WINDSOR, ONTARIO / ACCESSWIRE / October 19, 2015 / The Wealthy Biotech Trader (or "WBT"), an investment newsletter focused on showing everyday investors new opportunities in rapidly growing, little-known, biotech, pharma, medical device and general healthcare stocks making news and subsequent market moves, is alerting traders about several trade ideas within the very healthy medical device sector.
Investors are starting to move back into the equity markets thanks to the performance of a few key sectors, namely biotech, pharma and medical devices. Indeed these three sectors have outperformed many of the key indexes.
For us the biggest sector in the trio is biotech and we've discovered from our research that several ETFs for the biotech space have been doing quite well.
Take SPDR S&P Biotech (ARCA: XBI) for instance. Interestingly the huge gains that underpin the growth of that ETF are owed to small caps. We've been championing biotech as a growth sector for months so frankly we are not surprised that investors are seeing huge returns from small cap companies.
We anticipate further growth across the biotech sector and have identified four companies that we feel can provide substantial ROI for investors who act on them early.
PositiveID Corp. (OTC: PSID) is one of the more interesting companies we discovered when we researched opportunities in the biotech space. We also looked at Loxo Oncology, Inc. (NASDAQ: LOXO), Forward Industries, Inc. (NASDAQ: FORD) and High Performance Beverages Co. (OTC: TBEV).
Bio-detection More Relevant to Investors than Ever
PositiveID Corp. (OTC: PSID) is a developer of biological detection and diagnostics solutions.
The company's lead product is Firefly Dx, a point-of-need, handheld system, designed to deliver molecular diagnostic results from a sample in less than 20 minutes, compared to hours or even days for a lab device, using real-time PCR (polymerase chain reaction) chemistry.
The system is a two-part device consisting of a portable handheld instrument with wireless communication and disposable single-use cartridges containing all necessary analytical elements. The system is designed to process a variety of sample types, including whole blood, buccal and nasopharyngeal swabs, urine, and environmental field samples.
These reduced testing times and diagnostic capabilities make PSID and its Firefly Dx kits a very powerful ally on the front lines of the fight against disease and deadly pathogens.
But what does this all mean from an investing perspective right now?
Cue up NY Giants tight end Daniel Fells. He'll probably never play football again because doctors have had to remove a big chunk of his leg. Fells was infected by the super-bug MRSA.
In the wider sense MRSA is the ticking time bomb that few people want to talk about. It's in NFL locker rooms, hospitals and a lot of places used by the public. The case of Daniel Fells brings a high-profile perspective on the bug that is clearly becoming a concern for health officials.
"MRSA is the bane of medicine right now," says Derek Ochiai, a Maryland-based surgeon who specializes in the treatment of upper and lower extremities.
The problem is two-fold: in spotting it, and in treating it. It's hard to differentiate MRSA from another ailment at first, and then it's resistant to antibiotics.
"It's a big problem," Ochiai says. "It's resistant to all the penicillins you would normally use to treat. Very aggressive bacteria, very hearty, very difficult to eradicate."
There has never been a more urgent need for the sort of products being developed by companies like PSID. The inability for hospitals and professional sports locker room admin to spot a deadly bug like MRSA means products like Firefly Dx are needed more than ever.
It's really only a matter of time before the efficacy of PSID's Firefly Dx reaches the ears of those in charge with tackling MRSA.
Obviously the time to invest in companies like PSID is right now. After all, by the time the NFL and health agencies come knocking on PSID's door, valuation will be potentially astronomical by then. The secret is seeing this upside early, and being an early-stage investor.
Over the last few weeks PSID has been dominating the news, too. The company recently met a major development milestone for its new Firefly Dx prototype, coupling the PCR with real-time optics for pathogen detection.
PSID confirmed that the latest advancement also enables the running of its own and third-party assays directly on the Firefly Dx prototype system. In money terms it means huge cost-savings as the need to use a commercial instrument for confirmation of results is eliminated.
The company said in its release that the inclusion of real-time optics on the Firefly Dx prototype system enables the measurement of fluorescence with every cycle of the PCR process. Think faster, more accurate measurement of deadly pathogens like MRSA.
The wider market for molecular diagnostic products is expected to exceed $25 billion next year. Companies like PSID are perfectly positioned to capitalize on this market growth potential.
