“Cancer Blaster”

By Travis Johnson, Stock Gumshoe, October 7, 2007

Well, this is something that doesn’t happen every day: we’ve got a repeat customer for one of the stocks we teased out in the past. This is a new teaser from Karim Rahemtulla for the Xcelerated Profits newsletter, but it happens to be for a stock that was previously recommended, in a poorly timed pre-earnings email, by Brian Hicks at Quantum Confidential.

And, just to pile on a bit, the Gumshoe recently picked up shares in this one, too — in the end, I couldn’t resist a little gamble … and to be clear, I do think this one is pretty high-risk.

“Hey Gumshoe,” says my intrepid reader, “get to the point … what’s the company?”

Patience, grasshopper. We’re getting there.

This teaser is for a company that has created a “cancer blaster” that has half a billion dollars worth of backorders.

This is the Gumshoe writeup from Brian Hicks’ teaser email, by the way — he called this “wealth care” investment the “Next Da Vinci.” But if you go read it now, you’ll miss the surprise!

And they’ve got some pretty good hyperbole to get us all hot and bothered about this company, and inspire a devoted subscription to Xcelerated Profits (just $49.50, to be fair, but still … who doesn’t like a free idea better?):

“So, Forget About Pipe-Dream Drugs And Someday FDA Approvals … THIS COMPANY’S BREAKTHROUGH DEVICE DESTROYS CANCER TUMORS NOW … And That Includes Stubborn Prostate Cancers and Lung Cancers.”

And anyone who has invested in medical technology or biotech will tell you, perhaps with a ghoulish look in his eye, that there’s some big money in cancer … if you can get the treatment right. Those baby boomers are getting older, after all.

Plus, if you buy into a company like this, or like Genentech selling it’s hugely expensive Avastin cancer drug, you can tell yourself that you’re helping to save lives and loading up on filthy lucre (and health insurance companies are picking up the tab for these new treatments, most of the time, so it’s not “real” money, right?)

So yes, we all love to invest in cancer fighters … and this one’s a doozy, at least in Rahemtulla’s words:

“You walk into the hospital with a tumor – what was once a death sentence – and this machine lines up the tumor – then blasts it … No surgery … No hospital stays … No chemotherapy … Less brutal fatigue … No hair loss … Just a series of outpatient treatments … You go home healthy… CANCER FREE.”

There are quotes from a half dozen doctors, all proclaiming the effectiveness, patient-friendliness, and value of this device.

With plenty of argument for why you need to know about this company right now, of course:

“And now that the device is being successfully used in more than 70 clinics and hospitals across the globe … the old drug companies are quaking because hospitals around the world are now demanding … ‘How can I get my hands on one of these machines?'”

So that’s pretty impressive — and they gild the lily a little further, essentially saying that pent up demand is growing quickly because they have created a new market from whole cloth … that essentially means this can treat, with minimal discomfort, almost any kind of cancer.

And, perhaps the most compelling part, this is “A groundbreaking product that is only made and delivered by one company…”

Ooohh, a monopoly! It’s like sweet, sweet music to an investor’s ears!

And he compares it to Google and Apple, and subtly mentions their meteoric rise (recent only, in AAPL’s case). Kind of odd — I thought it more apt when Brian Hicks compared this one to Intuitive Surgical, which is a much more similar company.

So what other clues does Karim give:

This came public “a few months ago” on the Nasdaq, and has done relatively poorly in the market since.

The shares are under $30 somewhere in a “huge miscalculation.”

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