This teaser for one of Andy Obermueller’s newsletters has been making the rounds for a while, but it has so many aggressive predictions in it that the questions about it roll in to Stock Gumshoe HQ pretty regularly … so let’s see if we can pick out a few of his hot “investment opportunities,” shall we?
This newsletter is one of three that Obermueller edits for StreetAuthority, and like a few other newsletter folks lately he’s been moving backwards — he’s had expensive letters for a year or two now, including Government-Driven Investing (about $500) and Fast-Track Millionaire (about $1,000), but he didn’t have the nice little cheap newsletter to entice new subscribers (who he can then urge to “upgrade” to the fancier new model with the undercoating and the heated seats). That changed recently with the introduction of this Game-Changing Stocks (apparently hyphens are de rigueur at StreetAuthority), which fills in the “less than $50” slot in the lineup … and he’s introducing that newsletter to potential subscribers with this broad teaser predicting “10 financial surprises” that will be hot investments over the next year.
I can’t imagine that I’ll be able to get to all ten of them for you today, and some include only very scant clues so those probably can’t be specifically identified … but let me pull out a few that sounded at least fun, and, who knows, perhaps profitable as well.
With all the snake oil I take a dip in every day, I just had to look into the stock he’s teasing that apparently has a cobra venom painkiller … here’s how he pitches it:
“An astonishing new painkiller made from cobra venom will fly off the shelves in 2011… and push the stock of its maker up +568%…
“Cobra venom paralyzes nerves and stops the pain. It has been used in China for hundreds of years to kill pain. It’s all natural, non-narcotic and, because it’s topical, it works fast.
“You say you don’t have any spare venom handy? No problem. Now you can buy it as an over-the-counter painkiller in thousands of drugstores.
“The painkiller market is so huge that getting even a tiny slice of it can make you a fortune.
“Americans spend $25 billion a year on pain-management products. Pain is the reason for half of all doctor’s office visits. 25 million Americans suffer from acute pain and another 50 million experience chronic pain, such as from arthritis.”
Actually sounds kind of real, no? Pain is certainly a major market, though it’s also an extremely crowded one. How about some more about this company and that 568% gain potential?
“This new cobra-venom painkiller is used for “Stage Two” pain. That’s doctorspeak for pain that keeps you from sleeping or causes you to miss a day of work.
“You can buy a topical gel for joint pain or a one-ounce oral spray for lower back pain, migraines, shoulder pain and cramps. Each is sold as a one-month supply and costs about $20.
“The new medicine is already available at more than 30,000 outlets, including CVS, Walgreen’s and Winn-Dixie. A major marketing campaign has just been launched. If it captures just 1% of the market, that’s $250 million in sales. If that happens, this stock is at least a +500% gainer. Assuming a P/E of 15 and a modest 25% net profit margin (actually quite low for the drug industry) then the company would be worth $313 million, or +568% above today’s price”
Well, 1% can’t help but sound small and attainable … but it is, of course, neither, getting to that level of national acceptance and sales would take a big push and, unless the product really works spectacularly well and catches on, some luck.
But what you want to know is the name of the company, right? This is Nutra Pharma (NPHC, absolutely teensy and trades over the counter).
This stock has been around for quite a while and has a pipeline of clinical