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“Minting Millions from the Magic Molecule” (Nick Hodge)

Checking out a recent teaser for Hodge's Early Advantage and the Outside Club

“How to get this $35,000/gram miracle cure for just $0.65” — that’s the subject line of the latest teaser ad we’re reviewing … how can you resist?

The folks at Angel Publishing appear to be spinning off some of their newsletters, with Nick Hodge headlining, into a new little entity called the Outsider Club — which, as far as I can tell, is just another of the dozens of interrelated newsletter brands that have been built by Agora-affiliated publishers over the years. Some of them catch on and build big mailing lists, some of them quietly disappear.

But this pitch is not really just from this “Outsider Club”, it’s from Nick Hodge’s pricey newsletter called Early Advantage, which has been around for many years at Angel Publishing — it used to be called Alternative Energy Speculator until they realized that particular subsector was losing investor interest a couple years back, and it has called some interesting stocks to our attention, including Westport Innovations about five years ago before they were listed in NY.

So I tend to pay attention to their new picks even though some of the tiny ones end up being crash-and-burn disasters — my readers keep asking about them, and they pick so many tiny stocks that their attentions have a tendency to drive big spikes in the share price. I expect we’ll see the same thing once again here, since this latest teaser pick (which I mentioned a couple weeks ago, but haven’t gotten to looking at closely until now) is even smaller than most.

Of course, such spikes up in price are usually followed by a collapse if the story doesn’t play out as cleanly or as quickly as the ads always seem to imply, but they can at least be fun to watch.

So what’s Hodge’s latest darling stock?

Here’s the teaser pitch:

“… for 5+ years, a team of America’s foremost scientists has been hard at work in a laboratory… working on a Nobel Prize-worthy discovery.

“And it ALL revolves around the giant keyhole limpet… or more simply, the sea snail.

“It’s something you’d ordinarily see in a sci-fi film. But this is very real.

“And if you understand why this sea snail is so crucial — and what these scientists discovered while burning the midnight oil — you’ll be on the fast track to 300x your money profits….

“What was unearthed in a Ventura County lab is something that will alter the way the medical world operates forever…

“Few discoveries in history have had the kind of impact this one will have. It’s simply so game-changing, examples of past scientific developments may be completely pointless.

“We’re treading on truly unheard-of profit territory here.”

Well, we can at least rest assured that the fertile fields of hyperbole are growing nicely in Baltimore, MD — how can you not want to know about “unheard-of profit?”

Even if we know that the reality never matches the hype, there’s still that little part of our brain that says, “what if he’s even just halfway right?”

He compares this advancement to the big antiviral discoveries made by Gilead Sciences (GILD) back in 1992, and shows the dramatic stock move from 50 cents or so up to the low $20s — he doesn’t mention that it took 15+ years of patience and fortitude to enjoy those gains, or how many other companies seemed to have similarly exciting discoveries in 1992 and are now bankrupt, but you get the idea — biotech is one of those areas of the market where huge gains are possible. And even though the fact isn’t hammered into your head everyday the way those potential gains are, you probably area also quite aware that with 1,000%+ return potential you almost always get a heightened risk of 100% losses.

So what is this “Magic Molecule” that’s supposed to make us rich?

Here’s some more from the teaser ad:

“The world-shaking discovery… REVEALED

“For decades now, medical companies around the globe have heavily relied on a compound known as Keyhole Limpet Hemocyanin (referred to as KLH — or what I call the “magic molecule”).

“That’s a fancy name for what essentially amounts to sea snail blood…

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“KLH only comes from one place: the giant keyhole limpet, aka the sea snail I showed you a picture of earlier. And this sea snail lives in one very specific part of the world, off the coast of Central California….

“Here’s the key: There are only 100,000 of these creatures left in the wild. Once the KLH has been extracted from them, they die.

“In other words, the hundreds of drugs that rely on KLH — the drugs that assist patients who suffer from cancer to Alzheimer’s to drug addiction — are in grave danger of extinction… along with this specific species of sea snail.

“None of this may seem very exciting, but get this: Because it’s so scarce, the KLH extracted from these sea snails sells for between $35,000 and $900,000 per gram.”

OK, so that’s our little “Magic Molecule” — Keyhole Limpet Hemocyanin. I confess that I had never heard of it before taking a quick look at this story about two weeks ago.

And yes, the Keyhole Limpet was featured in Popular Science as an enabler of a cure for cancer about 18 months ago — an article that is worth a quick read, and that mentions the company that’s farming these mollusks in California to extract their blood.

So is that the same company being teased by Nick Hodge? Let’s quickly check a few more clues:

“Once single company — whose shares currently trade around a mere $0.60 as you read this — is the ONLY company that knows how to extract KLH without killing the sea snail. And they have a patent on it.

“So, not only does no one else know how to do this…

“But this tiny company also has a patent pending for a process in which they raise the sea snails on land.

“That’s what happens when you have the likes of these guys working in your Ventura County laboratory:

  • The board-certified immunologist who, together with his team at UCLA, was the first to discover AIDS in 1980; and
  • the Professor of Molecular Genetics and Biochemistry at UC-Santa Barbara — named one of the 50 leading technology pioneers of 2006 by Scientific American.”

So … yep, this is Stellar Biotechnologies, which is listed on the Venture exchange in Canada at KLH and also trades over the counter in the US at ticker SBOTF (with low volume in both places, this is a sub-$40 million stock and $100,000 in money flowing in or out could dramatically impact the stock price).

And yes, Stellar is the leading (and practically the only, they say) company that’s sustainably cultivating Keyhole Limpets on land, in a controlled environment aquaculture farm/lab, and extracting their blood for use in vaccines. Their current capacity is about one kilogram of blood per year, which doesn’t sound like a lot — but apparently the amount required for each dosage of a vaccine must be infinitesimally small.

KLH is really a vaccine conduit, not a curative compound in its own right (there are other mollusks that have been touted as miracule cures, like the anti-bacterial and cancer-fighting properties of some sea snails that have been in the press in recent years) — it’s a large molecule that’s safe for humans but has a strong immune response, here’s how they describe it:

“KLH is an important immune-stimulating protein used in wide-ranging therapeutic and diagnostic markets. Potent, yet proven safe in humans, KLH operates as both a vital component for conjugate vaccines (targeting cancer, autoimmune, and infectious diseases) as well as an antigen for measuring immune status. Stellar Biotechnologies was founded to address the growing demand for renewable, commercial-scale supplies of high-quality, GMP-grade KLH. Stellar has developed leading practices, facilities and proprietary capabilities to address this need.”

So apparently this KLH stuff is a great base for vaccines — it’s part of a tested compound for dozens of clinical trials right now, including at least a few active trials where they have supply agreements with pharmaceutical companies. You can see several presentations here about their business and technology. The Wikipedia page explaining this protein gives a pretty good broad overview here.

And the stock has climbed nicely this year, following their listing on the OTCQB and rising awareness among US speculators and plenty of news releases from the company about their aquaculture achievements and the progress of potential vaccines for cancer and other diseases, along with, of course, this recent attention from Nick Hodge. This isn’t the first time the company has been a stock market darling, that Popular Science article came a year after the surge of excitement that drove the shaers from 20-30 cents to well over a dollar for a few weeks in late 2010-early 2011, but we’re broaching new highs for the year again here in the 70 cent range.

That means Stellar Biotechnologies now has a market cap approaching $40 million — laughable for the kind of potential market they’re talking about, with hoped for royalties and other revenue bringing in hundreds of millions of dollars a year perhaps as soon as 3-5 years from now (that’s from one of their investor presentations), but very large for a company that has negligible revenue and posts losses in most quarters of roughly a million dollars. They’ll also have to raise money by selling stock, I expect, if they haven’t made any big deals with pharmaceutical companies by late this year.

But that’s probably the immediate upside potential, beyond the possibility that they might get exciting news from one of the current KLH vaccine trials that leads to a rapid increase in demand for the molecule — they say they are “actively exploring multiple, current avenues of co-involvement with 7 of the 15 largest biopharma companies.”

And for a $40 million company, a joint venture deal with a larger pharma company can easily provide enough cash to keep them going for quite a while — and spur some increased investor love.

I have no real sense for what the market for this KLH will be in the end — certainly demand could be very high if there are effective vaccines for Lupus, Breast Cancer or Rheumatoid Arthritis that use this molecule, but it’s not clear to me what the physical capacity is or what the pricing would be in that world if higher demand… or whether the mass market demand for this compound would lead to new ways of synthesizing it and therefore sidestepping the limited capacity of Stellar’s mollusk farm. They have managed to get these creatures to reproduce in captivity, so they’re managing multiple generations of them and can increase capacity over time, but I can’t imagine that they can increase capacity all that quickly.

The only folks I saw actively selling and quoting prices for KLH for labs were selling it for about $10/mg, I have absolutely no idea whether their variety is as good as Stellar’s (or maybe it is Stellar’s, I dunno), but at that rate a kilogram, Stellar’s annual capacity, would be worth $10 million. If Hodge is right and this stuff is good enough that it sells for $35,000-900,000/gram, then that means their annual kilogram of KLH production could pull in somewhere between $35 million and $900 million a year in revenue.

So that’s a pretty wide range, potential revenue somewhere between $10 million and $900 million … which doesn’t count any royalties they might get for their proprietary products or from joint ventures if they really proceed with developing their own compounds for clinical study, as they indicate they might.

So far, though, revenue is more like $250,000 over the last four quarters … which means the low end of that estimate would be hugely dramatic growth for Stellar. Of course, whether or not they can ever reach that low-end guess is an open question — it looks really interesting, I can see that they’ve invested a lot (including government grants) to build this sustainable aquaculture and processing capacity, but with science still proceeding and the vaccine trials still pretty early, I can’t even halfway guess what the company should be worth or whether their product will stand out as a crucial component and see increased demand even if prices rise.

But that’s the long-term imagining about Stellar’s future — most likely, the stock will bounce around like a cork as news flows regarding any of their clinical trials or joint venture deals with pharmaceutical companies, so I wouldn’t expect to see the shares trade on some fundamental valuation based on revenue or earnings anytime soon. File this under “speculation” and be prepared for a bumpy ride if you decide to get on board, I expect that Nick Hodge’s attention (and the attention of our merry band here at Gumshoe Nation) will make the stock bouncy even without any fundamental news (average trading volume combined in Canada and the US is not often much more than $100,000, which is very, very light — don’t count on getting out of a position at a reasonable price if you want to sell in a hurry).

If you’d like to hazard a guess as to what the stock is worth, or whether it’s worth a nibble, feel free to use the friendly little comment box below.

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James
James
August 21, 2013 9:20 am

Here’s a copy-and-paste from http://www.piercenet.com/browse.cfm?fldID=01010102, which has information on a product from Thermo Scientific:
“Imject Mariculture KLH (mcKLH) is KLH that has been harvested from limpets grown in mariculture rather than captured from the wild.” I wonder if they get it from Stellar Biotech or if they do their own mariculture. Thermo Scientific sells mcKLH for $183 for 100 mg, equivalent to a price of $1830 per gram. That is lower than the $35,000 per gram cited in the teaser. It’s possible that 100 mg of mcKLH has only a little bit of pure KLH in it. But Sigma-Aldrich is specific that 20 mg of KLH in 100 ml of a solution is $72.20, equivalent to a price of $3610 per gram, 10 times less than the teaser price.
I could not find a 10-K or 10-Q in the SEC database. I wanted to read the Risks section.

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James
James
August 21, 2013 9:48 am

Travis, thanks. I see that the 20-F stated a risk at the end of the fiscal year that ended in Aug 2012 about SBOTF needing financing and uncertainty about whether the company could continue as a going concern.

I see at http://biosyncorp.com/klh/why_use_biosyn_klh/ that biosyncorp takes keyhole limpets from the wild, extracts blood, and returns them to the wild, inconsistent with the statement in the teaser that keyhole limpets are killed by other companies. It says “biosyn returns the animals back to its natural habitat, as it is a humane approach as well ensures that the animals recovers readily…”

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James
James
August 21, 2013 10:34 am

Thanks again, Travis. I see that Frank Oakes of SBOTF also got a $1,000,000+ award from the National Science Foundation to do work from 2009 to 2013 on culturing larvae of the keyhole limpet. http://www.nsf.gov/awardsearch/showAward?AWD_ID=0848952
Impressive. Maybe Thermo Scientific Pierce decided they could do mariculture too based on SBOTF’s work.

