little Blog I began back in, what was it? – July perhaps? – has gone dark for the past few weeks. That’s understandable what with there being little to discuss other than small changes in price and volume in the stock.
    That changed a bit when Travis mentioned in the latest Friday File that our old friend, Nick Hodge, had re-re-re-released his tease featuring Stellar Bio. I was wondering when he’d go back to that well to try and drum up business for his newsletter. It’s been far too good a recommendation for him to walk away from, and I suspect he’ll keep on beating that drum form many months to come. And that’s a good thing. You can’t get too much investor awareness of the company and what it has going for it at this point. So, thanks again Nick, for bringing this great little company to our attention in the first place, and for keeping it out front in your promotions. With Stellar, you actually did hit a home run that has benefited all of us who drank the Kool-Aid and became true believers.
    I don’t know when exactly this re-release happened and whether or not it contained any new info. He MUST have had to make some changes to the previous teases if for no other reason than to update the pricing he refers to in the dialogue. The original tease referred to a stock price of about $0.63, and that was way out of line with reality when the previous release was done back around August or so. If there are any other corrections / additions I’d like to know. So, you Super Sleuths of Stellarville, if you can post up a link to this most recent tease for viewing I – and I’m sure others – would appreciate it. That’s what we’re here for, right? To help and assist all stakeholders or potential stakeholders in understanding the Company better and get a clear grasp of the facts vs. the conjecture.
    I’m hoping that Nick will prove himself to be not just “Nick” this time, but perhaps “St. Nick” and give us an early Christmas present in the form of providing new blood into the mix here and helping push the price out of this stubborn trading range of about $1.80 – $2.00 we’ve become mired in for the past few weeks. Those of us who have been here awhile, especially from early July to the present, have become accustomed to a wild and exciting ride where it was “normal” to see DAILY price swings of 10% – 20%. Now that that kind of thing has subsided for now, it can lead to a little boredom for those of us who thrive on the action. Thus the “going dark” I referenced in the opening of this comment. Like the LEO’s at a crime scene say, “Move on folks, nothing to see here.”
    Now. that statement provides a near-perfect segue to this next commentary.
    If you have been reading my posts here you will know that (1) I sometimes will move away from a buy-and-hold approach to a trading stance on a stock. I tend to get a little antsy if a fast mover slows down and I can’t see an obvious and imminent price-driver coming soon. I don’t allow myself to become married or emotionally attached to a stock. If I think I can carve out $0.10 or so on a position of maybe 10,000 shares and then buy back later at a lower price, I’ll do it in a heartbeat. You know how much I believe in taking profit out of the hands of that mythical entity I call “Mr. Market” and making it truly mine to use as I please. And you know that I am not anchored to the idea that, in order to re-enter a position, I MUST be able to buy back at a price LOWER than that at which I sold. If I sell all or part of a position, I then look at it with fresh eyes just as if I was seeing the opportunity for the very first time and making a buy decision based on that perspective. I WILL NOT sit and watch a good company run away from me just because I happen to have sold it lower. In my carrer as a Financial Advisor I watch helplessly as dozens and dozens of clients lost opportunity by adhering to a belief – rooted in unjustified pride – that they could only own a stock again if they could buy back more cheaply than they had sold at. A fools game, that is.
    So here’s an update on what I’ve done recently as it relates to SBOTF. I relate it not to brag but just to keep myself honest.
    Having watched the price of Stellar bounce between $1.75 and $2.00 (approx.) for a couple days previous, and not taking advantage of those swings, on Nov. 24 – 25 I sold ALL holdings. 82% of the stock was sold on the 24th at $1.85 p/s. the remaining 18% was sold on the 25th at $1.74. My average weighted sales price worked out to be $1.805 p/s. I hoped I would be able to repurchase later at or below $1.75 p/s. I’m still waiting on that but it appears the price of $1.80 has become pretty solid. I’ve gone in with limit orders to buy twice in the past three days. I was looking for $1.78 the first time and then $1.80 the second. Neither got filled, missing out by $0.013 on the first order and then only $0.005 yesterday. So close, so far. I’ll keep trying. But if the price moves above $1.90 and stays there for at least three consecutive days, I’ll reconsider and reload.
    Meanwhile, the cash has not been idle. There are ALWAYS other fish to fry, or Limpets to bleed so to speak.
    On Nov. 28 I bought:
    Mason Graphite (MGPAF) @ $0.28 p/s. It closed yesterday @ $0.38, a gain of 29%
    Nutranomics (NNRX) @ $0.61 p/s. It closed yesterday @0.59, a loss of (7%)
    Organovo (ONVO) @$9.97 p/s. It closed yesterday at 12.74, a gain of 28%
    US Rare Earths (UREE) @ $2.67 p/s. It closed yesterday @ $2.65, a loss of (0.5%)

    So, while I wait on SBOTF to demonstrate a propensity for meaningful movement, up or down, I’ve not done badly with the cash. That is a very risky way to play this game, of course, and ought not be used by anyone who hasn’t the ability to sustain without financial disaster a substantial loss of capital. Tread lightly here.
    And just so you know that all is not perfection in the Land of Blind Squirrels, I took a loss of some 34% by selling an ill-fated position I had in Acasti Pharma (ACST) yesterday. Had bought it @ $2.46, watched as it dwindled, let my usual cut off point of 25% pass right on by, and sold at $1.63. You win some, you lose some, you move on.
    Enough of that. I am watching SBOTF carefully and WILL be long again in due course. It remains a great Company with a bright future and huge potential for growth. For those readers here that may have just entered a position in the Company or are considering doing so, take great heart. Stellar Bio has been and will be, in my opinion, a portfolio holding that will warm the cockles of your heart (what are “cockles” anyway?) in due course. Just DO IT!!
    Regards’ Jim Skelton
    The Blind Squirrel
    “Even a Blind Squirrel finds an acorn every now and then”
    DISCLOSURE: I am long MGPAF, NNRX, ONVO, and UREE. I may purchase shares of SBOTF at any time

    Like(0)

  96. EPILOGUE TO A CRAZY DAY
    by Jim Skelton
    The Blind Squirrel
    Hello again Fellow Gumshoers and fans of Giant Keyhole Limpets everywhere. The trading day is done for some 2+ hours now and I’m finished cleaning up the debris and counting my beans from the days activity. It ain’t pretty.
    I had little more than posted the above comments this AM when the markets opened and things started going South in a rush. Almost across the board, the micro cap and technology stocks were taking hits right and left with no supporting news to use in order to make sense of it. Of particular note to me was, of course, SBOTF and also one of the four other stocks I mentioned, Organovo (ONVO).
    ONVO, which as I said I had made about 27% on in just 4 days, was dropping like a stone. From its open at $12.28 it began a plunge like an Olympic diver off the high platform. By 11:00 AM I had seen enough. With about a 7% gain remaining in the position I sold and got out at $10.59. Organovo closed at $9.60, down 25% on the day. It actually traded as low as ~ 8.80 in mid-afternoon.
    I don’t have any idea yet as to why the big hit. Just profit taking I assume. Trees don’t grow to the sky. And besides, I made a little money on the fast trade, so who’s to complain. I’ll watch it to see if a rebound starts and may well re-enter the position. It’s still an exciting company with, I believe, a bright future.
    Then there is Stellar.
    I told you I had missed getting filled on a couple orders Monday by just a fraction of a cent or so. That was a fortunate event – I’d rather be lucky than good any day, as they say. I almost entered a limit buy at $1.79 just after 10:00 AM but didn’t. Shortly thereafter SBOTF began to claw its way back above the $1.80 “floor” and hit about $1.82 by 11:30 AM. I thought at the time I had missed my chance once again. Little did I know – I’m a blind squirrel, remember?
    From there the decline resumed and by 1:30 PM we had an ask of $1.755. I couldn’t resist any longer. I put in a limit order to buy at $1.75 for 2000 shares and got an immediate fill. Happy Days! Scary Days!
    The happiness with $1.75 was short-lived. After staying flat at $1.75 for about 45 minutes, at 2:15 PM the decline resumed. And by and large remained in that trend for the rest of the day, trading as low as $1.66 around 3:30 PM, then recovering a bit to close at $1.70. On a volume of almost 500,000 shares, double recent daily volume levels. And my system is showing an aftermarket pricing of $1.66 bid, $1.73 ask. Huge spread indicating nobody knows which way this ball may bounce tomorrow.
    As for me, I’m not entirely unhappy with the $1.75 price. As for the 2000 shares, that represents 20% of the position size I want to have restored in my Special Situations account before I let this thing just sit and cook. If I can get 10,000 shares with an average cost of, say $1.70 p/s and see it make $2.50 in the next 2 years or less, well, that’s a handsome return. It’s not the returns we were seeing six months ago, but still very good. We’re all spoiled, you know? Spoiled rotten, thinking that 100% a year is a Ho-Hum investment. We’re SUPPOSED to be happy with a 10% – 12% average annual rate of return in the market, remember? Lets try to put some perspective on this.
    Now I gotta go and start reading some of the after-action reports from fellow Seeking Alpha contributors and other sources to see if any sense can be made of it all. Carl Icahn said today that he thinks a major sell off across all markets could happen anytime. Thanks for the specific and insightful input, Carl. That’s a real help. Sheesh .. even the big dogs don’t know what to do. Which leaves you and me scratching our keesters and hoping for the best ..
    Until Later,
    Jim Skelton
    The Blind Squirrel
    DISCLOSURE: I AM LONG STELLAR BIOTECH (SBOTF) AND MAY ADD TO THIS POSITION AT ANY TIME.

    Like(0)

  97. Hey Jim,
    Your notes make for quite a reading! SBOTF seems to be in a decline and has reached the 1.50 mark. But still hopeful for it in the long run. NASDAQ , DOW all seem to be going up except the stocks i own :) Did you get into ACAD? I have been watching it for a while but have not made an entry into it.
    Cheers,
    AH

    Like(0)

  98. Apparently many SBOTF warrants have been exercised recently and this has diluted the market share. Also, many microcaps have been punished in the past several days. My favorite other two micros–Natcore and ClearSign have also had a very rough week. Hang in there folks, big swings are par for the course with the tiny companies. Buy low Sell high–not the other way around folks! If you have confidence in the long term prospects of a company, don’t panic.

    Like(0)

  99. “These are the times that try mens souls”
    by Jim Skelton
    The Blind Squirrel

    I must admit it .. I had somewhat hoped, even expected, SBOTF might consolidate a bit and pull back into the $1.65 – $1,70 area. The proof of that was shown when I posted a few days back about having closed out all my position at prices from $1.85 to $1.75. That was done with the thought I’d buy back in at $1.80 or less. But not less than $1.60. That number just wasn’t in my thoughts.
    So yesterday I got the chance – bought 2000 shares at $1.75 and was happy with that for maybe 2 hours. Then the decline continued through the end of the day. This morning at 9:45 AM I bought another 1000 shares at a hair under $1.65. That, I felt, was going to be the end of it. But no .. it wasn’t.
    As I write the bid is at $1.56, Ask $1.57, and volume approaching 400,000 shares. At least the spread has closed which, although far from any sort of guarantee, sometimes indicated an order balance that stops slides or ends run ups.
    In just a few minutes I’m going to go in with a limit order to buy another 2000 shares at $1.56. That, if filled, will give me 5000 shares, half the total number I want to own before I leave this this thing alone to work its way forward for the next 12 months or so. I won’t buy below $1.50 regardless. It’s unwise to try and catch a falling knife and I’m already bleeding a bit from so doing over the past 24 hours.
    Ah, I am long ACAD. Bought a small amount at $23.62 not too long ago and am currently underwater by about 3.5% or so. I’m holding this company for long term returns – good outlook, I think.
    And David, I’m with you on Natcore (NTCXF). I really liked what I saw in it and bought a reasonable quantity at $0.78 not too long ago. This is one of those “wish I’d done more” stocks seeing as I am up 60% in a very short time. Kinda reminds me of the price action of SBOTF six months ago. Now, please God, don’t let anybody write a negative article about it!
    And am I ever glad I pulled the plug on ONVO when I was still profitable yesterday. It’s getting smacked hard today again. As you probably know, this is a result of a Seeking Alpha contributor who is short ONVO putting out an exhaustive and scathing report on the company which (he feels) demonstrates that the company is wildly overvalued and does not have nearly the prospects the market was assigning to it. And honestly, it makes sense. I was among the wild-eyed cretins who bought into it thinking they had a near lock on 3-D human tissue printing and was the only company that could provide the liver tissues for Phama R&D. Apparently it ain’t so, Joe. ONVO may well be worth more like $4.00 than $20.00. I won’t look back at that one, just be gone.
    Which begs a question: The SA site has been all abuzz since that report with a ton of people throwing mud at the author of the article. They are mad as hell that he, being short before publication, could then write such a destructive article, get it up on SA boards, then reap the profits as the stock tanked. I mean, these people (people who were long ONVO and making money hand over fist right up to time of publication) are PISSED and calling for his head! It is Muddy Waters vs. NQ Mobile redeaux.
    The questions then is why is a short writing an article bashing a company and then profiting any different from a long writing an article and then benefiting if the price goes up? Both had positions that would increase in value if market participants believe the premise they present and move the price in that direction.
    I don’t see the difference except that I am basically a “long” kinda guy and hate to see a company I own get whacked by some short-seller. Yes, I own NQ, but thankfully bought just a day AFTER release of the MW report. I have an average cost around $13.25 and believe NQ is all it claims to be and that MW will wind up being shown to have mislead investors. We’ll see. If that happens, should (or even can) NQ sue MW for slander of a sort? Can investors sue MW for their losses? Or is this just all part of the game we involve ourselves in? Questions, questions, questions.
    Now I go to check pricing of Stellar and make a buy or sit still awhile decision. Maybe I’ll just buy JCP instead …
    Regards to All,
    Jim Skelton
    The Blind Squirrel
    “Even a blind squirrel finds an acorn every now and then”
    DISCLOSURE: I AM LONG SBOTF, ACAD, NQ, and NTCFX and may buy or sell positions in any of them at any time. I HAVE NO POSITIONS IN JCP OR ANY PLANS TO BUY WITHIN THE NEXT 72 HOURS.

