The timing actually works really well for the Friday File this week, because the teaser I want to sniff out for you is for a stock that happens to be insanely small and thinly traded — and I’d feel really bad about the inevitable exaggeration that would come from a mention of this company in the regular Stock Gumshoe Daily Update, there are just too many readers. I will write about teensy companies sometimes in that space, but I feel better about writing about a ridiculously little stock like this (market cap: $20 million — yes, with an M) for a much smaller group, the Irregulars. And if it ends up making y’all a zillion dollars, well, all the better — you’re the folks who keep Stock Gumshoe going, so you deserve a little extra. Of course, this is a penny stock so it could end up being worthless in a matter of weeks, too.
So anyway, the teaser comes in from James Dlugosch, who you might remember — he launched a newsletter called Penny Stock Winners earlier this year, promising riches from microcap companies. The first teaser I saw, pre-launch, was a thinly-veiled push for Jones Soda, which was trading at just about a dollar at the time (it’s now at 80 cents, so the jury’s still out on his prescience with that one). Will this pick of his be any better? Well, it’s certainly different.
Here’s what he says:
“I won’t tell you everything I know about a new addiction treatment procedure being pioneered by this 39-cent health care company and the reason is this:
“If I did, you’d need a squeegee to wipe the greedy drool from this page.
“Changing The Addiction Treatment Paradigm
“Addiction is created when the brain rewires itself for dependency. A tiny L.A. health care outfit has seen stunning results by essentially rewiring the addict’s brain to forget the drugs.
“Our new knowledge of basic brain patterns is allowing us to chart the chemical cascade that takes a beer-sipping teen to a passed-out drunk at 40.
“This is a game changer simply because it takes addiction out of the realm of “will power” and puts it in to the realm of disease treatment. Right there, that’s controversial, and one reason the shorts are ready to pounce on this tiny stock.
“David Becomes Goliath
“Now along comes Obamacare, and the fortunes of ...