Fred
Member
Fred
August 21, 2013 11:30 pm

Trading has been halted in KLH.V, and SBOTF; I’ve heard from the company:

Dear Mr. DiFrancesco,
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 for your interest in Stellar Biotechnologies.
Paul D. Reyes
Stellar
BIOTECHNOLOGIES
332 E. Scott St.
Port Hueneme, CA 93041
InvestorRelations@stellarbiotech.com
stellarbiotechnologies.com
klhsite.com

I’m anxiously awaiting clarification; speculation of a buyout is rampant, but nothing official, yet.

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Henry
Guest
Henry
August 23, 2013 9:15 pm

Ha, So much for a buy out. It was just the company trying to make some quick bucks with an agent putting a time lease on their stock for $1.05 for three years with 12 mil upfront. What a let down..

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Fred
Member
Fred
August 24, 2013 1:28 am
Reply to  Henry

Yes, I was disappointed in the way Stellar locked us investors in the building, before they set it on fire. The stock gapped down $0.36, surprisingly, it bounced back $0.19, today. But I still don’t like the underhanded way they did this. Contrast that with the way Elon Musk, of Tesla, one of my best performers, does an SPO: he announces a week in advance that he’s doing an SPO, buys many of the shares himself, and in short, is honest with investors. In response, the stock jumps $20. I also wondered, if they’re so anxious to sell their shares for $1.05, WITH a warrant, why the heck doesn’t the company offer shareholders an opportunity to buy at those levels? Stellar just made themselves look bad.

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michael
Guest
August 24, 2013 3:36 am

At. 1.329 are we really complaining

theblindsquirrel
August 24, 2013 4:15 am

Deborah, et al:
Yesterday you asked me if I knew for certain what claims Nick Hodge made in his original teaser about Stellar Biotech, especially regarding any comments concerning their mariculture operations (“Farming”) and being an exclusive provider of KLH to the medical and pharmaceutical industry. I promised I’d review that original tease, this time paying special and close attention to what was being said. Sometimes we get distracted by a part of a statement and overlook a few other words that, in the end, have signifigant impact on the real meaning.
I’ve done that and below you’ll find a few excerpts from the presentation. Direct quotes are in parenthesis, paraphrased are not.
If you or anyone wants to watch the video directly, go to http://www.angelnexus.com/o/web/49044
to view. Note: this presentation runs about 40 minutes in length. The first 20 minutes or so is the actual company tease. The last 20 minutes the pitch to get you to subscribe to Hodges’ advisory service, Early Advantage. This costs $499 for a year. Watch that if want but there is no additional info on Stellar Biotech presented in that segment.
Here goes:
(1) When blood is extracted from the Giant Keyhole Limpet, it dies. There is no mention of any company that is harvesting Limpets from the wild, extracting the blood, and then returning them to the colony where they recover. This contradicts the claim by the other company involved in this that they can and do return the animal to its natural habitat where they recover and live on.

(2) “KLH is too big and complicated to synthesize” – A quote attributed to an article in Popular Science, the validity of which is not known. The implication is that KLH cannot be obtained in any way other than by using the Limpets blood.

(3) Only Stellar Biotech knows how to extract blood from a Limpet without killing the animal and has a patent on the process. This is where the statements get interesting and must be carefully examined. Note that Hodge says “has a patent on it.” Could it be that other companies know how and are doing it but don’t have a patent? If the veracity of the statement is to be accepted, one must think that perhaps it is because of the inclusion of that wording about having the patent whereas no one else does.

(4) Stellar Biotech “has the only patent-pending process for raising Keyhole Limpets on land.” Here again, don’t overlook that “patent-pending” wording. The implication one may get is that SBOTF is the only company that has developed a process for farming the animal. That’s what we want to hear. But when that phrase re the patents is included, it opens the door for other firms to also be farming Limpets with their own processes but without having any patents on it. Tricky, huh?

(5) “This tiny biotech company that I’m telling you about today is the only company that can provide it.” (KLH). This would seem to be a complete misrepresentation.