    Like(0)

  100. The Market treats the shorts as sleaze and backlash at them is acerbic. But i think in a balanced market both the longs and shorts have their own karma to do. IF a big IF in a fair and open market. Just a question. What is your thought process as to not buy SBOTF if it falls below 1.50? i was thinking of increasing my holding if it falls below 1.50. Granted that you should buy on the up and up (Jim’s fundamental 103), why not buy on the down IF we believe the company has long term potential. I have my eyes on ACAD, JCP and ANV. Both have fallen big time and atleast JCP appears to be bouncing back. Your thoughts on JCP and ANV if you have the time.
    Thank you.

    Like(0)

  101. “If you like it at $1.60, what’s wrong with $1.45?”
    by Jim Skelton
    The Blind Squirrel
    Hello AH – and anyone else paying attention. Thought I’d address AH’s question of my thought process of not buying below $1.50 if and when that might happen. Here’ s the deal.
    AH, there is no magic regarding the $1.50 price level. Since you’ve been reading my posts these past couple days you are aware that I was devoid of any stock by the middle of last week, having sold most at $1.85 and then the rest (about 20% or so) at $1.75 as the decline continued. I had an average sale price around $1.81 or and my hope was that I could reacquire the position around $1.70. For a few days it didn’t appear I was going to get that chance. Then the sell off began for no apparent reason that I can find. David mentions something about the exercise of warrants but I have no info on that. David, if you would, tell us how many were exercised, at what price, and how this would cause a decline of this magnitude in the price. Serious – i don’t get it.
    Anyway, when the decline got underway I began to phase back into the positions as I described earlier. At the open today I had bought back 3000 shares and watched as the price continued to drop. I considered whether or not to sit it out, but decided to stretch a bit. So I put in a limit day order for just 500 shares at $1.55 which at the time was almost $0.10 away from the bid. I simply didn’t have conviction that (1) $1.55 bid would be hit or (2) if it was, how much further it might fall. Turns out that by mid-afternoon I got a fill on those 500 shares and the price actually did continue to slip a bit more to $1.51.
    That’s where I stand right now – 3500 shares with an average cost of $1.69. I’m $0.18 per share underwater, some $630.00 or so. Not exactly how I had hoped for things to go.
    I’ve decided that enough is enough – for now. The $1.50 level was a floor support price just a few weeks back. I hope it holds now. But if it does not, and the price slips under that, I don’t know what a bottom might be. And I’m not going to put any more money in at this point until I see so stabilization and upside come into play. I’d rather pay $1.60 per share. That would still be reducing my cost and at the same time give me some feeling of reassurance that perhaps the worst was over. Continuing to chase the price lower here with no idea of when it might level out could prove to be a fools game.
    Now, for someone like you who hasn’t been buying this dip of late and is considering entering at a price below $1.50, fine. In retrospect I wish that were me. But I started back in (obviously) too soon and have already committed just over 1/3 of the funds I want to have in the stock. So I really can’t compare my thought process to that which you face. Right now I rather be you than me – but that’s said with the perfect clarity of 20/20 hindsight.
    I’m not worried about the position when I look with longer-term vision. Unless HARD news were to come out destroying all the things we’ve come to know and believe about the business madel, management, revenue and sales forecasts, product development, and overall outlook for Stellar, I won’t sell one single share of this at a loss. If it were to drop to that $1.05 level of such controversy a couple months back, well, I’d hate that but I’d still hold it. And when the price firms up – as I’m confident it will – and confidence is restored, I’ll start to add more to the position. I want 10,000 shares, which would be less than half what I first owned when this story began for me in June, but that was a CRAZY big position for me and my portfolio. It paid off, sure, but things were different then. Within the confines of my overall assets in my Special Situations account, 10,000 shares is plenty big.
    So, to sum up, buying below $1.50 is fine and I would do so if I hadn’t already committed to those first three purchases. But foe me, for now, I need to see some consolidation and positive moves to the upside.
    An Aside: I didn’t buy any JCP today and probably won’t. Not yet convinced they have truly made a turn around as needed. And the solar energy and 3-D spaces continue to get clobbered. I’m thinking of selling my position in DDD – I still have a profit of some 24%, down from about 42% three days ago. The company is fine and will do great – my opinion – over the coming few years. But it just might keep on sliding here and I HATE sitting idle and watching what were big gains go up in smoke. My “Frienemy”, Mr. Market, up to his old tricks, taking his cut of what I would like to be mine. Like I have said repeatedly – no gain you see on a statement is truly yours until you sell and realize it. The statement may indicate you’ve made $50,000, but the truth is you haven’t made a dime you can use for yourself as long as you own the position. Until then it belongs to Mr. Market to do with as he pleases. Man, I hate that guy!
    Also, noted that Stellar hired a new guy to run the PR/Investor Relations arena. Good thing – I hope he is proactive in giving out info and news to keep us all in the loop. Maybe get himself invited onto a couple of the financial shows at CNBC and Fox Business, etc. We could use the exposure an on-air interview would provide.
    Let’s all stay real, stay calm, and stay tuned .. much, much more to come in the story that is Stellar Biotech!
    Regards,
    Jim Skelton
    The Blind Squirrel
    “Even a blind squirrel finds an acorn every now and then”
    PS – where has everyone else that was all over this topic a few weeks ago gone? Lost interest? Sold and moved on? Tired of this Squirrels chatter? I – We – would love to hear from you – I’m pretty tired of hearing mostly from ME! :0)

    Like(0)

    • Regarding the warrants. I received them from the ‘ipo’, they expired on 11-14-2013 at a strike price of .71 a share. Although I wasn’t planning on selling a share of my holdings, I did sell enough to exercise 15,000 shares, bringing my total holdings in it to 75000 shares. The blind squirrel has me wondering if i’m sitting on too many shares, and I agree that no money is made until the position is sold, but at this point, i’m playing with the banks money, and look at this position as a possible home run that could make my retirement very comfortable. Although as Jim stated, something negative could happen with the company, that’s not what worries me. My biggest worry is the possibility of the overall market as a whole crashing before Stellar gets to take off. Devoid of that happening, i’m fairly confident that the company will succeed in the long run and reward its shareholders, and also believe it is will be a takeover target of a major pharmaceutical in fairly short order. Confident…. but I still have my fingers crossed….

      Like(0)

  102. I am still here, and I suspect most of the rest of the cast is still here. Today’s news about the new officer hired is the only thing I’ve heard in weeks. I think this is the part where we watch and wait and try to be patient for the $2.00 or so mark (correct me if I’m wrong). Or whatever is considered the next resistance level, while the price is bouncing around, reflecting everything except its intrinsic value…hoping those giant limpets are squeezing every last drop of hemocyanin they can spare, that the studies are moving in a positive direction, and we’ll hear something positive. And hoping they really do know what they’re doing :) I haven’t bought or sold anything since my first buy, given myself some piece of mind with a stop-limit order, and intend on riding the crest of this gravy wave, so to speak, into the golden sunset. Good luck to all of us!

    Like(0)

  103. “What a difference a day can make!”
    by Jim Skelton
    The Blind Squirrel
    OK then. The $1.50 support – “floor” if you will – I mentioned yesterday has held. Not only held but apparently acted as a trampoline to the price of Stellar. I just checked back in and SBOTF is trading up $0.14 at $1.64 – $1.65. I’m just $0.04 away from break-even on the three buys I made over the past three days. The day could prove interesting.
    But enough of that – it will do what it will do. I’d like to address the comment from Robert Vinciguerra posted above.
    Robert, I am very happy for you! I mean that. Through a combo of good intuition and perhaps a dose of luck, you are in a truly enviable position. And that you have had the fortitude to simply sit and hold on to your position since inception is indeed remarkable. Not many people (me included) would have had that conviction. It has paid off big time and continues to do so. Congratulations!
    Importantly, I’d like to thank you for being forthright about the size of your position. That gives perspective into your thought process about what to do as prices bounce in dramatic fashion. The pull to sell is, I’m sure. large. Yet the desire to let this play out in hopes of realizing not just a good return but indeed a “Stellar” one that, as you say, can ensure you and yours a comfortable retirement and beyond is equally compelling. An investment dilemma to be sure. A good one!
    Now .. the important stuff.
    Robert, I realize you didn’t ask me directly for any advice as to what to do. But you did pose some interesting questions that at least indirectly asked for input on what could be the wisest course of action for you given the size of the position and your cost basis. Obviously, I know nothing else at all about you or your financial situation. I could not – indeed OUGHT NOT – give you any direct advice. So don’t take anything I say as such. Talk with your own trusted financial adviser and tax guy/gal about it, then make your own decision. So, to be clear, what I am about to relate is not advice as to what you should do, but instead just some musings of a particular situation I ran into with a client in 1986. It’s a “war story” from my time spent as a Financial Adviser, one of the most interesting I have from among many. You may read what happened here and give it consideration as it might relate to your personal decisions. It’s a good story. Perhaps you – and others here – will come away from reading with a few things to think about.
    It began in February 1985. I was a very new broker and hungry for new accounts – of any size. The easiest accounts to prospect for at that moment was IRA’s, and I was working a call list at night (yes, cold calling was the way to prospect in those days) for potential IRA investors. At some point I called a name off the list and got the investors name (I’ll call him John, not his real name) and got his wife (I’ll call her Helen) on the phone. Nice, polite lady – didn’t slam the phone down in my face. She let me tell her why I was calling but said they simply couldn’t afford to fund an IRA that year. Said all their money had been used a couple years back when John went to work for a fledgeing, privately held company in Ft. Lauderdale that made some kind of specialized parts for those new things just getting attention – personal computers. John was an electricial engineer there. That’s all she told me. But she did make one comment that caught my attention. She said that there was “something going on” at the company which could cause them to need to talk with someone like me next year. She didn’t say what that was and I didn’t ask. Whne we hung up I put some generic IRA info and a couple biz cards in an envelope to mail the next day, and then filled out a 3X5 index card relating the conversation and a note to call back in a year. That got put into my state-of-the-art plastic index card box (yes, that’s how it was done back then – no computers, no internet, no way to keep records other that index cards, legal pads, and a good memory) under February 1985 and forgotten.
    Fast forward to February 1985.
    My first year had come and gone and I was doing well in developing accounts and clients. But not so well I could ignore the possibility of opening a new $2000 account. And, as I went through the index cards for callbacks, there sat the one for John and Helen. I wondered what if anything had happened with Johns company, so I dialed them up and opened a box that led to one of the best accounts I ever had. Here’s what happened – and the point I was making earlier about how you might get some takeaway as it could relate to your situation.
    Things had indeed “started to happen” at Johns company I’ll call it “Telebotics”, (not the real name). When John went to work for them, part of his employment contract was that, if the company ever went public – a HUGE “if” at the time – any employee who had put in some investment capital would be entitle to receive shares of the common stock based on a formula they devised. As I’ve said, John and Helen were true believers and put in $25,000 (the actual amount) and hoped for the best. Well, management had been in discussions with an investment bank, reached an agreement to come to market in an IPO in about three months, and price talk was focusing in the $10.00 – $15.00 per share area. Based on the amount John had invested and the formula of allocation set by management. John and Helen were going to receive 122,500 UNRESTRICTED shares if this came to fruition. It was champagne and caviar time – almost. Dreams of sugarplums danced in their heads.
    At the low end of the proposal ($10.00) the holdings would be worth $1.225 million dollars. At the high end ($15.00) it would be$1.84 million. Pretty heady return on a $25K investment in about 4 years!
    As you might imagine, the employees at Telebotics were just besides themselves with joy. Scuttlebut around the offices had this valuation as just a start – John told me that most felt this price, even at the upper end, represented only perhaps half of the potential within the first 12 months. And beyond that, well, the sky was the limit. Not a single soul was concerned about any kind of drop in price after the offering. They had a great product, innovative, and an industry leader. What could be better?
    As I listened and took notes I realized what was going to come my way very soon. John and Helen were going to ask me what to do – hold, sell (some or all) or even take out a home equity loan and buy more (never an advisable option – NEVER!).
    My first problem was that, with the talks at the point they were, the company had gone into a sort of “quiet period” where they were not releasing any news of providing any financial data. I was being asked to value a company and provide a projection while flying totally blind. Remember, this was 1985 and there was no internet, no good way to get or retrieve data. We worked in a very, very different world back then. And the truth was, even if I had access to those numbers, I had little experience to guide me in trying to value one of these new-fangled companies that had come to be called “High Tech” firms, whatever that meant. All I really had to go on was what John was hearing around the water cooler. And we all know how that usually goes.
    In addition, I had to face an elephant in the room. John and Helen were wonderful, honest, forthright folks – what I simply call “good people”. They never mentioned the fact that, depending on my recommendation (and if they took it) I would be in for a substantial payday of my own. I had to turn the volume on my internal radio station that we all are constantly tuned to way, way down. That station is known as “WII-FM” which stands for “What’s In It For Me?” It plays constantly in every broker/salesman head. And it can lead to some nasty, self-serving conclusion. I wanted to avoid that at all costs, but it was hard to do. I knew I stood to generate upwards of $20,000 commission dollars just with the first actions, and much more coming down the road as cash that might be raised was redeployed into other, more diverse, investments. To me, at that stage of my career, this one transaction would be larger than any single entire MONTH I had experienced up to that point. And based on the commission payout grid in effect at that time and my prior 12 months gross commissions, I would be paid 34% of that $20,000 or some $6,800 gross. In 1985, for me, $6,800 was huge and hard to ignore. But I had to if I was going to be what a Financial Adviser is supposed to be – a person who puts the clients best interests first.
    Over the next few weeks John and I spoke almost daily so he could tell me what he was hearing. Talk from employees (there were only about 25 of them if memory serves) was the same – get the stock and hold on for a ride to the sky. Whatever the offering price might come to be set at, it would be too little and sure to rise fast to that $25.00 level and beyond. The offering would be set soon, the price decided, and John and Helen were looking for guidance from me. To say I was in a sweat is quite an understatement.
    The day finally arrived when the Telebotics released the finalization f plans for the IPO to employees. It was set for the middle of July (about 6 weeks out) and at a price of $14.25 p/s. The deal was all but done, and you could hear those Dom Perigon corks popping! And my time was up. Crunch time. Decision time. What to do?
    It’s now near 4:00PM and this is getting too long. So here’s what I’m going to do for today. I’m going to ask you what you would have advised John and Helen to do if you had been me back then. Think that through. They were a couple in their early 40′s, two boys ages 13 and 11, nice but not over-the-top home in a very good city (Coral Springs, FL) where I also lived, net worth (before this event) around 100K including about $80K in home equity. John’s job is (obviously) solid and he earns in the neighborhood of 75K a year. Helen is a stay-at-home Mom, the hardest job of all with zero pay. And they are looking at you across the kitchen table asking what to do about this new-found fortune. Specifically, what do you tell them? Post up your thoughts if you’d like to share.
    To Be Continued ..
    Jim Skelton
    The Blind Squirrel
    PS: with mkts about to close, SBOTF has hung around that morning price of $1.65. It’s been a good day in the neighborhood.

