“The Next Blockbuster: Insiders are Grabbing This $6 Biotech – You Should, Too” sez Bill Patalon

By Travis Johnson, Stock Gumshoe, September 14, 2015

This is one of the shorter teaser pitches I’ve ever covered — so, bonus for you, it’s also likelier to be one of my shorter articles!

The spiel is an ad for Bill Patalon’s Private Briefing, which is one of those “greatest hits” newsletters … it’s intended to cherry-pick the “best” ideas from all the newsletters published by Money Map Press/Money Morning (by folks like Dr. Kent Moors, Michael Robinson, Shah Gilani… we write about their “teaser” picks pretty frequently, partly because they advertise so aggressively) and serve them up to you at a lower cost than you’d pay to get all the newsletters.

Of course, this works for them primarily as a marketing device — if you start to love the picks at this little newsletter, you’re going to be enticed to buy the far more expensive letters from the editors who are actually generating all those ideas and publishing them the first time around. Newsletter publishers know that a huge hurdle for investors is subscribing to that first, usually inexpensive newsletter… once they’ve convinced you to do that, and to effectively pay for advice or information for the first time, your sales resistance starts to disintegrate and you become a hugely valuable prospect for their pricier letters.

Private Briefing recently (well, over the last year or so) bucked the trend of these “entry level” newsletters by increasing the price — most publishers have been slashing prices to get people in the door, dropping the industry standard $49/year down to $39 or $29 or $19 for new subscribers… and a couple years ago, when Private Briefing was started, a bunch of publishers were experimenting with even lower price points to entice folks by switching to a monthly “pay as you go” price. They hit in the middle of that group when it came to pricing, charging about $8/month among competitors who were mostly in the $5-10 range, and this year they’ve ramped up the fee and are selling it for $20 a month. That’s not “entry level” pricing anymore — anything over $80-$100 usually gives investors pause, from what I can tell — but perhaps it gives subscribers some solace that they’re only on the hook for $20 if they don’t like it.

Past pitches from Private Briefing have not necessarily inspired confidence that they’re teasing unbeatable investments — the most recent one was JG Wentworth (JGW), the structured settlement buyer they touted in May (it has now fallen by 50% or so after a terrible quarter), and Patalon’s “best of” picks like Kratos (KTOS) in mid-2013 (down 30% or so), and his insider buying-driven recommendation of Delcath in 2012 (down 75% now) have been equally weak.

That doesn’t mean all their stock ideas are bad, of course, but it should remind us that the simple fact they’re teasing them and building captivating, well-written arguments for why they’ll double or triple doesn’t, by itself, guarantee anything. We don’t know what Patalon might have recommended to his subscribers, they may have been short-term trades or they may be the only losers in a sea of winning recommendations — but we’re not cherry-picking the results, those are the the only three teaser picks of his that have been heavily touted enough to make us cover them in recent years, and each came with the “promise” of having possible gains of 201%, 300% and 295%, respectively.

But that doesn’t mean they can’t present interesting ideas… or that we can’t, at least, satisfy your curiosity and let you do your own research. So, now that we’ve cooled your jets a little bit, what’s the latest stock?

They’ve been pitching this one for a couple weeks, and this is all we get in terms of details: