Godzilla

Godzilla Investing

Sometimes we rant. It’s never too long, usually, and we don’t do it often, so when an occasion like New Year’s affords us an excuse and the spirit of the rant settles upon us, we figure it’s time to take a minute and let loose. First off, we had a good year. It was a good year because we remained independent. We laid out our own investment hypothesis and stuck with it regardless the noise. We made tactical adjustments along the way if our thinking, or just our timing, proved askew. And we can’t emphasize that first point strongly enough. Success is never the product of doing what the other guy’s doing, or just did, or says he’s going to do. It comes from the formation of a clear picture in your own bedraggled, imperfect mind and holding fast to it, even as the winds and the hail and the monsoons buffet and shake your very foundations. Remaining focused on the big picture is essential. Don’t look there! That said, there are certainly individuals from whom we’ve a great deal to learn, and still others, whose thinking is so extreme and far from the herd that we always seek them…

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On The Fast Track With Navidea

I’m rarely attracted to publically traded small-cap biotech and pharmaceutical firms. Most are struggling to get their products approved by the FDA, and looking to enter a marketplace already populated with “800-pound gorillas”—giant big pharma multinationals with deep pockets and heavy-duty institutional support. Very occasionally, however, I’ll stumble upon an up-and-comer in the sector that appears well worth a long look as a nice long-term investment. Right now, Navidea Pharmaceuticals (NAVB) is just such a company. Now in its 30th year of operation, Navidea Pharmaceuticals is a biopharmaceutical concern focused on the development and commercialization of precision diagnostics and radiopharmaceutical agents. The company’s radiopharmaceutical development programs include Lymphoseek (Lymphoseek, Kit for the Preparation of Technetium Tc99m for Injection), a radiopharmaceutical agent for lymph node mapping; AZD4694, an imaging agent, and RIGScan, a tumor antigen-specific targeting agent. In January 2012, Navidea executed an option agreement with Alseres Pharmaceuticals, Inc. to license [123I]-E-IACFT Injection, also called Altropane, an Iodine-123 radiolabeled imaging agent, being developed as an aid in the diagnosis of Parkinson’s disease, movement disorders and dementia. NAVB shares got a significant boost earlier this week after the company announced that that the F.D.A. granted Fast Track designation to Lymphoseek (technetium 99m…

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A Recipe For Potential Breakout

Anyone who’s visited their doctor, had their blood drawn, or been hospitalized has seen medical waste—needles, gloves, and bandages just to name a few—deposited into hygienic plastic bags. The company I want to bring your attention to today, Sharps Compliance Corp. (SMED), is in the business of collecting and disposing of that waste, and a range of other dangerous potential contaminants. Based on the company’s latest earnings report, that business is booming, creating the potential for a short-term breakout in SMED’s share price. Sharps’ solutions cover the proper treatment of numerous types of items, including hypodermic needles, lancets and other devices or objects used to puncture or lacerate the skin, in addition to and unused consumer dispensed prescription and over-the-counter drugs and medications. The company serves customers in multiple markets such as home health care, retail clinics and immunizing pharmacies, pharmaceutical manufacturers, professional offices (physicians, dentists and veterinarians), hospitality (assisted living facilities, hotels, motels and restaurants), and government agencies at the federal, state and local levels. While it’s certainly not the sexiest business, someone’s got to do it, and judging from the company’s very nice Q1 earnings report, Sharps business is growing at an impressive clip. The numbers speak for…

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SURGing Towards The Black

In the never-ending push to find “the next big thing,” or capitalize on volatile, short-lived momentum movers, market participants often miss out on bread-and-butter issues that hold out the potential for slow, steady and relatively risk-free gains. Shares of medical device maker Synergetics, USA, Inc. (SURG) may offer just such an opportunity right now, as the company’s bottom-line performance and outlook suggest that it is very much headed in the right direction. Synergetics USA, Inc., provides precision surgical devices primarily for the ophthalmology and neurosurgery markets in the United States and internationally. The company’s product lines include precision-engineered disposable and reusable devices, surgical equipment, procedural kits, and the delivery of various energy modalities, including laser energy, ultrasonic energy, radio frequency energy for electro surgery and lesion generation, and visible light energy for illumination. The company sells its products directly, as well as through distributors and independent sales representatives to end-users at hospitals, ambulatory surgery centers, and surgeon offices. The first thing to note about Synergetics is that it is a profitable enterprise, reporting EPS of $0.06 for its most recent Q4 reporting period. That number was down year-over-year from Q4 2012 when the company banked EPS of $0.08. Revenue for…

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Signs Point to Breakout Move for Highpower International

Sometimes there are fundamental reasons for a company’s stock price to rise – usually tied to expanding sales and a growing bottom line profit. Other times a stock will jump primarily based on its technical trading profile. In the case of the issue I want to bring to your attention today, the under-the-radar small cap play Highpower International (HPJ), the company’s business and stock performance are both pointing to potential breakout highs ahead. Highpower International, Inc. is engaged in the production and sales of rechargeable nickel-metal hydride (Ni-MH) batteries, lithium batteries and battery systems. The company also recycles scrap battery materials through outsourcing and resells the recycled materials to some of its customers. The company’s batteries fall into two main categories—consumer and industrial. The consumer batteries category produces Ni-MH and lithium batteries, while the industrial batteries are designed for electric bikes, power tools and electric toys. First, let’s look at how this company has been performing at a nuts and bolts level. Over the past four quarters HPJ has recorded revenues north of $30 million three times, with the other quarter showing almost $25 million in sales. For the three $30-million plus quarters the company was mildly profitable, and posted…

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Update – Taking Stock Before The Holidays

It’s been an amazing, record-shattering ride for U.S. equity markets in 2013. With Thanksgiving right around the corner, and Christmas less than one month later, it’s a good time to look back at several of our picks, evaluate how they did, and weigh in on how these plays may perform during the rest of the year and beyond. Sharps Compliance (SMED) Sharps Compliance Corp. (SMED), which I brought to your attention in late October, is in the business of collecting and disposing of medical waste, and a range of other dangerous potential contaminants.  Based on the company’s latest earnings report, indicating that business was booming, along with several other factors, I felt that there was some solid potential for an imminent short-term breakout in SMED’s share price. At the time, SMED was trading at about $3.80 per share. In fact, that’s exactly what happened, with SMED shares running up to a new 52-week top of $5.24 per share at the beginning of this week. Profit taking finally kicked in earnest Wednesday, despite the continuing bull market run. As a result, it appears that it’s time to close out this position, which yielded optimal gains of about 40%. Congratulations if you…

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