    Like(0)

  104. So many ‘sayings’ going thru my head right now…. ‘a bird in the hand is worth 2 in the bush’, ‘bulls get rich, bears get rich, pigs get slaughtered’ ….
    I’m not a big Vegas or AC gambler, but when I dabble, I’ll play a slot, most likely a progressive one… why, because although the odds are stacked against you, if those wheels end up matching, could be a life changing win. Thats why I’m holding onto a wad of shares of Stellar. I purchased it originally with my ‘Vegas’ money (money I’d rather gamble on stocks than in a casino), and my original investment is off the table. Don’t get me wrong, selling the position right now would put a very pretty penny in my wallet, just not life changing. If I knew nothing about the company, and was just going on other folks suggestions, I’d be way more wary… but Stellar seems to have a line of people at their door, and i don’t believe they have gotten any fda approval on a vaccine in which its the ingredient. Once one of those pharms gets an approval with KLH in it, I think that door gets broken down and this thing could go parabolic. That said, selling half of what I have now would still put a pretty penny in my wallet, as well as retaining enough shares to ride with into the sunset in case good things happen. Now its a bit easier making this decision when it affects only the decision maker, you as a financial adviser to John and Helen should probably attempt to safeguard a bunch of their profits. Sure if it went skyrocketing upwards, they would be upset they missed the party, but if it crashed and they lost everything… something tells me they might aim a lawsuit at you. I’ve been involved in enough low priced, high tech stocks that went to zero, that I should probably play it a bit safer, but there is something about Stellar that just gives me a warm and fuzzy feeling that they will succeed bigtime. With one kid in college, one going next year, and one 3 years away, an nice influx of cash would be welcome, so perhaps I will be looking to sell some in the near future, but with the way this crazy economy is, and the fact that there really aren’t jobs for college graduates the way there used to be, I’d be very sad if I cashed out just to pay for college, and had nothing left to buy them houses or land, which I’m starting to think they may never be able to afford on their own. My situation differs than John and Helens in that I will have a pension and an IRA along with my other investments, so I think it makes me a bit more willing to ‘let it ride’. Maybe I have a loose screw too, as I’ve got some decent positions in other ‘penny’s’, such as Aethlon Medical (AEMD) and Cytosorbents (CTSO), and 20g’s in the soon to be issued stock of the greenpolkadotbox.com company (something about its owner Rod Smith that I trust). Running out of fingers to cross.
    Always love hearing from the blind squirrel…. keep up the good work and I’m looking forward to the end of your story!

    Like(0)

  105. Indeed, it was a very good day in the neighborhood as I had been having a terrible week in my portfolio and today erased all of my losses for the week! I think that Robert, Jim and I are rather birds of a feather–I’m willing to take on some significant risks when I’m seeing huge upsides and the downsides don’t seem very likely to me. The pump and dump type stocks are definitely not for me although some quick money can be made if you time it right (I would consider NNRX one of these). I’m much more comfortable with choosing several microcaps that seem almost certain to make a lot of money in the future (preferably the near future, but even within a couple years can be worth the wait). In my opinion: Stellar, Natcore (NTCXF) and ClearSign (CLIR) are in this category, hence I have about 40% of my portfolio in these three companies. I’m proud of myself for not panicking at all earlier this week when my picks were getting hammered. I’m still down a bit on my CLIR but have confidence that it will have a great next 12 months. Pick quality companies you trust with great growth prospects and hang in there!

    Like(0)

  106. Found this Seeking Alpha article today about Celldex and its glioblastoma vaccine (which includes Stellar’s KLH), could explain the nice bounce we had yesterday:

    Investment Significance of Upcoming Conference Call

    Celldex (CLDX) has raised expectations for positive results for rindopepimut in recurrent glioblastoma. It will hold a conference call on Monday, November 25 at 8:30 AM to discuss results on the use of rindopepimut in recurrent glioblastoma. The actions of Celldex clearly indicate that the data will be positive. The recently published abstract of the paper on which this presentation partially will be based, indicated that there was an immune response to rindopepimut and that there was one complete response and one objective response out of 25 patients for an overall response rate of 8%.

    I find the data interesting from this standpoint. There is widespread skepticism on Wall Street and in the medical community that any cancer vaccine will be effective. There has been one cancer vaccine approved and that was Dendreon’s (DNDN) Provenge. However, there were a long string of failures before the Provenge approval and some after.

    Even among people like me who are hopeful that cancer vaccines/immunotherapy can be the next great breakthrough in oncology, the data causes me to scratch my head.

    The conventional wisdom is that cancer vaccines/immunotherapy should be used as close as possible to initial diagnosis and surgery because it takes a long time to take effect. If so, rindopepimut would be expected to have little chance to work in the recurrence of an aggressive cancer like glioblastoma. Also, rindopepimut targets a single antigen, EGFRvIII, and many people believe that a cancer vaccine should target several antigens to be effective. Finally, some have suggested that there is less EGFRvIII expression in recurrent glioblastoma than newly diagnosed glioblastoma than recurrent. If so, rindopepimut would be expected to be more effective in newly diagnosed glioblastoma (for which Phase III data is some time off) than recurrent glioblastoma.

    The conference call on Monday should be very interesting and may give us new insights into rindopepimut and perhaps cancer vaccines overall. There should be more data in the oral presentation than in the abstract that has already been published. The data in the abstract is several months old. In recurrent glioblastoma, this is a long time so that the data will be more mature and hopefully more meaningful.

    This promises to be an important event for the stock. What is my prediction on the outcome? I think the data will be encouraging. However, this is based almost totally on the emphasis that Celldex has put on the data. Based purely on the science as I understand it, I would have been skeptical. I am extremely interested in seeing the data and hearing Celldex interprets it.

    Background for Conference Call on Monday

    Celldex announced on August 12, 2013, that it had completed enrollment in an initial cohort of 25 patients who were refractory to Avastin. Based on preliminary evidence of stable disease, tumor shrinkage and investigator-reported response, the company decided to add an expansion cohort of approximately 75 patients to better characterize the potential activity of rindopepimut in this refractory patient population.

    The results in the 25 initial patients will be reported at the Society for Neuro-Oncology Annual Meeting of November 21 through 24 in San Francisco. The embargo on the abstract was lifted on Monday, November 11, and available on the SNO website. I have included a copy of the abstract in the appendix of this report. It has been accepted as an oral presentation and is entitled “ReACT: a Phase 2 Study of Rindopepimut Vaccine (CDX-110) Plus Bevacizumab in Relapsed Glioblastoma.” The oral presentation will be made in a session lasting from 10:20 AM to 12:00 PM on Sunday, November 24. On Monday, November 25, at 8:30 am EST, management will also hold a conference call to review the data.

    The data release relates to 25 patients enrolled in one arm of the Phase II ReACT trial in recurrent GBM. Patients with recurrent GBM have the expectation of six to nine months of median overall survival. They can be treated with Avastin, Gliadel Wafer as an adjunct to surgery (seldom used), surgery or just supportive care. These particular 25 patients were part of an arm of ReACT that enrolled patients who did not respond to Avastin. The August 12th announcement of the trial expansion obviously raised the expectation that rindopepimut had produced a clinically meaningful improvement.

    The question is what constitutes a clinically meaningful improvement in recurrent GBM patients who are resistant to Avastin. I note that Avastin was approved in recurrent GBM on the basis that it produced tumor shrinkage in about 28% of patients, increased progression free survival by about 4.2 months but had no effect on median overall survival. Could it be the case that rindopepimut also might be approved on the basis of improvement only in progression free survival without an increase in median survival? Remember that these patients have very short survival expectations and have no viable drug option. Because of these factors, it is possible that this narrow indication could be a quick route to approval for rindopepimut.

    Of the 600 recurrent glioblastoma patients, we don’t know how many patients would be Avastin resistant. Hence, the addressable patient population is some fraction of 600. While this is a very small patient population, the approval for this narrow indication could be very important commercially. Once approved, it could lead to off-label use in newly diagnosed patients as well. And as previously noted, I am also expecting that rindopepimut could be priced at $100,000 per course of therapy so that 600 patients represents an addressable market of as much as $60 million in the U.S. and $120 million worldwide.

    The Abstract

    I have included a copy of the abstract that has already been released.

