I have been speaking with a number of individuals trying to determine the status over at CryoPort (OTCBB: CYRX). I recently spoke with another investor who indicated that CryoPort might be close to getting an impressive deal done. There were no hard numbers in our conversation, just a couple of companies and some rough estimates thrown about. The two companies are well known and are already doing business with CryoPort - as evidenced in press releases and other publicly available information.
Based on my conversations, using a realistic, but still somewhat conservative, income model on the those estimates would mean that the stock appears to be significantly undervalued at its current level.
Given the nature of my conversation and the source of the information, I am currently optimistic that we are nearing a major milestone and one that will be positive for investors. I am not at liberty to discuss details, however, today's volume has been promising and nearly all of it is coming in at the ask. At 70 cents per share, I can't imagine who would want to sell large volumes of stock, particularly with a potential deal on the horizon, but to each his own.
A review of the recent website redesign at CryoPort (www.cryoport.com) would certainly indicate that they are not shying away from letting everyone know they are in bed with FedEx. Hopefully the next press release that comes out will have some meat on its bones and include the ticker symbol of a large public comapny so this stock will finally get the eyeballs that it so badly needs.
Over the last month, my advisory clients have been net buyers of stock. We don't really want or need to buy more stock as we already have a lot of shares. But the stock is just so attractive here, we had to pick up some. If what I am hearing comes to fruition, I would expect to see a lot of positive momentum in the stock over the near term.
How long will it take to work out the details? I don't know. I do know that a very reliable source ask me to be patient. I know over the past couple of months, I have introduced some new investors who are buying the stock, including: money managers, brokers, individual investors and even a few of the original investors in the Company are buying some additional shares. If we could just get the sellers out of the way, this stock could surge.
I am looking forward to reviewing the Q1 financials and to see what kind of quarter over quarter improvements we are getting from our management team. If I don't see a deal get announced over the next month or measurable financial and operational improvements when reviewing the last 3 quarters when the numbers come out in August, I will begin to push a platform for change. I have already spoken with a number of shareholders that represents a significant amount of stock and believe that I will have the necessary voting block to effect a change should it become necessary.
Together with my advisory clients, we maintain a sizeable ownership in this company. I hear the frustration every day in this stock that we continue to expect so much from. And while I am fully prepared to become a change agent if necessary, I am 100% hopeful that it will be a moot point and we will all be in a much happier place in 30-45 days. If what I hear is accurate, I think we will be both happier and wealthier too.
If you haven't signed up for FCI News Alerts, please go to www.firstcapitalinvestors.com and sign up. It is a free service and it is the fastest way that I have available to me to get news out to those who follow the stocks in which I have an interest. Make sure to check your email because it is a "double opt in" service, requiring you to verify that you signed up. I use this service to make sure that only those who want to recieve the news actually get my emails.
Hope you all had a Great July 4th and are experiencing a restful summer, even in these turbulent markets.
~ Peace ~
Wednesday, July 9, 2008
Wednesday, June 25, 2008
Phantom Fiber: OTCBB: PHFB
The last 2 press releases for Phantom Fiber (OTCBB: PHFB) have been very interesting to me. When I originally started looking at this company, I was under the impression that it was more of a software development company for the gaming sector. However, putting together the Investor Fact Sheet (click for PDF) and reading the last 2 press releases have really been educational for me and they demonstrated that this company is not really a "gaming play" at all. Phantom Fiber is a delivery platform for all types of software applications to mobile devices, period. Gaming is a part, and a large part right now, but I suspect that Financial will become the bread and butter over the next year or two and other applications could also become a much larger component of the picture as well.
And if the client base is an inidcation, Phantom Fiber's technology is apparently pretty good as evidenced by the fact that leading casinos, leading gaming sites and leading financial service firms are now using the platform across multiple industries.
The real question now becomes how does the company translate the ability to deliver a leading application delivery platform into a cash machine? I think that the recent announcement of FX Solutions GTS Mobile deal might shed some insight as to how Phantom Fiber will expand its profitability and do so with impressive margins.
Let's review. For the past few years, Phantom Fiber has been in more of a developmental stage. The Company identified several key components that would be required by potential customers and began creating the software that would address the most stringent requirements. From my understanding, 3 primary components, of equal importance, were addressed during the development stage:
1. Graphical interface
2. Speed
3. Security
Graphical interface that allows the mobile device user that have a near PC like experience on their mobile phone or PDA is most advanced in the gaming sector.