(6) “This company is the only one that can provide KLH in commercial quantities.” Here is a perfect statement that illustrates what I’ve said about hearing only what you want to hear and missing the qualifier. It’s the “in commercial quantities” part that is signifigant. We hear that Stellar is the only company that can provide KLH. But when you include the “commercial quantity” part it has a whole new meaning. What, exactly, is a “commercial quantity?” How much can another company produce and provide yet not have to be considered in light of this claim?

(7) “In the near future, these guys (Stellar Biotech) could very well be the only company with any access at all to these sea snails.” The qualifer is “could very well.” Not “will be” or “are”, but “could be.” Huge difference in meaning. Yet we hear it as sounding as if they “will be.” and that’s misleading.

(8) Brief mention is made that there is a “reclusive billionaire that owns 38% of the company.” No name is offered. This leads me to wonder – if that person does exist, and he/she has such a large stake in the company, could this be the source of the recent financing and the reason why what would appear to be a sweet deal for them was offered? I’d like to know the answer to that. It doesn’t change anything, just curious.

I could go on but I suspect you can see now the point I’m making. A tease is carefully designed to entice interest. The claims and statements aren’t random musings – they are carefully thought out and phrased to push the idea being given yet have those few additional words that our brains tend to overlook when we are seeking to validate a hope or belief we might have. And that occurs with all of us from time to time. We just hear what we want / need to hear and run with that.

Hope this helps. As for me, I’ve concluded that yes, there are a couple other competitors out there that are involved in trying to perfect the farming of the Limpet and have a process to produce salable KLH. But I also believe that Stellar Biotech is the frontrunner in this endeavor and will succeed. If this were a horse race I’d compare SBOTF to having my money on Secretariat rather than any other in the field. I, and I suspect most of you, are already profiting handsomely in just a few short weeks from being stakeholders. Will we ever see the fantastic returns Hodge suggests we will? I don’t know. But I will be in on it if it does reach even a fraction of those suggestions. And I’ll be in it if this entire thing folds like a house of cards.

Best of investing to all ..
The Blind Squirrel
Jim Skelton

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dallen
dallen
August 24, 2013 1:53 pm

Jim.
Early on I believe I stated that I was able to research and determine the name of the company (at that time still KLH), from the Nick Hodge teaser. I did not listen to the majority of the teaser, as I will not allow myself to be influenced by teasers. I firmly believe the majority are paid BLOW HOLES. I spent a couple of days reading every article, news release, company web site, and back ground information on the science behind KLH. I bought KLH stock @.63, because I believed in the science and hope for the people the vaccines could help. I felt good about the care of the keyholes and the process of extraction and life after for the sea creature. I knew at that time other KLH was on the market, however not of the purity this farm produced. I invested on my own research and was not influenced by others comments. I went about my business when the hold was placed on trading, and was not swayed by others cold feet and speculation. I found this site after I bought stock in KHL/Stellar. I am in for the long haul sink or swim.

Deborah

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canonfodder
canonfodder
August 24, 2013 8:28 am

When SBOTF was at $1.00 I bought some. When it got to $1.50 something made me feel uneasy so I sold. The next day trading was stopped and then the stock dropped. I was glad that something made me get out with profit. When I sold I told myself that I would just watch it and buy again if it continued to climb. As you can see, it just fell apart. Whew!

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tomboroughs
tomboroughs
August 24, 2013 3:47 pm

KLH is not the medication but the carrier, which a few people seem to not understand.
Stellar has recently announced contracts with a company developing a medication that fights clostiridium dif. which I understand is fatal in many cases. Along with other contracts that they already have. KLH is supposedly too large to genetically engineer.
I do not understand exactly what their latest financing method is, buy shares at $1.05 and getting with each share 1/2 a warrent to buy a share at $1.35 in the future means, especially with the stock closing at near $1.35 on Friday. I bought in when the stock was under a dollar, the tease was too easy to figure out. Should I wait, or take my 40%+ profit and bail. I think not yet.
KLH seem too important of an ingredient in many medicines and vaccines that are coming down the pipe. However, maybe a trailing stock sell at a 20% loss would be a good idea.

