Yesterday we suffered through a long teaser pitch for “Hyperspeed Moon Shot” ideas from a new Australian newsletter called Revolutionary Tech Investor…
… but we still didn’t manage to slog through all the growth stock ideas Sam Volkering was teasing.
So today we’re on the case to sift through the clues for a couple more of those “Hyperspeed Moon-Shot” stocks.
(Part one is here if you missed it)
We’ll jump right in, here’s the next “moon shot” idea Volkerling pitches our way:
“Hyperspeed Moon-Shot #2
“Compounding breakthroughs in stem cell biology, pharmacology
and gerontology to invent surgery-free medicine…
“I have an early-stager for you now… it’s based right here in Australia. But it has the potential to blow Dendreon clean out of the water…in terms of what it’s doing, and what it could make early investors…
“Much like Google off-shoot Calico, this little Aussie company’s moon-shot is ETERNAL LIFE…
“The Australian pioneers I want to introduce you to are closing in on the answer to the problem of heart failure.
“Heart attacks weaken the heart muscle. That’s why 25% of people who have a heart attack suffer another inside five years.
“The solution is in growing new muscle cells within the heart itself.
“This would, in effect, deliver a brand-new heart, and repair the kinds of dysfunction seen in coronary disease and stroke.
“It’s the equivalent of a heart transplant WITHOUT surgery…”
So … that sounds like they must be talking about one of the stem cell companies, since many of the stem cell researchers have focused on repairing and rejuvenating damaged heart tissue. But which one?
A few more clues:
“In short, scientists at this firm are closing in on molecular technology that could target, heal and regenerate damaged cells in the human body.
“Take the test results this Aussie firm has seen with those suffering from chronic back pain (emphasis is my own)…
‘Preclinical trials showed that a single, low dose of [the company’s molecular technology] into severely damaged intervertebral discs resulted in dramatic reversal of the degenerative process, regrowth of disc cartilage and sustained normalisation of disc pathology, anatomy and function.’“
So who is it? Well, this firm is quite a bit larger than those teased earlier in the ad, it’s Mesoblast (MSB in Australia, where most of the trading takes place, MBLTY for the 1:5 sponsored ADR trading over the counter in the US).
I’m writing to you from high above Iowa at the moment, on my way to Las Vegas for the Value Investing Congress (I’ll be covering the ideas I learn about for the Irregulars for the rest of the week), and thanks to the miracle of airborne wifi I can get these words out to you… but the service is so slow that I can’t research the companies very fully or get into the presentations and data on the company. I can just tell you that it’s an interesting firm largely because they’re trying to mass-produce stem cell-type therapies — my understanding is that they’re not creating your own personalized stem cells for you, they’re creating “generic” treatments that are similar that have similar regenerative effect.
I haven’t even been able to get their latest press release to download, I’m afraid, but you can see their interim filings here. They’re not profitable, it looks like the stock has been pretty beaten up (unlike most biotechs, they haven’t doubled in the past year … and the stock is near the bottom of their 52-week range), they do have some cool looking science, and beyond that I’m just guessing … so I’ll open up the floor to you, the great Gumshoe faithful, to research this one and let us know if you like the cut of their jib.
And one more for you today on this decidedly non-value-stock thread before I turn the week over to talking up cash flow and actual earnings and hidden assets and such in the world of value investors … this second one’s about 3D printing, which we enjoyed for the first manic run a couple years ago but were frightened out of before the second manic run more recently. It’s probably beyond the scope of today’s article (and the strength of my internet connection) to reassess all the stocks in the sector, but we can at least name the one Volkering is teasing. Here are his hints:
“Hyperspeed Moon-Shot 4: Beyond 3D Printing…
“3D printing on the verge of making it into the mainstream….
“But this next moon-shot is taking 3D printing technologies and COMPOUNDING with recent breakthroughs in biotechnology.
“Using their first prototype bio-printer this company has already printed a fully functional 3D blood vessel.
“After this milestone, the US National Institute of Health awarded this firm a funding grant to continue their pioneering research.
“Since then they’ve made huge progress.
“As scientists noted last year:
‘We have achieved excellent function in a fully cellular 3D human liver tissue. With (our) 3D bioprinted liver tissues, we have demonstrated the power of bioprinting to create functional human tissue that replicates human biology better than what has come before’ ….
“… the bioprinter they’re developing is able to replicate the multi-layer structure of human tissue…and is able make sure each layer then contains the relevant cell types.
“The result is tissue structures that ‘can function like native human tissues’.
“What does this mean?
“Think of the ability to print fully functioning ‘good as new’ kidneys, muscles, bones, ligaments…and even a heart!”
Well, again I can’t tell you a lot about this one, can’t get at the details and I haven’t looked at this company in quite a while … but I can tell you that they’re back on this side of the globe with this teaser: this is Organovo (ONVO), which has been a hugely volatile stock over the past couple years (and has been teased before by at least one or two newsletters), and is indeed in the “3D printing of body tissue” business.
ONVO has been a hotly debated stock for pretty much its entire existence in the public markets — it surged on investor enthusiasm about two years ago, when 3D stocks were all hot stuff, then collapsed immediately and has spent the interim gradually climbing back up. Recently, with some cynicism again creeping into the market regarding most biotech and momentum stocks, it fell down from the $9-11 range where it traded for most of the last several months and is back under $8 again. Like most stocks of this type where the success or failure of their product won’t be known for many years, you can’t really give the stock a valuation based on anything real — you just have to accept that if they keep developing their technology on a timeline to broad acceptance and approval by the regulators and the medical community, the stock will probably rise… and if stumbling blocks or serious problems arise, the stock will probably collapse.
How’s that for wisdom for you?
Sorry I can’t tell you much about these stocks from 38,000 feet, but I can at least fire out these Thinkolator results for you and give you a chance to research them on your own… let us know if you have any thoughts or opinions to share about Organovo or Mesoblast with a comment below.