Speed is critical in software application delivery. Whether it is in gaming, financial services, healthcare, etc., the delivery of data at full mobile high speed is mandatory for current users.
Security is of the utmost importance in nearly all delivery applications. Of course, being involved in the financial sector, I tend to believe that the "most important" security measures deal with transactions involving the movement of money. This would include financial services and gaming programs. (I do realize that ANY and ALL data requires a 100% secure transaction, it is just that money transfer, at least to me, should be at the top of the list.)
In the gaming sector, the various game manufacturers have very sophisticated applications on casino and gaming websites. Users need to have the same functionality on their mobile devices as they are accustomed to on their personal computers. Phantom Fiber chose the gaming sector as its first market segment to target because this sector allowed Phantom Fiber to ensure that it was addressing each of the 3 major criteria (graphics, speed & security) while concentrating its marketing efforts on a targeted number of potential clients. Based on what I have read, Phantom Fiber has been successful in penetrating this market as it is the leading delivery platform in the mobile space for the Gaming Sector.
In my opinion, the announcement of GTS Mobile deal for FX Solutions is the start of the next phase at Phantom Fiber. While the gaming sector provided Phantom Fiber with the stage for developing and proving its delivery platform is the best available, I anticipate that the finacial sector will be the stage for showing the true power of Phantom Fiber from an operational and financial standpoint.
Providing the platform to banks, brokerage firms, etc. could create an income stream at Phantom Fiber that is not commonly seen at traditional software companies. Yes, Phantom Fiber will get the traditional installation fee, maintainence fees, user fees, etc. BUT, if it can also get a piece of the transaction fees that are generated as a mobile application is used - for example a fee for each stock trade that is completed at a brokerage firm - the cash flow annuity that would be developed over a growing client list could be tremendous.
When I started working on this company on June 4th 2008, the stock was bid at 16.5 cents per share. As I write this, it is currently bid at 27 cents per share. I personally think that we have only scratched the surface on what the value will be over the next couple of years. I am currently buying PHFB shares.
DISCLOSURE: Through First Capital Investors I have a contract with Phantom Fiber to provide advisory services. I receive a monthly fee for my advisory services. In my private equity holdings, I own stock and warrants in the company. Via Meehan Capital Management Group, I am currently acquiring shares in the open market for select investors of the MCMG Private Client Group.
And if the client base is an inidcation, Phantom Fiber's technology is apparently pretty good as evidenced by the fact that leading casinos, leading gaming sites and leading financial service firms are now using the platform across multiple industries.
The real question now becomes how does the company translate the ability to deliver a leading application delivery platform into a cash machine? I think that the recent announcement of FX Solutions GTS Mobile deal might shed some insight as to how Phantom Fiber will expand its profitability and do so with impressive margins.
Let's review. For the past few years, Phantom Fiber has been in more of a developmental stage. The Company identified several key components that would be required by potential customers and began creating the software that would address the most stringent requirements. From my understanding, 3 primary components, of equal importance, were addressed during the development stage:
1. Graphical interface
2. Speed
3. Security
Graphical interface that allows the mobile device user that have a near PC like experience on their mobile phone or PDA is most advanced in the gaming sector.
Speed is critical in software application delivery. Whether it is in gaming, financial services, healthcare, etc., the delivery of data at full mobile high speed is mandatory for current users.
Security is of the utmost importance in nearly all delivery applications. Of course, being involved in the financial sector, I tend to believe that the "most important" security measures deal with transactions involving the movement of money. This would include financial services and gaming programs. (I do realize that ANY and ALL data requires a 100% secure transaction, it is just that money transfer, at least to me, should be at the top of the list.)
In the gaming sector, the various game manufacturers have very sophisticated applications on casino and gaming websites. Users need to have the same functionality on their mobile devices as they are accustomed to on their personal computers. Phantom Fiber chose the gaming sector as its first market segment to target because this sector allowed Phantom Fiber to ensure that it was addressing each of the 3 major criteria (graphics, speed & security) while concentrating its marketing efforts on a targeted number of potential clients. Based on what I have read, Phantom Fiber has been successful in penetrating this market as it is the leading delivery platform in the mobile space for the Gaming Sector.
In my opinion, the announcement of GTS Mobile deal for FX Solutions is the start of the next phase at Phantom Fiber. While the gaming sector provided Phantom Fiber with the stage for developing and proving its delivery platform is the best available, I anticipate that the finacial sector will be the stage for showing the true power of Phantom Fiber from an operational and financial standpoint.