    ReACT: a Phase II study of rindopepimut vaccine (CDX-110) plus bevacizumab in relapsed glioblastoma

    David Reardon 1, Gordon Li2, Lawrence Recht2, Karen Fink3, Louis Nabors4, David Tran5, Annick Desjardins6, Nitin Chandramouli7, J. Paul Duic8, Morris Groves9, Anne Clarke10, Thomas Hawthorne10, Jennifer Green10, Michael Yellin10, John Sampson6

    1Dana-Farber Cancer Institute, Boston, MA, USA, 2Stanford University School of Medicine, Stanford, CA, USA, 3Baylor Research Institute, Dallas, TX, USA, 4University of Alabama, Birmingham, AL, USA, 5Washington University, St. Louis, MO, USA, 6Duke University Medical Center, Durham, NC, USA, 7Utah Cancer Specialists, Salt Lake City, UT, USA, 8The Long Island Brain Tumor Center at Neurological Surgery, P.C, Lake Success, NY, USA, 9Texas Oncology, Austin, TX, USA, 10Celldex Therapeutics, Inc., Needham, MA, USA

    EGFRvIII is a constitutively active tumorigenic deletion mutation of EGFR, expressed in ~30% of primary glioblastoma (GB) and linked to poor long-term survival. The investigational vaccine rindopepimut consists of the unique EGFRvIII peptide sequence conjugated to keyhole limpet hemocyanin (KLH), delivered intradermally with GM-CSF as an adjuvant. Three phase II studies of rindopepimut in newly diagnosed, resected, EGFRvIII+ GB have supported improvements in progression-free survival (PFS) and overall survival (OS), compared to contemporary cohorts matched for major eligibility criteria. Bevacizumab (BV), which inhibits VEGF and its immunosuppressive properties, may augment EGFRvIII-specific immune response and antitumor activity in patients with advanced GB. ReACT is a Phase II study of rindopepimut plus BV in patients with 1st or 2nd relapse of EGFRvIII+ GB. BV-naïve pts (Group 1; n=70) are randomized 1:1 to BV plus double-blinded injection of either rindopepimut or control (KLH). BV-refractory patients (Group 2, n=25) receive BV plus open-label rindopepimut. To date, 31% of screened patients are EGFRvIII+. 47 patients (Group 1=22, Group 2=25) have been enrolled, and 23 (Group 1=12, Group 2=11) continue treatment. Primary treatment-related toxicity was Grade 1-2 injection site reaction. Rindopepimut-induced anti-EGFRvIII humoral responses are robust (median peak titer [range] = 1:12,800 [1:100-1:3,276,800]), similar or higher to those in rindopepimut studies of newly diagnosed GB, and greatest in BV-refractory patients. Of 17 Group 2 patients evaluable for response (investigator-assessed; RANO criteria), one Complete Response (32+ weeks duration; peak anti-EGFRvIII titer=1:3,276,800) and one Partial Response (at week 8; subsequent confirmation pending) have been observed. 5/17 (29%) had PFS >8 weeks. Preliminary data show that rindopepimut+BV can induce remarkably potent EGFRvIII-specific immune response and objective tumor response in immunosuppressed patients refractory to BV. Full response, PFS and OS data for both groups are expected to further define the potential clinical benefit of the combination in relapsed GB.

    Like(0)

  107. Nice article on Stellar Biotech just publishd by the Behavioral Economist in Seeking Alpha: Conclusion
    Stellar Biotechnologies is an enticing investment option with innovative and exciting science. Given the companies head start in the field of KLH research, and their proprietary methods and exclusive rights to further advancements, there exists considerable upside.
    At Stellar, the addressable markets they aspire to become a part of, combine to exceed 440 billion dollars. The in-house forecasts for revenue are nearly 700 million dollars annually. The upside to share price, based on those projections, and in consideration of current outstanding shares, would be by a factor of ten. Needless to say, that is significant. However, due to an uncertain timeline moving forward, forecasting a price target would be a highly speculative, and counterproductive, exercise.
    What is certain however is this; Stellar is leading the way in an emerging treatment market. The science is innovative, the potential is noteworthy, and the leadership is impressive. The company is, in terms of an equity, a viable option for long term investors with a moderate tolerance for risk, and an ability to cope with uncertain timeline’s. Stellar Biotechnologies is deserving of both investor consideration, and additional due diligence

    Like(0)

  108. Decision time for John & Helen: yesterdays post continued ..
    by Jim Skelton
    The Blind Squirrel
    First, action with Stellar: At 10:00 AM, after some upside moves in after hours trading, SBOTF is up afain by some $0.07 to $1.80. I – and I’m sure you – are all green again. In fact, all positions in the Special Sit acct. are moving up including DDD (which I held) and UREE (US Rare Earths) that I was a tad concerned about of late. Oops – I just got pinged on an alert – NNRX (Nutranomics) just went south about $0.05 so it’s the lone decline in that portfolio today. No worries there, though. I’m up some 30% since purchase less than a month ago – wish I could say I had that sort of gain in all portolios, but the others aren’t designed and managed for that.
    Now, on with the story. FYI, I’m going to try and be less detailed here – this is getting too windy and I’m sure many of you are bored to tears with an ole mans stroll down memory lane.
    With a week left before the offering, I laid out my plan. I opened the thoughts with a statement that I hoped would give John and Helen some clarity into my thinking. I told them that my objective was threefold: First, I wanted them to become instant, all taxes paid, money in the bank millionaires. In 1986 that was still considered quite a feather in your cap – to be a bona fide millionaire, not just on paper, but in your pocket. And it would help ensure a lifestyle of their choosing going forward if properly managed. Second, that I wanted them to escrow enough cash to pay whatever taxes may be due come the following April. Then forget about that for the time being, knowing most of it was not theirs but instead Uncle Sams. And third, I wanted to preserve enough of the shares of Telebotics so that, if the rapid rise in price that was believed to be coming actually did happen, they would have enough to still make Many tens of thousands of dollars with the company.
    Here’s how these three objectives would be accomplished.
    One: We would sell 100,000 shares at 10:00 AM following the opening at 9:30. This would allow a little time to see if the stock was going to “POP” higher or trade into the market at or near it’s set opening price of $14.25. We agreed, however, that if the price was at $16.50 or higher, and seemingly trending higher, we would hold off on the sell until and unless that upward trajectory stalled and/or began to pull back. After the sale, we’d put $1,000,000.00 into an account I had already set up and was pending funding. This accomplished the “Instant Millionaire” part of the suggestions. What might be done with it was for later consideration after all the smoke had cleared and emotions settled.
    Two, the remaining proceeds of the sale – that part which would amount to at least $425,000 if the 100K shares were sold at the offering price, – would be put into a separate account of its own in a money market fund. When the tax man cometh, this would be the pool from which that obligation would be paid and the remainder moved over to the first account for future investment. Heck, in 1986 we were being paid about 7% or so on money market funds, a return not to be ashamed of. I told them to just think of it as if they had bought a basket of high dividend-paying stocks that had the benefit of having a guarantee of no chance of going down.
    And Three, we would hold the remaining 22,500 shares for future potential in case the other employees were right and the stock would move much higher in the coming months. That size of a position in such a high-risk stock was plenty enough to give hefty dollar gains if that appreciation should happen.
    After consideration of a day or so, John called and gave me the green light to go ahead with the plan as proposed. And, on offering day, I did just that.
    The stock opened as advertised at $14.25 p/s. There was no immediate “POP” in the price. By10:00 AM it was trading around $14.75, so I called our trading desk and placed the order. They worked the shares so as not to affect the price and by noon were were sold with an average price around that $14.75 area. Step one accomplished; John and Helen were confirmed millionaires.
    The day closed little changed but still up a tad from the offering. And then we got our resolve tested.
    Day two saw the price move up to the low $15.00′s, then closing near $16.00. I spoke with John – he was a little remorseful but not overly so. That’s just human nature. After some hand-holding we agreed again that the right thing had been done regardless of where the price went from there.
    Day three began a different story. That price of about $15.90 began to slide back. The day closed with the price right at $15.00. The next day the slide continued, closing back at the offering price, give or take. And from there things just got worse.
    The price of $15.90 was the high water mark for Telebotics. Never again did we see that level. Why, I don’t know. Like I said earlier, there was little financial data available and besides, there was only one analyst covering it – he was with the lead underwriting firm, and they almost ALWAYS put at good face on a stock they have promoted and sold to clients and other firms. One must be cautious in relying on analysis from the underwriter. John and Helen were happy – even though denial was rampant at the company offices with neally 100% of the other employee/investors standing by the assertions that this was just a temporary setback and the right thing to do was hold and wait it out. That proved to be a mistake. A really, really big mistake.
    For this point my memory gets a little fuzzy as to exact prices and time frames, but I can remember this much; At some point, within a year I think, we sold the rest of the shares at prices in the $10.00 – $10.50 range. The stock died a slow and painful death, and those who doggedly held on got creamed. The last time I looked at it, perhaps three years after the offering, it was below $2.00. Again, I can’t say why this happened to a company that seemed to hold such promise. In addition, John had left the firm after perhaps a year from the offering to set up his own freelance consulting business. So I had no contacts at the company to speak with. No matter – we were out and on to other things. And I had earned a client for life.
    John and Helen enjoyed some of the money straight away. John bought himself a top of the live Volvo – engineers tend to love those vehicles, that and BMW’s. We set up college fund accounts for the two boys, Helen got a few things she had always wanted, and they made a big decision. They sold the house in Coral Springs and bought one high up in the Smokey mountains of South Carolina. Got away from all the congestion and hustle of the super-urban South Florida area, back into a far more relaxing and laid back lifestyle.John continued his consulting work free from worries of what if a month of three passed with no income, Helen spent her days happily being Mom to the boys and enjoying their last few years at home before college and life got them out of the house.
    The last time I actually saw them was in the summer of 2000. My then-wife and I were off on another of our many two-week tours of America in the saddles of our Harley-Davidson Electra Glide. Both of us simply LOVED traveling in that manner on the small back roads of our beautiful Country, meeting people and finding off-the-map places never seen by those who travel enclosed in a 4-wheeled vehicle and flying down an Interstate. Believe me, America is still out there, alive and well (more or less), and there is great adventure to be had by getting out and finding it! Anyway, we had ridden up to Gatlinburg, done that and then spent a day at Dollywood (go if you can – it’s GREAT family fun!), and were headed over to Kentucky to see my aunt. I called John and arranged to stop by and see them on the way, and we did. Spent a few hours just visiting and such, then had to get back on the road.
    It was great to see how happy they were, the beautiful house nestled up on that mountain top, picture-perfect vistas of the surrounding countryside. Life for them was good. When I lay down in bed that night I reflected for a moment on how things were for the two of them, and I must admit I found personal satisfaction in knowing I played a small part in making that happen. Two years later I closed my Edward Jones office and retired from the business. John and I stayed in touch via e-mail for another couple years and then that that tailed off to nothing. And life went on.
    So, that’s it. We put the funds to work in several very good ideas, and a couple not so great. That’s to be expected in that business. Nobody’s perfect, certainly not me. To this day I sometimes think back to that time nearly 30 years ago now and wonder how they are doing. I hope all is well. They contributed a lot to my life in many ways and I’ll never forget that.
    I don’t know what if any takeaway you might get from this story, AH. Or anyone else who faces a situation where a life changing event is in the balance and you have to make a decision as to what to do. John and Helen and I made what turned out to be a very good decision for their circumstance. It could have gone the other way – never overlook the luck factor in all of this. “The best laid plans of mice and men often go awry.” I wish you all the best of good fortune, wisdom, and understanding in your personal decisions.
    And that as they say is “The End”.
    Meanwhile, as I have been writing, Stellar has been all over the board – currently at $1.75, off from the intraday high of $1.84. And the wheel spins round and round.
    Best to All,
    Jim Skelton
    The Blind Squirrel

    Like(0)

  109. FINALLY!! RECOGNITION!!
    by Jim Skelton
    The Blind Squirrel
    At long last, Stellar Bio has attracted some attention. Today at 1:19 PM, a comprehensive research article on SBOTF was posted on the Seeking Alpha website. It was written by a Contributor who writes under the name of The Behavioral Economist. The author states he has no position on the stock and no plans to acquire one within 72 hours.
    It is a highly technical article about the properties of KLH and it’s many uses. It tells of Stellars’ huge lead in the industry of land-based farming of the Giant Keyhole Limpet and why that is critical. And it goes on to illustrate what they are doing, the great leadership in place, and the potential growth over the next few years – a 10X return is suggested but not offered as a solid prediction.
    Go to the S/A site, find this article, and read carefully. This is the first comprehensive article I’ve seen to date and it is a very good one for all of us who are long SBOTF.
    This is a great first step on the road to coverage and investor exposure. It’s a landmark day in Limpetland!
    Jim Skelton
    The Blind Squirrel

    Like(0)

  110. Addendum to the S/A comments: The title of the article is “Stellar Biotechnologies: Innovation, Experience, and Upside”. I should have had that in the lead of the previous post. Apologies.
    Jim Skelton
    The Blind Squirrel

    Like(0)

  111. Hi everyone,
    great story Jim, really enjoy your musings and stories back from the old days. Listening to your story makes me reflect on my own state of ‘greediness’, meaning always wanting to get the top and the bottom and not being satisfied with a bit less. Thanks for that!
    Robert V. , thanks for your comments and insights into your trading activities. My fingers are crossed too. Wish you the best of all possible outcomes with your lucky limpets and other stocks. You definitely did some great research in some of the companies you mentioned above. Thank you for sharing. I will take a closer look at them.
    Happy investing to All and go for the lucky limpets.
    P.S. I am long Stellar (SBOTF) and Aethlon Medical (AEMD)
    Herbert

    Like(0)

  112. Jim, you never bore me. When I see a post from you, its time to brew a cup of coffee, sit back… relax and enjoy. Keep up the good work!
    Herbert, thanks for the kind words.

