Cabot’s “$20 Biotech Stock to Hit $48” (Plus Some Personal Buys)

Checking out a Cabot Small-Cap Confidential teaser for the Friday File

By Travis Johnson, Stock Gumshoe, June 21, 2013

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I’ve got a couple quick personal portfolio updates to share with you today, including an add-on warrant buy, but first I thought you might enjoy a quick look at a teaser ad for one of Thomas Garrity’s picks from Cabot Small-Cap Confidential — they’re promoting this pretty actively right now as a “$20 biotech stock to hit $48,” as their innovative medical device gets approval to treat a much larger number of patients.

So what is it?

Spoiler alert: the stock turns out to be CSII — but let’s look into it Gumshoe-style … here’s the tease:

“$20 Biotech Stock to Hit $48

“All thanks to its revolutionary medical devices system that already delivered 140% gains to date….

“This Could Be an Easier Double Than The 974% Gains We Made In Monster Beverage”

They describe their strategy/philosophy of stock-picking thusly:

“Here at Cabot Small-Cap Confidential, we have found that the secret to profitable investing is to invest in game-changing technologies that not only stand in the path of growth but revolutionize entire industries.

“The reasons these companies have been so lucrative for us is they (1) change the way an entire industry does business and (2) have proprietary technologies that right from the beginning give them such a monopoly-like market share that few competitors can ever catch up.”

And tell us that this gives you a chance to invest in stocks that might be the next, Netflix, or Apple, to name a few of the examples they throw out.

Then we start to get details:

“Just like Monster Beverage’s breakthrough natural drink products revolutionized the beverage industry, this small-cap medical juggernaut is doing the same thing for the treatment of heart disease.

“With heart disease the leading cause of death for both men and women, this is one medical stock on a growth trajectory that could easily surpass the big profits we made in Monster Beverage.

“What makes me say so?

“Because this company’s treatment for Peripheral Arterial Disease (PAD), which will affect one in 20 Americans in their lifetime, could make heart angioplasty obsolete.”

OK, so that’s a nice big market — what’s the technology that’s shaking things up, and that has already driven the shares of this stock to more than double, with more (so they say) to come?

“Unlike angioplasty, which uses a metal mesh to inflate and stretch traumatized ...

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