Investors also got a good look at PSID recently when it's Chairman and CEO William J. Caragol presented at the Aegis Capital Corp. 2015 Growth Conference. The conference featured healthcare, technology, telecom & aerospace-defense presentations.
The strong news has been pushing PSID against its ceiling for the last few weeks. The stock has been bracing heavily against resistance in an attempt to breakout. We believe that the strong news paired with urgent market demand for products like Firefly Dx can be the catalysts for a major upgrade in valuation for the company.
Loxo Oncology, Inc. (NASDAQ: LOXO) has been having a pretty good showing on the news front, too. The company recently announced the enrollment of the first patient in its Phase 2 basket trial of LOXO-101 in adult cancer patients whose tumors harbor tropomyosin receptor kinase (TRK) fusions.
A basket trial is a new clinical trial design that enrolls patients based on a common, defining genetic feature of their cancer, rather than based on an anatomic definition. LOXO-101 is the only selective TRK inhibitor in clinical development.
Anything that takes the bite out of cancer is welcoming so we see nothing but great things for LOXO as it makes progress with LOXO-101. The stock is trading near its 12-month high of $24.73, so like PSID, strong positive developments could be the tipping point for a major breakout.
In August shares in Forward Industries, Inc. (NASDAQ: FORD) jumped 34% after it announced the extension of an agreement currently in place with Bayer Healthcare (BAYRY). The agreement involves carrying cases made for Bayer diabetic products and will run until 2018.
"Getting this supplier extension from one of the major players in the industry is testament to our ability to supply quality products on a timely basis," said Forward Industries CEO Terry Wise in a statement.
FORD also saw positive numbers for its Q3 2015 earnings. The company posted revenues of $7.23 million with net earnings of $0.50 million. More importantly there was a year-on-year change in operating cash flow of 70.51%.
High Performance Beverages Co. (OTC: TBEV) had two big developments since the start of October. First, the company announced the successful launch of its High Performance Sports Drink(TM) through Amazon.com.
TBEV said that despite Amazon's limits on how much of a product they would carry, the product was sold out in within 48 hours. This sent the product to number one on Amazon's nutrition bestseller's list.
The second big development for TBEV was news that the company entered into a binding term sheet and definitive agreements to obtain up to $5 million in additional financing in the form of an equity line.
The equity line also includes $450,000 in immediate bridge capital in the form of an unsecured promissory note to be issued to GHS Capital LLC. That news was issued on October 9. Since that announcement investor interest has grown, with daily volatility levels showing a marked increase.
Investors should have little doubt in the power of the biotech sector. Certainly not on the strengths of recent ETF moves and the strong developments surrounding the companies we've outlined above.
PositiveID Corp. (OTC: PSID) in particular shows strong promise and recent price movements suggest that the stock could be getting ready for a potentially massive breakout.
Such a breakout could have a domino effect on other companies in the biotech space and the other three companies profiled here could benefit. Investors are therefore urged to strike whilst the growth opportunity is strongest and most accessible.
The Wealthy Biotech Trader is always researching new trade ideas which have the makings for large market moves. Traders are urged to follow our parent outlet, The Wealthy Venture Capitalist on social media (see below) to stay apprised. We are an anti-email media outlet, and as such will only be releasing our reports/ updates/ news through Twitter and Facebook as well as newswire.
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This report/release/profile is a commercial advertisement and is for general information purposes only. We are engaged in the business of marketing and advertising companies for monetary compensation unless otherwise stated below. The Wealthy Biotech Trader and its employees are not a Registered Investment Advisors, Broker Dealers or a member of any association for other research providers in any jurisdiction whatsoever and we are not qualified to give financial advice. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. Sometimes human error can attribute to honest mistakes in reporting on issues regarding public companies and overall capital markets, and as such we are not responsible for the complete accuracy in these reports as the reader is required to verify all statements to ensure they are completely accurate. The Wealthy Biotech Trader encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled through their website, news releases, and corporate filings, or is available from public sources and The Wealthy Biotech Trader makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. The Private Securities Litigation Reform Act of 1995 provides investors a "safe harbor" in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be "forward looking statements". Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as "projects," "foresee," "expects," "will," "anticipates," "estimates," "believes," "understands," or that by statements indicating certain actions "may," "could," or "might" occur. Understand there is no guarantee past performance will be indicative of future results. Past Performance is based on the security's previous day closing price and the high of day price during our promotional coverage.
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