“New York Biotech Stock To Soar 997% As Stem Cell Market Explodes In 2012”

Sniffing out the stock teased by Manny Backus for his Penny Stocks Guru Service

By xiexgp@gmail.com, June 28, 2012

We’ve seen folks ask about Manny Backus services before — he’s published a few different alert services and newsletters in the past, most of them focused, as far as I can tell, on short-term trading. We haven’t written about any of them before because he hasn’t actually teased anything very specific in terms of a trading strategy or a particular stock … but that ends today.

Because he’s now pitching what looks like a new service (new to me, at least) called Penny Stocks Guru … and in urging you to sign up, he’s teasing a specific little biotech company that he thinks will go up by 997%.

Here’s the intro:

“‘This has never been accomplished before… Now we have done it.’
~ Eduardo Marban, Director, Cedars-Sinai Heart Institute ~

“New York Biotech Stock To Soar 997% As Stem Cell Market Explodes In 2012

“Scientists from Cedars-Sinai Heart Institute and Johns Hopkins University discover medical miracle to beat the number one disease killing Americans… AND… catapult this tiny company’s stock to all-time highs as news spreads
like wildfire. Investors who act fast could bank record returns…”

So it’s easy to see why so many readers have sent in questions about this particular ad — and, frankly, why it also piqued my curiosity. We also will keep in our minds that the broad promise of stem cells has made far more headlines than it has fortunes so far, and that past teaser picks of stem cell companies that will revolutionize the world have not generally been barn-burners in recent years.

Still, some have experienced big temporary gains on the back of headline breakthroughs, and some have continued growing and advancing the science with an eye to eventual products and revenue, so maybe someone will make a bunch of money on stem cells in the decade to come (instead of just making money by selling you the promise of stem cells). Will this little stock that Backus is teasing be the one?

Well, let’s dig into his clues and see what he’s talking about so you can make that call for yourself.

First is the general bit about stem cells and a treatment for heart disease, which is what that “never been accomplished before” quote above is about:

“New research continues to propel the industry forward. Positioning one little-known biotech company for explosive growth over the coming months.

“In late 2011, scientists from Cedars-Sinai Heart Institute and Johns Hopkins University, reported the results of a recent clinical trial. Which could help millions of heart attack patients recover and live a full life.

“Cardiac stem cells were harvested from healthy heart tissue of people who suffered a heart attack. The stem cells were grown in a lab and given back to patients.

“Those who received the treatment showed significant reduction in scar tissue on the heart muscle.

“The muscle tissue regenerated.

“Which has never been seen before in any clinical trials or studies….

“Breakthroughs such as this fuel growth across the stem cell market. Conservative estimates show the market may rise to over $1 billion in 2012.”

Which all leads you to the assumption that he thinks we should buy the company behind this heart treatment breakthrough — but that’s not the case, that particular study was funded with public money and is very early-stage, the patent on this treatment is claimed by Johns Hopkins, which is where Dr. Marban worked before moving cross-country to Cedars-Sinai, and it’s licensed to a tiny company that’s partly owned by Marban and run by his wife but is not publicly traded (the company’s name is Capricor, in case you’re interested in that end of the story).

So no, we’re not being told to invest in this particular breakthrough — rather, this sets up as a more generic investment in stem cells as a trend through a different little company that is publicly traded. Here are some specific clues about the “New York Biotech” that he’s apparently recommending:

“At the forefront of stem cell medicine is a small New York-based biotech.

“Our research indicates this company’s stock is about to take off. By as much as 997%. Allowing investors who get in now to book spectacular gains.

“Let me explain why…

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