    Like(0)

  113. Haha..Thanks Jim.
    This was more like a feel good movie ending rather than a cautionary tale! Was more excited on the Gatlinburg story though. Over the weekend I went to Gatlinburg, Smokies and hiked Mt Leconte. Excellent town, old town feel and wished i had a house up there. Shoutout to all members for their their stock insights.
    Happy Thanksgiving to one and all.
    Cheers,
    AH

    Like(0)

  114. AH:
    I hadn’t thought of it as a “movie ending” but you’re right, It was. A happy one for all. I hope no one thinks I make this stuff up or alter the facts of cases I was involved in. I don’t. Sometimes things just work out in a very pleasant manner .. and sometimes not so much. Maybe someday I’ll post up another story that doesn’t have such a warm and fuzzy ending. I’ve plenty of those, too.
    I envy your trip to Gatlinburg. It is such beautiful country in and around there even with the commercialization that has enveloped the area over the past 30 years. The first time I went to Pigeon Forge it was hard to find. Now it’s mile after mile of hotels, eateries, and Comedy Clubs. Very family oriented. Dollywood is a wonderful place, full of all manner of things to do, and priced for the family pocketbook – Dolly has never forgotten her rural, empoverished roots. And those comedy clubs – what a riot!! The Comedy Barn is my fav. Split your sides with two hours of constant laughter and never hear a vulgar word. Not one. Like I said, America as we remember it is still out there but you gotta get off the superslabs and away from the Vegas-style developments to find it. And the food at those thousands of Mom-and-Pop cafes .. OMG!! As we bikers say, “Ride to eat, eat to ride!” :0)
    Wishing you and the entire Gumshoe Nation a very happy Thanksgiving – we all have so very much to be thankful for.
    Regards,
    Jim Skelton
    The Blind Squirrel
    … will somebody please pass over that sweet potato casserole and the dressing?
    Almost forgot .. this thread is supposed to be about SBOTF, not Comedy clubs and gravy-soaked chicken fried steaks. We took a $0.07 hit today and I’m back in the red a bit with my long position. Not gonna buy or sell anything until next week at the latest. Probably not until the upcoming Investor presentation is over next week. That might offer some information that is helpful in understanding where we are and what direction the winds are blowing. Don’t expect any big revelations or blockbuster-style announcements. Do expect further insights and hope that the sponsor of the conference will be interested enough to do a follow up analyst report on Stellar. This house is being built one brick at a time and this presentation is another of those construction blocks. Go to the Stellar website at the conclusion of the presentation to watch a replay and hear for yourself.It should be on there by about noon EST, give or take.
    The Blind Squirrel is OUTAHERE!

    Like(0)

  115. FYI doubt there will be any big news but who knows? Most likely the Webcast will emphasize recent encouraging trial results with KLH and talk of staff expansion–perhaps related to increasing KLH demand worldwide. Happy reading, David

    Stellar Biotechnologies to Host Corporate Update Conference Call and Webcast on December 11
    Management to discuss recent achievements and future catalysts for growth

    PORT HUENEME, CA, (December 3, 2013) — Stellar Biotechnologies, Inc. (“Stellar” or “the Company”) (OTCQB: SBOTF) (TSX-V: KLH), the world leader in sustainable manufacture of Keyhole Limpet Hemocyanin (“KLH”), will host a general corporate update and conference call virtual presentation webcast at 11:00 AM ET (8:00 AM PT) on December 11, 2013.

    The Company will review the significant milestones achieved in 2013 including its acquisition of exclusive rights to an innovative KLH-based immunotherapy technology to treat Clostridium difficile infection (“C. diff”), as well as recent manufacturing and R&D progress. In addition, Stellar’s management will discuss the Company’s plans for expansion involving potential catalysts in R&D, manufacturing and business development.

    Telecast and Webcast Information:
    Date: Wednesday, December 11, 2013
    Time: 8:00 AM PT/ 11:00 AM ET
    US Dial-in (Toll-free): 1-877-941-1427
    International Dial-in: 1-480-629-9664
    Conference Call ID: 4653815
    Webcast Link: http://public.viavid.com/index.php?id=107091
    For the live and archived webcast, please visit the investor presentation section on Stellar Biotechnologies’ website at: http://www.stellarbiotech.com
    A replay of the call will be available through December 25, 2013. To access the replay, please call 1-877-870-5176 if calling from North America and 1-858-384-5517 if calling from outside the U.S. and Canada. The replay passcode is 4653815, for additional information please visit the investor section of the company website at http://www.stellarbiotech.com.

    Like(0)

  116. Two new patents announced today on the C Difficile vaccine. One in the U. S. and one in China. Not huge news, but further evidence that the company feels strongly about the prospects for this vaccine. This is also evidence that the company continues to protect its interests against a hostile takeover or other predatory practices. SBOTF has great management, incredible growth prospects and a virtual corner on the medical grade KLH market. No wonder it’s up 600% in 12 months.

    Like(0)

  117. Re: Two new patents, further proof that SBOTF is indeed “The Real Deal” and not just more tulip bulbs. I’m not at all sure what more can be said at present but am awaiting Wednesdays presentation with interest.
    As an aside, I sent the new PR guy an e/m last week asking if I could pose some questions to him for which I’ve never seen answers. I didn’t ask any questions at that time, just wanted to see if he could respond if I do. No reply from him yet – probably consumed with matters such as this press release and the upcoming presentation. If he does reply to me with an affirmative, I’ll ask what I’d like to then let you all know the answers.
    Thanks for posting, David – I was just about to do the same when yours popped up saving the time and effort. I’ve been consumed following the events of the day regarding another micro-company, Nutranomics (NNRX). I took a small position about 6 weeks ago at $0.61 per share and have since watched it climb as if on a perfect staircase upwards, closing Friday at $1.23. Then today it opened at $1.26, stayed there for maybe 20 minutes, and a sell order from somewhere for about 1.5 million shares hit the floor. Price gaped down to about $0.58, has recovered a little since. This could be a classic Pump-N-Dump between the company itself (Nutranomics), the “promoter” (InvestorIntel) that has been sending out short touts about the company and giving a target price of $1.75 in a week, $4.50+ in a year, and a company (Nugget Enterprises LLC) that has been paying InvestorIntel around $250,000 twice a month for unknown “services” (see disclosure statement at bottom of InvestorIntel touts. I’m just guessing here but I suspect Nugget Enterprises has paid InvestorIntel to send out those daily touts for NNRX and is somehow connected to Nutranomics. But finding ANY info about any of this is difficult at best.
    My investigations into who and what NNRX is has yielded very little hard data. Only the SEC filings they have made over the past several years provide any peek into the company at all – which I believe began life an a gold pre-exploration / mining outfit called Buka Ventures with a small claim in the Republic of Fiji (ever heard of that, Myron?). That went bust in short order, a reorg of sorts ensued, company went through a few name changes and organizational restructuring, emerged as a nutritional supplement company that says they are about to get a blockbuster of a supplement treatment for diabetes on the market in less that 2 weeks. And so on and so on.
    Price just kept rising, then this AM … BOOM!! Chart looks like Mt. St. Helens upside down.
    Hope none of you got hooked on the hype and creamed in the decline. Me, I’ve given back the profits and a little more, so no big deal really except Santa will have to pull back on the sleigh-load a bit when he stops by this year. Oh well. I’ve said it a few dozens times – no profit is yours until you actually TAKE it by selling. Until then Mr. Market is in possession and can come calling at any time to claim what is his. Honestly, I don’t know if there was any malfeasance on the part of the company or not. But it sure looks so. Many things that make ya go Hummmm.
    PLEASE: don’t take this info and respond on this thread. This blog is about SBOTF. If you have comments about NNRX, open a new mini-blog and those of us who like to try and expose these scams (if that is what this is) can join in there.
    I’m thinking NNRX is indeed Tulip Bulbs. Makes Bitcoin look rational. And the nice profit I was sitting on last Friday? Well, that’s gone up in smoke today in one fell swoop. Deja Vue – It’s October 1987 all over again in miniature.
    Such is the life of a high risk taking investor in tiny, unproven companies. What you think you see ain’t always what you get. It’s “Run Forest, run!!” time.
    Your Resident Blind Squirrel,
    Jim Skelton

    Like(0)

  118. ATTENTION ALL GUMSHOERS: YOUR RESIDENT BLIND SQUIRREL, JIM SKELTON, HERE WITH A MESSAGE THAT MAKES ME LOOK NOT ONLY BLIND BUT CARELESS AS WELL. I HAD NO INTENTION OF WRITING ANOTHER WORD ABOUT THE SITUATION WITH NUTRANOMICS (NNRX)AFTER MY POST ON DEC. 9 (#139) BUT I MUST IN ORDER TO CORRECT AN ERROR I MADE THERE. PLEASE READ.
    On Monday morning I had been doing some research on a few Rare Earth companies and was using my favorite resource for good atricles and analysis on that topic. That resource is a website called “InvestorIntel”.
    As I was doing this the sell off in NNRX hit like a tidal wave and totally distracted me as I am long NNRX. A half hour or so later, reeling form the shock of this debacle, I wrote that post. In it I said that the promoter of the stock which I had been getting daily e/m’s from was InvestorIntel. THAT IS INCORRECT. I contacted the owner of the site and made my sincere apologies that were graciously accepted. Talk about a heaping, steaming serving of egg-on-my-face for breakfast!
    InvestorIntel is a reputable and informative site that focuses on just a few areas of the market: Rare Earths, Graphene/Graphite, Oil & Gas, Precious Metals, and a couple others. They do a fine job of presenting research articles on those topics that can be hard to find elsewhere. I recommend that site as a source of information to all.
    The company I had been getting the puff pieces on NNRX from is called “Analysts Corner”. They re not a research organization of any kind, nor are they in any way objective. They are paid by the companies they promote (see the disclosure posting on their site for proof) to push and promote a stock. And “never is heard a discouraging word” is the mantra there. For example, yesterday I got the daily e/m that said in essence the decline of some 70% or so on Monday was actually A GOOD THING because it gives opportunity to buy more NNRX at lower prices. You believe that? Some cajones on those folks, whoever they may be.
    Bottom line is this: InvestorIntel is in NO WAY connected to this ongoing Pump and Dump campaign with Nutranomics. The culprit here is Analysts Corner. Avoid ANYTHING they say or do like the plague – because in a way, that’s exactly what the product they spew is – a plague on the serious investment community.
    My apologies to all. “Nuff said.
    Now, I’m looking forward to the conference call at 11:00 AM with Stellar Biotech, a real company with real potential that needs no hype or puffery. I love my Limpets!
    Sincerely,
    Jim Skelton
    The Blind Squirrel
    DISCLOSURE: I am long NNRX and SBOTF. I may sell some or all of the position in NNRX at any time. I may add to my position in SBOTF at any time.

    Like(0)

  119. The market appears to be punishing Stellar after today’s presentation. I guess that some were expecting “big news” like a deal in the works. I remain very bullish as the demand for KLH continues to grow, the many trials using KLH continue to show very good news and the C Diff trial news is quite encouraging. I was predicting a sustained $2 price by year’s end, but it really doesn’t matter. I’m in this for the long run and quite a run it will be. The price spikes will come in fits and spurts until true profitabilty and/or news of deals or partnerships.