Providing the platform to banks, brokerage firms, etc. could create an income stream at Phantom Fiber that is not commonly seen at traditional software companies. Yes, Phantom Fiber will get the traditional installation fee, maintainence fees, user fees, etc. BUT, if it can also get a piece of the transaction fees that are generated as a mobile application is used - for example a fee for each stock trade that is completed at a brokerage firm - the cash flow annuity that would be developed over a growing client list could be tremendous.
When I started working on this company on June 4th 2008, the stock was bid at 16.5 cents per share. As I write this, it is currently bid at 27 cents per share. I personally think that we have only scratched the surface on what the value will be over the next couple of years. I am currently buying PHFB shares.
DISCLOSURE: Through First Capital Investors I have a contract with Phantom Fiber to provide advisory services. I receive a monthly fee for my advisory services. In my private equity holdings, I own stock and warrants in the company. Via Meehan Capital Management Group, I am currently acquiring shares in the open market for select investors of the MCMG Private Client Group.
Friday, June 6, 2008
Phantom Fiber: (OTCBB: PHFB)
I have just begun working with Phantom Fiber Corporation (OTCBB: PHFB) as their Investor Relations and Capital Markets Advisor. The Company is a software developer of applications for the mobile space. They are involved in bulding software apps for a number of industries including: Financial Services, Gaming, Medical Records, Logistics and many more.
The founder of Phantom Fiber, Jeff Halloran, is a seasoned veteran in the software space, particularly in the banking sector. was one of Larry Ellison's first employees (employee #6, I think) at Oracle (NASDAQ: ORCL) and helped to develop Oracle's international consulting business.
While completing a enterprise solution for one of the largest banks in Canada, Jeff and his team recognized a major shortfall in the way that software applications were being addressed when "real time" mobile applications were required. Mobile applications relied on a specific network carrier and had delays that were not compatible with performing transactions that need to be "real time". Phantom Fiber developed applications that solve this delay issue and work directly with the customer and their client base of users.
They have a very impressive client list and are partnered with some of the leading companies in multiple industries. They are already the dominant firm in the online gaming sector and are working diligently to become the dominant player in banking and financial services. Banking transactions, brokerage trading, currency trading, etc. etc. are all in the near term pipeline.
I have prepared an Investor Fact Sheet that is currently being reviewed by the Company and I will have it available at www.firstcapitalinvestors.com as soon as the Company's approval.
The Company has a very low number of shares outstanding with only 19M and about 70% or so of that is held by restricted insiders. Not a lot of stock in the float and I don't expect the stock to stay at its current levels for very long. Once some eyes are put on this stock, I expect that we will see a nice price appreciation.
DISCLOSURE: I have a contract with Phantom Fiber to provide advisory services. I receive a monthly fee for my advisory services and I own stock and warrants in the company as part of my compensation. I am currently acquiring shares in the open market for myself and my clients.
The founder of Phantom Fiber, Jeff Halloran, is a seasoned veteran in the software space, particularly in the banking sector. was one of Larry Ellison's first employees (employee #6, I think) at Oracle (NASDAQ: ORCL) and helped to develop Oracle's international consulting business.
While completing a enterprise solution for one of the largest banks in Canada, Jeff and his team recognized a major shortfall in the way that software applications were being addressed when "real time" mobile applications were required. Mobile applications relied on a specific network carrier and had delays that were not compatible with performing transactions that need to be "real time". Phantom Fiber developed applications that solve this delay issue and work directly with the customer and their client base of users.
They have a very impressive client list and are partnered with some of the leading companies in multiple industries. They are already the dominant firm in the online gaming sector and are working diligently to become the dominant player in banking and financial services. Banking transactions, brokerage trading, currency trading, etc. etc. are all in the near term pipeline.
I have prepared an Investor Fact Sheet that is currently being reviewed by the Company and I will have it available at www.firstcapitalinvestors.com as soon as the Company's approval.
The Company has a very low number of shares outstanding with only 19M and about 70% or so of that is held by restricted insiders. Not a lot of stock in the float and I don't expect the stock to stay at its current levels for very long. Once some eyes are put on this stock, I expect that we will see a nice price appreciation.
DISCLOSURE: I have a contract with Phantom Fiber to provide advisory services. I receive a monthly fee for my advisory services and I own stock and warrants in the company as part of my compensation. I am currently acquiring shares in the open market for myself and my clients.
Thursday, May 29, 2008
UPDATE: Gateway Int'l
I just received a call from Tim Consalvi, CEO of Gateway International Holdings, and he gave me the best news that I have had in quite a while. Gateway Int'l has filed for registration with the SEC!
