By Jim Skelton
The Blind Squirrel
”Even a Blind Squirrel finds an acorn every now and then”
Thought I’d follow up my comments re ”Great Expectations” now that the conference presentation by Stellar Biotech has concluded.
If you missed hearing/seeing it, go to the SBOTF website and do so.
First, as I suggested in that previous post, no ”news” at all was presented. These conference presentations are used for publicity, not announcements. So no surprises there. In fact, since the presentation concluded about 1 1/2 hours ago, the stock price has dropped a penny. Whoopee doo!
But it was informative. Here’s a few things that I had cleared up for me about which I wasn’t previously totally sure.
(1) Stellar IS NOT the sole provider of KLH to the market. There are two other companies that also can do so. One is of some size, but get this – they buy the KLH from Stellar and finish the ”distillation”, then sell it to the end user. So they are, in fact, a customer of Stellar and a source of revenue to us! The other company is a tiny little thing in Germany whose product is derived from the Limpets they harvest from the ocean and is of dubious quality and purity. No real competition there.
(2) There is no way a Limpet can be harvested and the blood drawn without killing the animal by any company other than Stellar. And we’ve got patents, issued and pending, on that process. Claims to the contrary need proving. This leads me to another statement:
(3) Since the Limpets die after blood extraction, and Stellar is the only company that has patented processes which can prevent this, why was there no statement or comment about the possibility of the environmental community starting to look at the possibility that continued harvesting from the wild could lead to an ”endangered species” classification for the Limpet? If they did so, and such a ruling was made, then Stellar would truly be the only game in town. I’m wondering why this idea wasn’t raised. Perhaps – and this is the only conclusion I can draw – is that, as of today, no such fuss has yet been made.
(3) Stellar continues to develop partnerships and alliances with Pharmas to be their sole provider of KLH. In fact, it was said that several companies have already come to ”us” requesting agreements to provide KLH for their use in continued clinical trials and bringing to market various vaccines and drugs. These pharmas want/need a reliable, sustainable source of quality KLH and recognize Stellar as the go-to guys for it. This can only be a good thing for the future.
(4) Most of the vaccines and drugs undergoing clinical trials at present involve treatments for various cancers – breast cancer being one mentiond that caught my attention. Other diseases and afflictions such as Alzhiemers seem further out there.
(5) Although I couldn’t quite hear the comment, it was indicated that a sizeable chunk of new revenue was anticipated to be coming on line in some 12 to 14 months. Other, larger sources – those tied to drug approvals and retail sales – are 3 to 5 years out.
(6) I was disappointed when the Q&A part was conducted. As best I could hear – the mics weren’t set up to catch the questions clearly – there was only one person that asked anything at all. Just one. And from the accoustics of the room, it didn’t sound as if this was a very large presentation room at all. So maybe not many attendees. And the timing of Stellars presentation – 12:05 PM – coincides exactly with what many people think of as LUNCH! So maybe, absent any previous interest, some attendees had wandered off to eat and missed the presentation. Unfortunate. But I’m just speculating here. However, in response to part of a question I could not hear, a little blurb in reply came out when he said ”Our balance sheet will look a lot better by the end of the week,” What was meant by that I wonder. We’ll see.
(7) No mention of the financing deal recently concluded was made. Perhaps the 12MM cash will hit the books this week and that’s what was being alluded to. Sure wish we know who or what that source is. An individual? A BDC? A venture capital firm? My rich uncle? Just curious, but in the end it doesn’t matter.
My takeaway from it all was that we got what we were supposed to get; exposure and a better understanding of what Stellar Biotech has going on. And what we can hope to see in the coming months and years. Absent some big deal being struck or some major event occuring, I think the ”easy money” has been made here. What comes next will be very nice indeed, but days of seeing 20% pops to the upside with no pullbacks are going to be far fewer if at all. Growth is coming and I still can see a day when we’ll hit up the ticker and see a Bid price of $5.00 – or more. But not tomorrow. Not next week. But someday. As for me, I’m going to double or perhaps triple the shares I currently own over the next severeal weeks, then just sit pat and let the wheel spin, the ball drop, and hopefully rake in a boatload of greenbacks. But that’s just me. I’m a gambler by nature, an optimist at heart. And I’ve learned to love Giant Keyhole Limpets!
Best Regards to the Gumshoe Nation! This is the Blind Squirrel, signing off until next time ..
By Jim Skelton