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supertom
supertom
September 20, 2013 10:39 pm
Reply to  tomboroughs

I bought in at 0,60 and it closed today at @1.90. I’m hanging on because the daily rise recently has averaged @ 0.06 except for the huge swings when someone with a large holding takes his(her) stuff all at once. It usually takes about 7-10 days to recover and continue to march happily (for me) upward. They’ve recently got some financing from a Japanese pharma, so I’m holding on for the ride.

michael
Guest
August 26, 2013 10:20 am

Just fell apart?
Stellar had its highest volume day ever after the hhalt. Blessing in disguise

Whhy put ur trailing stop at a 20% loss? Set it 20-30%+/- from te most recent 52 w high. Why stop out at a loss whhen u can be in the money

David Brown
Guest
August 26, 2013 11:47 am

Thanks for all the useful information Jim–while we don’t always see eye to eye, I appreciate the time and energy you put into all of this. I still don’t appreciate the private offering by the company as I still see it as a sweet deal designed to benefit a small group (jperhaps the reclusive billionaire and a few others?) at the expense of the small investors. However, it looks like I overestimated it’s effect on the dilution of the market price as we are back to all time highs today. While the Big Dogs have an unfair advantage, we little pups can still get some crumbs. How many market shares are out there right now anyway?

Well, it’s a good day when my portfolio is beating the S and P by nearly 10 fold. While Stellar is leading the pack, DDD (3-D printing) is not far behind in my more speculative plays and QiWi (a Russian company with excellent positioning in the lucrative Russian cash machine business), CTRIP (China’s dominant E Travel company) and NENE (my smallest holding–solar spray of technology) are all up nicely. It’s been a strange couple weeks when my speculatives have all been up and my biggest blue chip holding: JNJ has been consistently down!

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newbie
Member
September 3, 2013 9:16 pm
Reply to  David Brown

Jim,
What would you consider a low enough dip right now to add to your position? What do you think SBOTF will do after the presentations on Sept. 9th and mid-October? I’ve done quite a bit of reading and feel somewhere in my gut that, if the stars get into alignment :), this could be big. I’ve worked in healthcare 25 years, and the thought of a vaccine for C-diff. makes the hairs on the back of my neck stand up…(not to mention the many other uses). I think KLH is the real deal, and anyone who can provide pharma-grade product consistently could hit the jackpot. I’m late to the party and have not purchased yet.

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David Brown
Guest
September 4, 2013 12:11 pm
Reply to  newbie

Now is a great time to buy Jana. Stellar is already over 10% of my holdings so I can’t risk more but if I had on the sideline I’d add it now-around $1.25 is an excellent price.

Jim Skelton, The Blind Squirrel
Guest
Jim Skelton, The Blind Squirrel
September 4, 2013 8:53 pm
Reply to  newbie