To review documents or exhibits, see: SEC Form 10-12G
Tim indicated that he expects to receive comments from the SEC on a normal schedule (usually 30 days from filing) and that they will continue to move things forward as quickly as possible. The filing was submitted on May 16, 2008, so I am looking at middle of June as to the SEC comment period.
This is tremendous news for shareholders in Gateway Int'l. I repeat what I have said all along: This is a nice small cap company that continues to plug away at business. It is a bricks and mortar company made up of hardworking Americans who manufacture specialty components for large customers in aerospace, defense, automotive, medical equipment and other sectors.
My hat is off to the management team, Tim Consalvi in particular, for keeping a nose to the grindstone and making their way back. I know the people involved here and know what they have been through. I can tell all of the investors out there that they had to work hard to overcome some of the difficulties that they were presented. I look forward to the day when the company completes its registration and becomes trading again and I know there will be a smile of satisfaction for Tim and his team - one that is well deserved.
My congratulations to the management team at Gateway International Holdings!
DISCLOSURE: I worked with Gateway International Holdings for several years as their Investor Relations consultant. I am a large shareholder of their stock and have a fair amount of stock held by my clients and others throughout my network of relationships. And today is a good day. :)
To review documents or exhibits, see: SEC Form 10-12G
Tim indicated that he expects to receive comments from the SEC on a normal schedule (usually 30 days from filing) and that they will continue to move things forward as quickly as possible. The filing was submitted on May 16, 2008, so I am looking at middle of June as to the SEC comment period.
This is tremendous news for shareholders in Gateway Int'l. I repeat what I have said all along: This is a nice small cap company that continues to plug away at business. It is a bricks and mortar company made up of hardworking Americans who manufacture specialty components for large customers in aerospace, defense, automotive, medical equipment and other sectors.
My hat is off to the management team, Tim Consalvi in particular, for keeping a nose to the grindstone and making their way back. I know the people involved here and know what they have been through. I can tell all of the investors out there that they had to work hard to overcome some of the difficulties that they were presented. I look forward to the day when the company completes its registration and becomes trading again and I know there will be a smile of satisfaction for Tim and his team - one that is well deserved.
My congratulations to the management team at Gateway International Holdings!
DISCLOSURE: I worked with Gateway International Holdings for several years as their Investor Relations consultant. I am a large shareholder of their stock and have a fair amount of stock held by my clients and others throughout my network of relationships. And today is a good day. :)
Wednesday, May 21, 2008
OTCPK: OPRX (OPTIMIZERx)
OPTIMIZERx (OTCPK: OPRX) is one of the new companies that I have just begun working with and it is indeed an interesting story. This company just began trading publicly this month. The float is VERY tight and insiders control over 70% of the company. I don't expect a high volume of trading due to a $4 stock price and only about a 1.2M shares in the float, but as buyers come in and liquidity improves, I expect that the price will move a bit higher and upon completion of their financial audits and meeting listing criteria, I would think they would seek to move up to NASDAQ.
Basically, OPTIMIZERx, via its website www.optimizerx.com, provides an efficient platform for drug companies to reach potential patients. OPTIMIZERx builds out the virtual marketing and sales platform, Big Pharma pays to advertise, provide offers, discounts, trials, etc. via this platform and patients use the website to find the offers and save money.
In my opinion, a very big "key to success" for this company will be if they can attratct enough visitors to the site and get them to sign up. The internet has become a tool for many people regarding medical care these days and there are several very large networks that may be able to drive traffic. If OPTIMIZERx is able to partner up with some of these networks, in an effort to get a captive audience for their services, they could really do well and their margins would make many other companies envious.
Accelerating the network growth of OPTIMIZERx users is what allows the Company to generate revenues. For the majority of its sales, OPTIMIZERx utilizes the large advertising budget of Big Pharma and sells them space throughout the website and gets paid by the drug companies for patient referals.
The management team is a group of seasoned guys that have been in the industry for a long time. They understand that increasing their network is the primary goal to increasing the amount of users that utilize the service and therefore pay the bills.
There are several television interviews from a series that CBS did on this very subject. You can review them at the newly redesigned First Capital Investor website.
The initial Investor Fact Sheet is available for DOWNLOAD as well. As more material becomes available, I will be expanding the scope of the Investor Fact Sheet, but I wanted to have something up there for initial interest.
Keep an eye on this one, it could get interesting.