    Like(0)

    • The presentation was nothing but positive. They have cash for about 30 months, all kinds of clinical trials utilizing their products, discussed lots of ways of maximizing their potential, discussed how they care about the shareholders…. near term catalysts, near future upgrade to nasdaq or amex, I’m thinking they’re caught up in the general downtrend of the market today, maybe one or 2 investors jumped ship expecting them to make a huge announcement, but as far as I can see, its all looking good. They even answered my question about them being a possible takeover target.
      My original question sat there for a while:
      What would be the companies feelings towards a buyout offer?
      so I followed it up with:
      I asked my original question about possible buyout offers due to the fact that there must be large pharmas with deep pockets that could view an early purchase of your company as the best way to ensure their KLH supply, while blocking their competition. Have any companys inquired and what would Stellars response possibly be?

      The response was, if they were to get an amazing offer, they would bring it up for a stockholder vote, but deep down, since they’re involved with so many different companies in various stages of clinical trials, they would prefer to follow the trials thru to the end in an effort to give the companies using the product every chance of success while putting their minds at ease for the availability of KLH in case their trials succeeded.

      Someone brought up the fact that another company could just catch the Limpet if one of the trials succeeded, but they eased that concern stating that not many companies would want to rely on ‘catching’ something they needed, and Stellar is the only company that is raising these Limets (multi-generationally).
      All in all, I thought it was a very honest and positive conference, which only goes to show how strange this thing we call a market really is.
      Keep the faith folks and good luck to all.

      Like(0)

  120. Hello fellow Limpet-Lovers! The Blind Squirrel back again to add my 2 cents worth – if indeed what I have to say is actually worth 2 cents – on todays conference call.
    I wanted to sit back awhile and noodle over what I heard, what it might mean ,re-check my notes, then think it over before jumping back into the fray. For what it’s worth, here goes.
    First I want to get a pet peeve of mine out of the way. That pet is jargonism vs. what I call plainspeak. Jargonism has taken over almost all aspects of our lives today. It is the free and unfettered use of technical and industry-specific terms when someone with a vast store of knowledge is speaking to others about their area of expertise. Or maybe they are just spouting off trying as best they can to impress someone else – you never can really tell which it is.
    The investment community has gone the way of the technology folks, interspersing their conversations with terms like “strategetic imperatives” and “tactical deployment of imbedded advantages” and so on. Listen to the talking heads at Fox Business, CNBC, etc. You know what I mean. And all that jargon, for the majority of us, does little to clarify what is being presented. Instead it just makes the presenter sound sophisticated and intimidates folks from asking simple and direct questions for fear of bring viewed as simple minded. People like me for instance. And then there is the use of all the acronyms as substitute for a complete sentence. Makes my head spin. If I had wanted to live in a land where people spoke in that verbal currency I would have stayed in the Army – the Mother of all acronym-speak.
    The best example in todays presentation was when some analyst asked Mr. Oakes if he could provide some “granularity” about something or the other. Say whaat? “Granularity”? That’s a new one to me. When he said that the image I got in my head was that he was asking about something like sandpaper, or salt. You know – granules. The term riccocheted around in my noggin for a trillionith of a nanosecond, was passed from neuron to neuron, each asking the other what the heck it meant, until finally hitting the eject chute neuron that, seeing that there were no answers, spit it out of my head so I could move on. Somebody ant to educate me and define “granularity” as it relates to subjects such as was under discussion?
    I like plainspeak, as you may have noticed from my writings. I don’t feel the need to use words and terms that I know a lot of people won’t really understand. It’s not that I can’t – it’s that I have no ego-driven need to do so. I prefer to converse in a genuine, understandable manner so that all involved can get a sense of what is being explained and come away with a better understanding of the subject. I know that some level of high-minded and technical jargon is required. But can’t some of it be pared back to words that have meaning to folks without Phd’s in Bio or Techno whatever?
    Anyway, I would have gotten more out of it if it had been presented in a manner a little less reminesicent of a masters-level college course in lingustics. Some once told me that, when making a presentation on any topic, always first think of who your audience is and prepare remarks in a manner that will carry maximum meaning to them. Not to a bunch of preening academics. Unless of course you are speaking to an audience of preening academics, in which case my mentors advise was to run as fast and as far from the auditorium as I could.
    Now on to a few things that were addressed. Or in some cases were not addressed at all.
    I don’t need to waste any more of your time than required, so first I’m going to assume you have read the previous two posts by David and Robert. They make great summary points that do not need repeating. So I’ll try not to. but I’d like to dig a little deeper into a couple of those points and ask some questions of my own
    I was glad to hear the explanation of whether or not KLH can be synthesized. Turns out that, on a technical basis, it can. But on a practical basis, it can’t. Not economically feasible, unreliable, not traceable, impure. In other words, anything that might get cooked up in somebodies basement isn’t going to be of any useable quality. And it will cost far too much to make, so there is no profit to be had. That concern which has been floating around for a couple of years is now put to rest. KLH is sourced from the blood of living GKL’s, not test tubes. End of story.
    Now, as to getting hold of the Limpets living in the little colony in the wild for the purpose of extracting blood and making KLH. Robert touched on that. The “news” I heard was that the State of CA has recently been on a mission in the coastal fisheries arena, restricting the ability of fishermen, individual or especially commercial, from going into large, specified areas of the ocean and fishing for anything that lives there. That would include GKL’s. So, another question is at least partially answered; can just anyone go in and scoop up a few thousand Limpets and take them off for processing? Perhaps not – that part of the inquiry wasn’t specifically answered. Has California put restrictions on the little stretch of coastline where the Limpets breed and live, or is that still open for fishing? There was one comment that seemed to indicate that whatever State regulatory authority is in charge of these kind of things has finally began to look at the situation in terms of the Limpet population and whether or not it is so small that regulation and protection is something to consider. Oakes didn’t state specifically that this was true, that the issue of the GKH’s in particular was under study, but he somewhat implied it either was or could become so.
    Good thing our Limpets aren’t situated just off the coastline of my home state. Because if they were, I can promise you that a lot of people would have long ago pulled a croaker sack full of them from the ocean, toeed ‘um in a deep fat fryer, then removed and doused in Tabasco sauce. Like extra-huge oysters or soemthing. Those good ole coastal dwellin’ country boys and gals will eat most anything if you can deep fry it or cover it in sugar. So we can be thankful for that accident of location of the colony.
    Whatever, these statements about the availability of Limpets to harvest and process clearly shows the strategic advantage Stellar has over all other companies that may be thinking of entering the business. It is part of a mighty wide “moat” of protection from competition that will be in place for many, many years to come.
    Which leads into a question I posed several months ago and got no response to. I think most people who noticed it probably thought I was just off on another of my Quixoitic adventures, asking questions that were so far-fetched as to be silly. Whatever. It appears from what Oakes said today that the board was pondering this same issue and coming up with plans to quiet the concerns I raised. Not that they told me about it, of course. Imagine that – they don’t seem to want my input about anything they are doing :0). In much the same way my ex-wives treated me.
    My concern back then was what would happen if and when a natural disaster might strike at the production plant – an earthquake, a Tsunami, etc. This is California, remember. Home of earthquakes and fires and people who think burning SUV’s in dealers lots will,solve the world energy problems. They might turn to burning the plant that houses the Limpets in the name of animal cruelty or something. You just never know with those wierdo’s. Hell, Kristie Alley might lead the charge! If the physical plant were damaged or destroyed, and along with it the entire population of the Limpets, where would we be then? Done and gone, I suspect. And sure enough, I wasn’t all that crazy in this thought. Oakes said the board had been considering exactly that potential situation and was in process of establishing additional facuilities away from the Port to preserve a community of land-based snails in the event the original plant was destroyed. Ah, sweet vindication. I may not be as nuts as a lot of people sometimes think.
    Third, I was amazed at the lack of curiosity on the part of the analysts on the call about the mysterious “biotech investor” that had provided the $5 million in funding. We all know who that is – Charlie Yin. over in Taiwan. Why wasn’t he named, and what’s the big secret? And no mention of his warrants that will be coming up sometime in the next three years. Not a soul asked for clarification. Now, I can understand that maybe Mr. Yin asked for them not be up front by using his name right off the bat, but everyone concerned knows that if it was brought up it would have to be openly discussed. So why not? I’m not saying there is anything wrong with that – I’m asking why this very important piece of information as it relates to the financial situation at Stellar was so easily glossed over and left undiscussed? And linked to that was the absence of any mention of the appointment of Dr./Ms. Tessie Che to the board. Having someone with her credentials, expertise, and experience come on board would be a big deal at most companies and very worthy of mention. Yet not a whisper of it – and again, no analyst bringing it up. Maybe I’m missing something here. Any ideas?
    And last, we all now have a better grasp of the time frames within which we have to adjust our thinking regarding some issues. We know the board is working hard to get SBOTF listed on an American exchange (please, God, let it be NASDAQ, not AMEX!), and that could happen by mid-2014 (no promises, though). We know that any signifigant revenues from the sale of KLH to big Pharmas cannot realistically be expectd for perhaps another 2 years, and that sales to sustain a successful new drug in production which use it in the formulation are as much as five years out. And as for a c. diff. vaccine of our own, who knows? Five years, seven years, ten years? Getting the science right and the various trials completed and approved could take ages. But we’re workin’ on it and have a big lead over any others as far as anyone can tell.
    And as you know, all this good news and high expectation did nothing at all for the stock price. We closed around $1.70, down some $0.20 per share, or (-10.5%) on the day. Go figure. The general market was off, true, but Stellar marches mostly to it’s own drum. I said it before and will repeat for a final time – the “easy money” has been made already. Seeing day after day after day of 5% – 10%- 20% gains are, by and large, over. Now it’s time to start showing the investment community at large with the numbers produced what all this can do. Not just the hope and hype of the past year. Hard and fast results are now becoming the currency by which Stellar will be assesed and priced.. A really big pop in price will now depend more on a really big news release about sales, some actual earnings, or a breakthrough in drug approvals and development. I have no idea whatsoever what the price will be at year-end 2013 or 2014, or 20-you call it. I am convinced that the trend over time will be onwards and upwards barring some unforseeable and unpredictable event at the company. I’m happy to hold and wait out what Mr. Market throws at us stakeholders. I have a feeling we will all come out with big ole silly grins on our faces someday. Just not today.
    Regards to the residents of Limpetland. May your Christmas stockings be stuffed with nothing but profits and promises of good times ahead!
    Jim Skelton
    You Resident Blind Squirrel
    DISCLOSURE: I am long SBOTF and may add to or sell shares at any time. I’m going to hang my stocking over my fake fireplace now and wait for Christmas morning.

    Like(0)

  121. Stellar Biotechnologies Announces Collaboration with Amaran Biotechnology, Inc.

    PORT HUENEME, CA, (December 12, 2013) — Stellar Biotechnologies, Inc. (“Stellar” or “the Company”) (OTCQB: SBOTF) (TSX-V: KLH), announced today that it has entered into a collaboration agreement with Amaran Biotechnology, Inc., a privately-held Taiwan biopharmaceuticals manufacturer (“Amaran”) to develop and evaluate methods for the manufacture of OBI-822 active immunotherapy using Stellar’s GMP grade Keyhole Limpet Hemocyanin (“KLH”).

    Amaran designs, develops, and manufactures active immunotherapies such as OBI-822, the lead immunotherapy product of OBI Pharma, Inc. The primary purpose of the alliance is to develop and evaluate methods for the manufacture of the OBI-822 active immunotherapy using Stellar’s GMP grade KLH.

    OBI-822 is a new generation of active immunotherapy combining Globo-H, a carbohydrate antigen frequently expressed by cancer cells, together with KLH as the immune-stimulating carrier molecule. An active immunotherapy uses a patient’s own immune system to recognize and mount an attack against the targeted tumor cells. OBI-822 is currently being evaluated for the treatment of metastatic breast cancer in International Phase 2/3 clinical trials* in the United States, Taiwan, South Korea, India and Hong Kong. It is also being evaluated for the treatment of ovarian cancer in an investigator-initiated Phase 1/2 clinical trial in Taiwan.

    * OBI-822 is in Phase III in Taiwan and Phase II in the U.S., South Korea, India and Hong Kong

    “This is an important, multinational clinical project and Stellar is very pleased to collaborate with Amaran on the manufacture of Immunotherapies such as OBI-822” said Frank Oakes, President and CEO of Stellar Biotechnologies, Inc. “This is an excellent example of Stellar KLH™ technology serving as a platform for partnerships with long-term product development and commercial potential.”

    Catherine Brisson, Ph.D., Chief Operating Officer for Stellar said, “KLH is a key active ingredient in immunotherapy drugs. Our goal is to ensure that partners such as Amaran have future supply of the highest-quality KLH to meet the specifications of each particular immunotherapy drug.”

    “We are pleased to have Stellar Biotechnologies’ key technical advances in KLH applied to this important cancer active immunotherapy program,” said Tessie Che, General Manager and Chair of Amaran’s Board of Directors. “We look forward to working closely with the Stellar team on this development project.”

