Ray Blanco seems to love pitching a good “results coming soon” story for his FDA Trader ($1,495, no refunds) newsletter over at Agora, and this one is no different from dozens of others he has touted in the past… though the stock is one I haven’t seen him tease before.
OK, fine, yes, I know what the stock is and this one was a pretty quick solution — which is why I’m getting it out to you so early in the day… but still, let’s go through the story and give you a taste of the ad, then I’ll share that answer with you.
Here’s what caught my eye:
“The drug-maker will print a secret code on the pill bottle.
“It’s easy to identify the code, and it could be worth up to $539,325 — or 452 ounces of gold.
“Main Street Americans have already started pocketing thousands, like Keith Hudson who banked $200,000.
“BUT YOU MUST TAKE ACTION BEFORE SEPTEMBER 28.”
That’s hooey. The code part, at least — Blanco spends a while talking up these “secret” codes on pill bottles that can help you find riches, and that’s a complete red herring… yes, every pill bottle has a number on it, and each drug has a unique code, but it’s not at all secret — it’s just a number that’s organized by the FDA and used for reporting and identification… think of it like the barcode number on any other product. It shouldn’t mean anything to investors, other than to reiterate that yes, a drug that is available commercially will have a code (called a National Drug Code, NDC). You can search the NDC directory here if you’re curious, but I’ll warn you — for most of us, it’s boring and meaningless.
And how about the “September 28” bit? That’s a reference to when he thinks there will be some sort of data release that should have an impact on the stock price. Here’s more:
“The medical world awaits September 28 with anxious enthusiasm.
“On that day, heart disease — the No. 1 killer in the world — could fade to black.
“As you read this…
“Some very sick patients — 800 of them — are participating in a clinical trial.
“The trial is a final hurdle, if you will — and it’s wrapping up any minute.
“Upon favorable results, the ‘Golden Pill’ will hit every pharmacy shelf in America, and likely become the nation’s latest blockbuster drug — a la Lipitor and Plavix.”
Blanco says this is “the most important medical trial in human history” because it’s the first one to block the root cause of heart disease… and because it’s owned by a “junior biotech” and could soar to join the ranks of Pfizer, et al on the strength of this drug, which “blocks cholesterol at the very source of it — during the liver’s biosynthesis process.”
What kind of gains? I thought you’d never ask… more from the ad:
“It took over $250 million and 20 years for the Golden Pill to sit on the brink of glory.
“Make no mistake, though — these final hours will be extremely explosive.
“That is, because the drug-maker has only one product — the Golden Pill.
“So with favorable trial results on September 28 — the stock price could blast violently vertical.
“It’s why I’m forecasting a 5,000% gain, beginning with a super-spike on Announcement Day.”Are you getting our free Daily Update
"reveal" emails? If not,
just click here...
OK, so the ad goes on and on… but we already know where it’s going. And we are urged to remember that yes, a company that has only one product in development can also fall sharply when expectations about that product change.
This is, sez the Thinkolator, another pitch for Esperion Therapeutics (ESPR) and its be