Jana:
Welcome to Gumshoetown! You’ve found a great site that offers some specialized investment thoughts. The head honcho, Travis, unravels the mysteries of all these “Teaser” ads put out by newsletter publishers whose main aim is to get you to subscribe to their service and THEN tell you what they are talking about – sometimes useful, sometimes not. Travis does the unravelling for us and saves the bucks. Then there is Myron Martin, an absolute wizard at finding, following, and sometimes picking companies you’d probably NEVER discovefr on your own. In particular foreign-based mining companies, many trading under $1.00. His stuff is GOLD, literaly and figuratively speaking. NOTE: to see Myrons work you have to step up and become what is called an “Irregular”member of the site. Travis charges only $49.00 per year for this – Yep, only $49.00! A deal if there ever was one. Don’t think about it, don’t delay – just sign up fot that membership and get ALL the site has to offer. Last, there are the comment from Doc Gumshoe, who is not an actual M.D. but instead a medical writer of some 30 years experience. No unwarranted bias in his work – just his best judgement about the going-ons in the medical and pharma world. Few stock picks, though – not his thing. Just some thought-provoking articles on how to take better care of yourself.
Now, about Stellar Biotechnologies.
I bought my first shares – some 7,250 – on July 18 of this year. I’d been watching it at around $0.63 and then it POPPED with no warning to $0.92 on the 18th! I cursed myself for not acting when I got that first Gut Feeling at $0.63. But I dove in anyway. And it’s paid off nicely.
I rode it up to about $1.55, then watched it start to decline. I sold it at $1.40 and waited. When the financing agreement was announced and the stock was halted for trading, it re-opened two days later around $1.05. If you have read all these posts, people got a little beserk and opinions flew as to what was going on. I bought back in at $1.17 and waited. Last Friday I got antsy for no particular reason and decided to sell all. I got out at $1.35. At the same time I put in a GTC order to buy 3000 shares at $1.25. Today that order went off as the price took a pretty serious hit intraday. It baunced back from the day low of about $1.15 or so and closed at $1,22. Tomorrow, if the two-day retreat continues, I plan to buy another lot of 3000 shares at $1.10. If it turns around and heads up, I’ll buy that lot at $1.30.
There is no magic in my thinking or the price levels I have set. Just sudying the daily chart and volume stats and trying to find the middle ground for what seems to be forming up as a trading range. Forget hitting the absolute tops and bottoms – that is always a matter of pure luck – but don’t tell the boys in the techcnical analysis dept. that. They need to think they can predict that kind of thing :0).
Are you “too late to the party?” In a word, no, I don’t think so. You pointed out a few reason why the future for SOBTF looks bright. But as a new, untested company, the road to that destination will be rocky and bumpy. And we all must admit that no matter what the outlook is, in a situation like this, that road can at any time send us careening off the side of the mountain to crash and burn. Live with that and don’t risk more than you can aford to lose.
The easy money in SOBTF has been made. That was done when it traded from $0.125 to about $1.10 a share. The paat 52 weeks has seen a total growth of some 300%. Results of that magnitude cannot EVER be continued indefenately. A slowdown is to be expected and I think we’ve hit that point now. Oh, it’ll still provide way above average returns. But thngs lke I got in 5 weeks as outlined above where my net total return was 42%? I’ be a fool to think that would continue.
So, for now, I trade it as I also mentioned. Looking for dimes, not dollars. Done consistently (and that’s the trick), those dimes can lead to dollars. Just maybe a little slower.
No matter what, I’ll be in this stock long-term. I believe in it, in the products and processes and patents they already have. And I like thier business model that will pay off down the road when enough contracts with Pharma have been sealed that givve us royalities on the drugs the pharmas develop using our KLH. Annuitization of assets and capital – that’s how big money is always made.
The upcoming presentations will be interesting, but don’t sit with breath held looking for some big news announcement. What we will get from them is increased awareness of what Stella Bio does and what we are planning on doing. This awareness can lead to increased investor interest which leads to buying which affects supply/demand factors which drives price. All good. Just wait until the day comes that a few independant research firms pick up on the idea and issure reports favorable (hopefully) for the company. Then mutual funds may began to nibble, the larger buyers come in, and BAM-MAM, the real results start to appear.
Just get in there now and don’t fret about “good time – bad time” metrics. Any time could be either one.
Be advised: the thoughts and opinions expressed here are those of myself alone and are NOT to be construed as a recommentation that you or anyone else buy shares of the company. That determination can ONLY be made by yourself based on your personal financial situation. No guarantee of profit is to be implied or guaranteed.
Hope this helps you a bit ..
Jim Skelton, The Blind Squirrel
“Even a blind squirrel finds an acorn every now and then.”

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tanglewood
November 4, 2013 3:01 pm

Jim, The symbol is SBOTF, Maybe you’ve been typing SOB too much!

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Rick Robbins
Guest
Rick Robbins
September 15, 2013 1:23 pm

You are what you put into yourself. Doesn’t take rocket science to figure out why so many people are sick. Get back to the basics of organic fruits and vegetables, buy a juicer and start juicing. A healthy liver is a healthy body. I don’t need a doctor and I don’t need medicine. End of story.

takeprofits
Irregular
September 15, 2013 9:28 pm

Short and to the point Rick, but most people simply “will not :get it” because they are too addicted to their junk foods. Everything you put into your mouth, whether drink or solid food, either builds health or it builds dis-ease, it really is that simple.

Good health comes from good habits, it does NOT come from bottles or packaged pills filled with chemicals that interfere with the bodies natural defences against disease. If you can find a copy in a used book store, probably the single most valuable book to come out of the medical profession, (unfortunately out of print) was CONFESSIONS of a MEDICAL HERETIC by Dr. Mendelsohn who I had the pleasure of meeting personally. He was a pioneer in exposing the many skeletons in the medical closet.