    Under the terms of the agreement, Stellar will be responsible for the production and delivery of GMP grade KLH for evaluation as a carrier molecule in OBI-822 immunotherapy. Stellar will also be responsible for method development, product formulation, and process qualification for certain KLH reference standards. Amaran will be responsible for development objectives and product specifications.

    The agreement provides for Amaran to pay to Stellar fees for certain expenses and costs associated with the development program. Subject to certain conditions and timing, the collaboration also provides for the companies to negotiate a commercial supply agreement for Stellar KLH™ in the future.

    About Amaran Biotechnology, Inc.

    Amaran Biotechnology, Inc. is a privately-held Taiwan biopharmaceuticals manufacturer. Amaran is engaged in the business of designing, developing and manufacturing pharmaceuticals and biotechnology products, including KLH-conjugated active immunotherapies such as OBI-822, the lead immunotherapy product of OBI Pharma, Inc. OBI-822 is a Globo-H-KLH conjugate active immunotherapy under Phase 2/3 clinical evaluation for the treatment of metastatic breast cancer.

    Like(0)

    • The Obi-822 partnership with Amaran and their Obi subsidiary is certainly no surprise, but further evidence of a solid and growing future for SBOTF. KLH continues to be a key component in immunotherapy compounds and Amaran wants to lock in the best and purest form of KLH in the world–very smart. I wish Amaran was publicly traded! Once some of these compounds become marketable and past the phase trials–then we’re really talking solid revenues. The pipeline of KLH based products is becoming increasingly diverse, large and solid. This bodes very well for our favorite biotech microcap. Today is another illustration of the fact that one day stock swings are virtually meaningless. Hang in there patient investors. Q1 2014 will be another excellent one for SBOTF.

      Like(0)

  122. Stellar seems to have settled into a trading range of 1.65 to about 1.95 in recent weeks and is showing a pretty nice, slow steady rise after the price took a big dip following the company presentation (guess some were expecting big news). The recent article by The Behavioral Economist on Seeking Alpha is well worth reading. He (or she) is becoming my favorite new author on SA and has pointed me toward two other tiny biotechs with big upsides and limited downsides: Xencor and Medifocus. Xencor, like Stellar, focuses on immunology (and I’m a huge fan of this field, hence my belief in Stellar). Xencor also has a large pipeline of compounds for a small company and several partnerships with larger companies. Medifocus is a nanotech company–sort of at the stage Stellar was at a couple years ago, but they already have a revenue producing product and another product in Phase 3 trials–rather unbelievable for such a tiny company. The articles are certainly worth reading.
    One of my two favorite green energy microcaps, ClearSign Combustion (CLIR) has been soaring lately after another plug by Lou Basenese and a positive article on Seeking Alpha by another author. I expect this company to soar in 2014 as I think several deals will be announced soon. My other green energy pick in solar: Natcore (NTCXF) has been going down in the past several weeks, perhaps because the skeptics believe that, despite very encouraging real world test results recently, the company still has no revenue and no deal with a larger company. NTCXF may be a bit further away from revenue production than is CLIR as CLIR has multiple paths to revenue while Natcore has more limited choices for a partnership. I expect both to eventually be huge winners. As with Stellar–patience remains a virtue. With small biotech companies that have to await the tedious FDA approval process, patience is a must. Multiple paths to success and positive test results certainly help one maintain patience and stomach stock volatility.

    Like(0)

  123. Jana B. (and all others on this blog/stock) I had mentioned PLUG a few months back and suggested that you all take a look at it. I would suggest that you look at it again now if you were not interested then.
    Hope to see you on the high side.
    (and a happy and prosperous New Year to all of us)
    By the way, I prefer a slow move rather than a fast one – it helps keep the shorts out.

    Like(0)

  124. Greetings to all Limpet Lovers, and best wishes for a happy and prosperous New Year!
    This is your resident Blind Squirrel, Jim Skelton, with some news and updates I have to share.

    Since I began this blog in mid-August of last year, much has transpired with Stellar Biotech. We’ve gone through some fast and furious times in rapid succession with events surrounding Stellar and its progress. Not to mention the wild price swings that left some in doubt of the companys future at times, others just using pullbacks to add to a portfolio. And some, like me, having made a very nice profit in a very short time frame, starting to trade at least a part of ones holdings in order to capture and bank actual, spendable profits. Whatever route you took to get from there to here was, I trust, worth it.
    Things on the blog have tapered off in the past month or so as Stellar has begun to consolidate and become something a little different from what it was just one short year ago. What was then a huge high risk speculation has morphed into something tht is more of a pure speculation now, leaving behind the “huge risk” component as I define it. With the financing deal done, the entry of Mr. Yin and his deep pockets, the addition of a few new people to the board and management, additional exposure through participation in investment conferences, the deals being struck with pharmaceuticals to provide top grade KLH for their trials and containing components for creating royalty streams if a drug makes it to market – and these are just a few of my favorite things. What I’m saying is that I believe Stellar Biotech has now entered a new phase of growth, one which will be more dependant on demonstrating actual growth top line and eventually becoming bottom line positive results. We now understand what Limpets are, what KLH is, how it can be produced, and it’s critical role in developing new drugs. We can see the business smarts demonstrated by the board in getting the financing in place, and the wisdom of choosing a quasi-partner (Mr. Yin) to sit alongside us, the investors, and provide guidance and assistance when needed. And all that without even considering the potential of an eventual positive result regarding the c,diff research.

    It’s been quite a ride, doncha think?

    Now, with all that considered, I’ve moved Stellar up a notch on my list of companies, from that highest risk category and into a speculative but with proven possibilities one. I’m now content to see it as that kind of company for now and hold a more sane level of ownership than I first did. And be patient. And wait to see where this goes over the next 3 years or so. I have high hopes that by then I can reclassify Stellar once again as a pure Growth stock, then someday maybe a Growth and Income stock. Imagine that. That’s a LONG way out there, but possible. Remember, there was a day when companies with names like Apple and Microsoft were where Stellar is today, and just look at them now. These things can and do happen.

    But with that change in category comes a change in my way of thinking about the company and what I should do now. And since I believe the big and easy money has been made, and Stellar Biotech isn’t likely to rise five-fold in 2014, I’ve decided it’s time for me to move on and find the next one that looks like Stellar did in June of 2013 and focus on that.

    So, yes, this is a farewell of sorts for me on this Blog. But with a catch.

    There have been many of you who have been so kind in your comments about my little contribution here and I appreciate those greatly. All I can say is I try to add clarity and insight as I find it, and do so in a manner that is not difficult to grasp. And try to keep hype and hope apart from the hard facts. Sometimes I’ve been successful, sometimes not so much. But I do try.

    In addition to those kind comments, a couple of you have stepped up and contributed as much if not more than I in following the saga of Stellar and making some insightful comments of your own. You know who you are. My hope is that one or all of you will pick up the reins here and take responsibility for keeping all others informed and involved. I know I’ll be watching and reading to help myself stay abreast of developments at the Company. So, who is it to be? Time to man – or woman – up, folks! There will be a lot more to tell about SBOTF in the coming months and years and somebody needs to be driving the plane and riding herd.

    It’s been an interesting time for me and I thank all who have participated here. Keep it going if you can. This is a story writ large, and the ending is far from complete.

    But you know what? Ive got a strange feeling that even though I may not appear here again, it’s possible our paths will cross yet again somewhere down the line. Stranger things have happened, and we all continue to enjoy the benefits of reading the works of Travis & Company. One helluva unique website, for sure. That won’t change So, The Blind Squirrel may not be so easy to get rid of. after all. We’ll have to see ..

    Best wishes and good fortune to all,

    Jim Skelton
    The Blind Squirrel
    “Even a Blind Squirrel finds an acorn every now and then.”

    Like(0)

  125. Stellar Biotech followers say: Thanks so much Jim and a very happy, healthy and prosperous 2014 to you and all in Limpet Land. I’m sure that several of us will keep posting re. our favorite biotech microcap and include news flashes when we become aware of them. Thanks for being the catalyst to a most interesting thread on a stock with a huge upside and what seems to be a quite limited downside (besides the volatility of the stock price). May we all have patience so that we may reap large rewards in the next three years.

    Like(0)

    • Hi AH,
      perhaps the market has already given you the answer. Just checked before I was replying to your question. Wow…had no idea that Stellar came back that strong yesterday. Lucky me, i bought a couple of thousand more of stock around 1.25 and than again at 1.29. Then I left the market up to itself. Stellar hung around 1.30 for some time and let it be. Now at 1.53 I feel a lot better.
      Anyway, really not so easy to answer your question.
      My first response would have been that there was the possibility that this January some of the outstanding warrants were being traded. So suddenly a lot more shares available on the market. But that is just one possibility.
      Whatever it was we won’t exactly know. But I was kind of prepared for it. I was almost expecting it. And it did not just happen yesterday. Stellar was kind of on a slope down for about one month now. I just did not know how long it would continue.

      Expect some up and downs again and again…hopefully lots more ups soon.
      Good luck and all the Best of you and fellow ‘limpetiers’!!!

      Like(0)

      • Stellar Biotechnologies, Inc. (“Stellar” or “the Company”) (OTCQB: SBOTF) (TSX-V: KLH), announced today that the Company has been named to the 2014 TSX Venture 50®, an exclusive ranking of the top performing companies on the TSX Venture Exchange.

        Stellar Biotechnologies is the top ranked company across all five industry sectors of the 2014 TSX Venture 50® list.

        The TSX Venture 50® is an annual ranking conducted by the TMX Group of the fifty strongest-performing companies on the Canadian TSX Venture Exchange, categorized by industry sector. The list is chosen based on four equally weighted criteria; market capitalization growth, share price, trading volume, and analyst coverage. The TMX Group, which owns the Toronto Stock Exchange and Toronto Venture Exchange, describes the winning companies as those having “shown impressive results in key measures of market performance.”

        “We are pleased to have this public market acknowledgement of Stellar’s accomplishments and growth potential,” said Frank Oakes, President and CEO. “We have a solid foundation and we continue to work diligently to deliver strong future returns to our shareholders and partners.”

        Like(0)

  126. Just found this article on Seeking Alpha:

    Stellar Biotechnologies: Low Risk Biotech Provider With Significant Upside
    Mar. 28, 2014 5:00 AM ET | 18 comments | About: SBOTF
    Disclosure: I am long SBOTF. (More…)
    Summary

    Stellar’s main product (KLH) is involved in 20 active clinical trials.
    Studies include cures for cancer, Alzheimer’s, arthritis and AIDS.
    Stellar’s valuation is only $125 mm vs. peers valued in the billions.
    (Editors’ Note: Stellar Biotechnologies trades on the TSX Venture Exchange, symbol KLH.V, with average daily volume of C$350,000.)

    Stellar Biotechnologies (OTCQB:SBOTF) (KLH.V) is the world leader in sustainable manufacturing of Keyhole Limpet Hemocyanin (KLH). Although KLH has been known as an important immune-stimulating protein (a substance that naturally induces an immune response) for over 40 years, its role as an ideal carrier molecule for vaccine antigens (substances that promote the generation of antibody and cell-mediated immune responses) against cancers and infectious agents is the basis for the fastest growing new class of drugs known as active immunotherapies.

    KLH is currently involved in a mind-bending 20 active human clinical trials where many of the world’s finest drug developers are seeking to cure dozens of serious diseases. These include Alzheimer’s, Arthritis, Cancer (over 20 different types, including a late stage 3 clinical trial for breast cancer), Lupus, HIV, MS, Asthma, hypertension, etc.

    If even one of these new drugs go into production, the world’s only sustainable KLH supply is from Stellar; they have revolutionized the KLH industry, turning this vital, natural protein into a renewable, quality resource.

    KLH

    Keyhole Limpet Hemocyanin (KLH) is a potent immunogenic high-molecular-weight protein; i.e. a substance that naturally induces an immune response. KLH is a highly effective T-dependent carrier protein that induces MHC Class I and Class II-restricted immune responses via antigen presenting cells.

    Sources: company unless otherwise noted

    Active Immunotherapy uses a patient’s own immune system by first activating then training it to recognize and kill tumor cells. This treatment may provide a viable alternative to chemotherapy or other therapies, dramatically improving quality of life.

    Please review the selected list of active clinical trials below; note that these are not all present Stellar KLH users, but we believe they will become customers upon drug approval given Stellar’s unique position.

    Potent yet safe in humans, KLH is highly prized as a critical component of certain therapeutic vaccines including ones for lymphoma, bladder, breast, colon and other cancers.