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Rick Robbins
Guest
Rick Robbins
September 15, 2013 9:38 pm

If anyone is curious about how to keep themselves healthy and has 40 minutes to listen, then you will appreciate what you hear.

http://www.youtube.com/watch?v=U7Ck9D45OT4

David Brown
Guest
October 25, 2013 1:41 pm

Stellar Biotech has a great future because it has patented the harvest of a natural/organic substance which when used in vaccines for difficult to treat diseases, helps stimulate one’s own immune system. This approach is the future for medical prevention/treatment–helping one’s own immune system fight off the bacteria, viruses or out of control cell growth (cancers etc…), rather than depending mostly upon chemicals, antibiotics or radiation which destroy part of one’s own immune defenses in the effort to attack the undesired invaders.
While I agree with many of the points that Myron, Rick and others have raised on this thread–you all are oversimplifying and using hyperbole to make your points. A good diet, good excercise habits, safe sex and lack of substance abuse, all go a very long way in helping anyone reduce her/his odds of contracting disease and/or succefully fighting off such diseases when they are contracted. Genetics, environmental factors and unknown factors also play a huge role. As a walker/jogger/hiker, I’m reminded of the following story from about 25 years ago: “A guy rolls down the window of his car as he passes a jogger and yells out: ‘Jim Fixx is dead; Fats Domino lives!’ “

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takeprofits
Irregular
October 26, 2013 3:27 pm

David: your point about genetics is well taken, but it reminds me of the scripture that says;
“I will visit the sins of the fathers to the 3rd and 4th generation” meaning that it may take 3 or 4 generations to REVERSE what the past generation has brought upon itself by “riotous living” ignoring the rules of good health. It is true that some people manage to defy the odds, but eventually, even if it takes generations, poor lifestyle habits will augment disease and GOOD lifestyle habits will can reverse pathology as the immune system is strengthened with good nutrition and general cleanliness of lifestyle.

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Tom Boroughs
November 4, 2013 4:39 am

I received the tease from Nick Hodge as an advertisement and was very easily able to solve what it was before I found this (stockgumshoe.com) site. I had recently retired, as a pharmacist, and was looking for something to do. I was intrigued by what they were supposedly doing so I bought 2000+ shares when it was at $0.73 after I had seen it move for the past couple of days. I sold some of that to buy another company on 10/30/2013, at $1.88 per share. it has gone but to $2 and above, that seems to be where it has meet with price resistance. I did get a little nervous when the sold additional shares at $1.05 with the promise of buying 1/2 of another share for $1.35 to raise additional revenue.
I feel that this stock has now run most of its rapid rise, but I left some money in it because I like what they are doing.
I did not purchace Nick’s book, and so far as I have seen most of his other picks have gone nowhere (that is a personal not legal opinion).
Now for a tip that has gone up 50% since early this week, and should go up another 100% in the next few weeks, check stocktips.com they will give it to you for nothing. I am not paid by them so check it out if you wish.

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Leo
Leo
November 4, 2013 7:39 pm

Wow! I again got more out of the medical discussions than the investment advice. Caution: We need to listen to everyone and just do the math to see that is true. Both sides to this issue have demonstrated abject failures. The alipaths failures are pretty much on the record, and although there are many testimonials for the alternatives some of these apolygists (sp) have never really been exposed to serious disease. I am 80 and have dreams of living to the age of my mothers sister who will be a healthy 105 in March. I have eaten healthily and excercised all my life. Unfortunately I have something wrong with me that prevents me from sleeping longer than four hours. Alipaths can only match the symptoms with a pill and the only homeopath I have used seems to be a charlatan (lots of dollars with no results). I just want a diagnosis. Thank you again Travis for this site, your sincerity and your honesty.

who noze
Member
November 16, 2013 9:21 pm

hi travis just as an aside there was a 2000to one on voisd now 500,000sh outstanding w// a name change mind solutioons [ reverse split

dennis
Guest
November 19, 2013 2:39 am

Leo,save your money and smoke med.pot. An oil spill could wipe out the large snail.

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