    In essence, the KLH-based drug alerts the immune system to something it doesn’t see – like with cancer (such as the sugars on the surface of cells not normally seen) or a tumor. In this way, the body’s own immune response is triggered.

    KLH-based drugs seem to work best with smaller cancers or tumors, thus would be most applicable either in early stages or, for example, after a tumor was removed, thus effecting a final cure or prevent recurrence.

    While it is still a long way away, and we recognize it would be virtually impossible to develop a clinical study, the scientific theory seems valid that a KLH-based drug could act as a vaccine and prevent cancers in high-risk potential patients avoiding the horrors associated with diseases such as breast cancer, ovarian or cervical. We are certainly hoping for such. In this regard the Asian markets offer more promise in that users are not so restricted and are willing to try preventative medicine. For example, those determined as pre-disposed to certain cancers may opt for a KLH-vaccine – recent news regarding actress Angelina Jolie’s preventative double mastectomy have brought this issue to attention.

    The growing advancement of KLH-conjugated therapeutic vaccines and KLH-based diagnostic products is rapidly increasing the demand for GMP (pharmaceutical grade) KLH.

    Source: biosearch

    Source: piercenet

    Source: Scripts.edu

    Background

    Founded in 1999, Stellar was initially funded through grants totaling $7 million from both the National Institutes of Health (NIH) and the National Science Foundation (NSF).

    Stellar has generated KLH-related revenues since 2001; its customers and partners include multi-national pharmaceutical companies, world-renowned laboratories and research centers, as well as biotechnology companies and vaccine developers.

    The Giant Keyhole Limpet can only be found on the coast between Central California and Northern Baja California. Source: klhsite.org

    Stellar specializes in the production of KLH which is refined from the hemocyanin of the rare ocean mollusk, Megathura crenulata (the California giant keyhole limpet). The extreme complexity and very large size of KLH glycoprotein make it unsuitable for synthetic production; therefore it must be purified from its natural source, which is rare and diminishing in population.

    Stellar has developed important intellectual property which relates to aquaculture technologies, spawning, selection and maintenance of the limited natural source, as well as processing, purification and engineering of specific GMP-grade stabilized formulations.

    In a fortunate stroke, Stellar acquired faculties at the Port Hueneme Naval base as part of a base closure process, which gives them direct aquaculture access to the Pacific Ocean. The Company believes this was a once-in-a-lifetime chance to obtain a facility on the coast of California having direct access to the Pacific Ocean, smack in the middle of the limpets natural breeding grounds. With all permits in place, Stellar can now provide clean, traceable KLH from native source to finished product – a world-wide exclusive.

    In 2012, Stellar Biotechnologies achieved an industry milestone in aquaculture science by successfully controlling the complete life cycle of multiple generations of the Giant Keyhole Limpet.

    This section is very important:

    We are aware of only two other companies in the world that provide KLH in GMP form. One, a Fortune 1000 company, Sigma-Aldrich, already uses Stellar’s KLH… the other literally sends divers into the ocean to capture the limpets.

    They extract the KLH – then the limpet dies.

    Source: Stellar

    Since GMP KLH (in clinical trial volume) sells for between $20,000 and $50,000 per gram, that is one valuable limpet. However, we do not believe ocean harvesting is a sustainable model and will most likely quickly exterminate the limpet population if even one new drug goes into production, especially since there is no batch control and harvesting is subject to natural events. In fact, we would expect the State of California to ban or restrict wild limpet harvesting before such a tragedy, as with the abalone or sea cucumber.

    For this reason, Stellar’s approach, although still perhaps a year or two away before the major demand appears, is unique in that 1) their patented process removes the KLH without killing the limpet and 2) they already have patent-pending re-production process and multi-generation breeding success at the aquaculture facility. It would take 5 to 10 years to replicate this facility, given the difficulty of permitting in California, and probably $20 million, giving Stellar a considerable advantage.

    C. Diff Immunotherapies

    Clostridium difficile (C. diff) is a major and growing cause of mortality and morbidity in hospital patients. It’s a bacteria which is normally present in the intestine, but which can overgrow as a result of antibiotic use. It causes severe diarrhea and life-threatening intestinal conditions such as colitis.

    C. diff related treatments in the U.S. and Europe are estimated to cost a total of over $7 billion. Effective treatment would not only provide a substantial revenue stream for Stellar, but also bring relief to the 300,000 new cases that hospitals are seeing annually, up three-fold from just a decade ago.

    The patented technology allows Stellar exclusive rights to develop, manufacture and sell human vaccines to treat C. diff infections, from the Stellar technology.

    The potential market size of this application alone would most likely be worth 5x Stellar’s current $128 mm valuation.

    Amaran Biotechnology Partnership

    Taiwan-based Amaran invested $5 million in Stellar’s September 2013 financing. KLH is a key ingredient in OBI Pharma’s OBI-822 Active Immunotherapy drugs:

    Metastaic Breast Cancer: Phase II/III trials in U.S., Taiwan, South Korea, India, Hong Kong.
    Ovarian Cancer: Phase I/II for ovarian cancer in Taiwan
    From the OBI website: “OBI is also devoted to developing next generation active immunotherapies for difficult to treat cancers, including lung, prostate, pancreatic, stomach, and ovarian.”

    We will have more on this specific trial in a further update, however, this could be the 1st “blockbuster” for Stellar, and we suspect this is the reason Amaran invested – a smart move to keep themselves ‘close’ to the only supply for such a critical ingredient.

    Near-term catalysts and valuation objective

    In addition to news from over 20 active clinical trials, from our conversations with management, we believe Stellar is active in seeking additional corporate partners. As the new class of therapeutic vaccines moves towards market, we would expect increased sourcing interest. Certainly, Stellar is getting close to achieving a “critical mass.” As you can see in the chart below, the commercial potential is understandably enormous.

    Given Stellar’s current 78 million shares issued equates to a valuation of $125 million, and that the potential revenues from even one new drug could be over $100 million…and given that biotech companies routinely sell for 10 X sales, our estimate of “billion dollar potential” may turn out ultimately as very, very low.

    Even one drug showing evidence of an impending move from clinical trial to manufacture would be enough, in our opinion, to raise the valuation to the $300-$500 million range. This could occur even if a smaller drug, such as Celldex’s compound targeting glioblastoma (an aggressive form of brain tumor), currently in phase 3 trials, were to be approved. Although the KLH-related revenues to Stellar may be only $10-$20 million per annum, we believe it adds to the overall creditability and encourages additional development.

    In the chart, please note the market size for some of the KLH-based drugs under clinical trial and the estimated revenues for Stellar. Our point being, only one or two of these is needed to be a “company maker.”

    For some reason, Stellar’s IPO was via entry into the Canadian markets and the stock languished mostly unknown until 2013, when it finally started moving. In 2014, we expect Stellar to list their shares on a US exchange – basically as soon as the stock trades over $2. We would encourage investors to buy ahead of this event as most biotech funds and investors do not buy shares listed on the Canadian venture exchange. We suspect Stellar could really pick up some traction and the shares move to the $3 level in short order.

    Indeed, we saw Stellar present to a full house at a recent institutional investor conference and suspect they will have an increasing professional audience.

    The early bird gets the worms

    Many years ago one of our clients funded a start-up called Cheniere Energy (LNG). Although Cheniere is worth $12 billion today, we will vouch that, in the early days, there was no “blessing” from CNBC’s Jim Cramer and nary an “analyst” in sight.

    Cheniere shares have gone from $1 to $54 since the ’08 crash, primarily because they locked up the best-located properties for a new, unknown industry – the manufacture and transport of liquefied natural gas . By the time the market and competitors caught on, Cheniere owned the best property; the majors (like Chevron) had to come and grovel for a deal.

    Sure, natural gas is a world apart from curing cancer, Alzheimer’s, or AIDS, but Stellar is similar in that they have obtained a prime physical location and an early-mover advantage, which puts them at least 5 years ahead of any sustainable competitor. Stellar thus could become the “go to” source for an entire new class of drugs, in addition to a “play the field” approach for investors.

    Risk Factors

    Because it’s too complex to be synthetically created, KLH must be harvested. Stellar has the sole aquaculture facility for the GMP production of KLH; however, it is possible that a synthetic method to produce KLH will be created which could dramatically affect Stellar’s future sales and earnings. In addition, other competitive aquaculture facilities may be developed, and even though Stellar’s limpets are raised in a safe, out of ocean environment, they still are living creatures and may be subject to disease.

    Probably the biggest risk to Stellar could come from an Asian or other competitor who steal some limpets and try to raise them in Asia. However, Stellar’s proprietary production process tracks every gram from every limpet and provides a detailed record for GMP standards, and we do not think legitimate KLH users or Big Pharma will be buying black market bootleg supplies.

    The biotech industry has had a remarkable run for some time and all bull markets end. This could be disruptive to Stellar’s share price. However, our thesis for investing is that Stellar’s valuation, compared to any peers, is so low it should do well regardless over the next several years as more clinical trials morph into drugs. In this regard we think it highly unlikely that all 20 clinical trials fail, but it could happen and also some sort of controversy could arise as part of these clinical trials.

    (click to enlarge)

    Stellar’s shares have been consolidating and trade with good volume in the U.S. – source: StockCharts

    Conclusion

    Stellar is an entirely different company than when we first looked at them 3 years ago; progress has been enormous and we see no reason for that to not continue.

    Stellar has a unique, proprietary niche within the biotech industry – as the world’s sole sustainable KLH provider, an essential ingredient in a whole new class of drugs.

    With nearly $17 million in cash, Stellar is in a fine shape as the monthly burn rate is only $400K-$500K – they are not a cash guzzler. Stellar does not pay for the clinical studies involving the KLH-based therapies, which we believe offers investors significantly less risk than peer biotech companies.

    In the near term we expect these drugs to move forward. We also believe investors have a natural bridge ahead, in that at $2 USD the shares should qualify for a full US listing, thus opening Stellar to a whole new world of professional investors. We could envision a rather rapid ascent (upon US listing) to $3 – given comparable biotech valuations – and given that Stellar is the world’s exclusive key supplier in a whole new class of drugs.

    With only 78 million shares outstanding, our $7 target price is a market valuation just over $500 mm, which is a price where we ultimately believe one of the dozens of cash rich biotechs – with inflated shares – would seek to own such a valuable supply; a likely exit, in our opinion.

    Biotech investors may wish to take some profits in the more richly-valued names and allocate the capital into Stellar. The next two years look promising, whichever way the market goes.

    Like(0)

  127. The new guru of biotech on GumShoe does not think SBOTF is a good investment as he is not a KLH fan and sees it mostly failing in trials as a catalyst. I held out for a while and argued all the “long” points but he continued to research and does not like the long term prospects for Stellar. He knows a lot more about microbiology and medicine than I do so I got out several months ago and invested in BNIKF as my main microcap.
    Here’s another tip–if you can get in DRTX tomorrow morn–do so. It should go way up with a positive AdCom for its antibiotic Dalvance. I see the odds of Dalvance getting a positive vote north of 90%.

    Like(0)

    • I’m still long SBOTF. It is already proven highly successful as a catalyst. Will one of the 20 trials it’s now involved with be successful. I dunno! But if it proves efficacious Dr. KSS believes someone will learn how to synthesize KLH. That might concern me if I was Stellar’s CEO, but not as an investor. No one will spend the time and money to try to develop it until KLH proves to have a large market. When KLH proves to have a big market, SBOTF will skyrocket. Also if KLH is used as a catalyst in a successful trial, is approved, then the company decides they don’t want to use KLH — maybe because of the price. They go to the FDA and say I want to use this cheaper catalyst — OK? Will the FDA say — sure no problem change it any way you like!. Not sure, but I don’t think so.
      Additionally California was concerned about biotechs ravaging their coastal aquaculture. That’s why Cal. and NIH gave grants to Stellar to develop a sustainable way to extract KLH. They have the facilities. They have patents. They appear to have a pretty good moat.
      Lastly even with the run up in Sept. there have been no insider sales. Always a good sign.

      Even though I work for a physician, I have limited scientific knowledge. And my investing record is spotty at best. This is a risky investment, and I’m probably totally wrong. But I’m sticking with it for a while.

      Like(0)

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

What These Icons Mean

  • The user who posted this comment is a Stock Gumshoe Premium Member (also known as an "IRREGULAR").
  • This user regularly writes articles for Stock Gumshoe. They may or may not be the author of the current article.
  • This user's comments have been "liked” by at least a few members of the Stock Gumshoe community.
  • This user has commented widely, with input that has been liked enough to earn a two-thumbs-up rating from other readers.
  • This is the highest rating a user can get. They are among the most respected commentors of our community.