DISCLAIMER: First Capital Investors is handling Investor Relations for OPTIMIZERx and has agreed to a 1-year contract for 25,000 restricted shares.
Basically, OPTIMIZERx, via its website www.optimizerx.com, provides an efficient platform for drug companies to reach potential patients. OPTIMIZERx builds out the virtual marketing and sales platform, Big Pharma pays to advertise, provide offers, discounts, trials, etc. via this platform and patients use the website to find the offers and save money.
In my opinion, a very big "key to success" for this company will be if they can attratct enough visitors to the site and get them to sign up. The internet has become a tool for many people regarding medical care these days and there are several very large networks that may be able to drive traffic. If OPTIMIZERx is able to partner up with some of these networks, in an effort to get a captive audience for their services, they could really do well and their margins would make many other companies envious.
Accelerating the network growth of OPTIMIZERx users is what allows the Company to generate revenues. For the majority of its sales, OPTIMIZERx utilizes the large advertising budget of Big Pharma and sells them space throughout the website and gets paid by the drug companies for patient referals.
The management team is a group of seasoned guys that have been in the industry for a long time. They understand that increasing their network is the primary goal to increasing the amount of users that utilize the service and therefore pay the bills.
There are several television interviews from a series that CBS did on this very subject. You can review them at the newly redesigned First Capital Investor website.
The initial Investor Fact Sheet is available for DOWNLOAD as well. As more material becomes available, I will be expanding the scope of the Investor Fact Sheet, but I wanted to have something up there for initial interest.
Keep an eye on this one, it could get interesting.
DISCLAIMER: First Capital Investors is handling Investor Relations for OPTIMIZERx and has agreed to a 1-year contract for 25,000 restricted shares.
Monday, May 19, 2008
New FCI website coming soon!
I will be introducing a newly designed website in the next few days. When the new site goes active, I will be introducing 2 new clients. The site will have a couple of new features, including Live IR, so investors can direct questions to the FCI investor relations team throughout the day. I will try to answer them as best I can, as long as a team member is in front of the computer that runs the software.
I am also going to start putting a few more resources on the site for investors, such as newsletters and additional small cap analysts. If you know of a worthy newsletter or analyst, please have them contact my office to discuss inclusion on the site.
If you have not signed up for FCI News Alerts, send an email to optin2@firstcapitalinvestors.com and put Subscribe in the subject line. (The new site has a quick sign up built into it.) The service is free and I promise you won't be bombarded with daily emails. I personally prepare and send each email out when a client releases news or there is a notable development, so you only get emails from me that are actually of relevance.
Some updates on existing interests that have been discussed on this blog:
CryoPort - Nothing new to report. All indications are that the pilot programs are moving ahead, but they just take time. Word is that FedEx and the labs/biotechs are VERY pleased with the results thus far. I still believe that we probably won't hear anything worth writing home about until a deal is signed. Then, the real catalyst will likely be when we see an outsourced manufacturing program become public. The current facility can produce a few thousand units per month, which CryoPort is already using, but that is not what is going to make this company go to the next level. It will take a big facility to make the number of containers that I expect will be needed in the not to distant future, so that continues to be my focus.
Redux/Naturade - I am hearing that the deal should close by the end of May and that the companies are moving forward with getting all of the transaction details complete. The previously announced 1 for 6 reverse stock split should be implemented at the same time as the name changes and new symbols are issues. I am hopeful to see the final approvals this week so we can all know what the final distribution ratios will be.
Gateway International - Nothing new for the most part, just a time to exercise patience. Spoke with someone who would know and he indicated they are moving ahead and hope to refile a 10SB soon. When this company starts trading again, I am hoping that it will be trading with a trailing profit. It might not be based on "non-cash" items, but from my understanding, they are running at a healthy pace on operations. So even though they are a small cap, they are cash flow positive. The Eran Engineering subsidiary in the Precision Manufacturing Group seems to be accelerating, which should continue to improve operating margins and flow straight to the bottom line.
That's all for now. Stay tuned for the new site.
I am also going to start putting a few more resources on the site for investors, such as newsletters and additional small cap analysts. If you know of a worthy newsletter or analyst, please have them contact my office to discuss inclusion on the site.
If you have not signed up for FCI News Alerts, send an email to optin2@firstcapitalinvestors.com and put Subscribe in the subject line. (The new site has a quick sign up built into it.) The service is free and I promise you won't be bombarded with daily emails. I personally prepare and send each email out when a client releases news or there is a notable development, so you only get emails from me that are actually of relevance.
Some updates on existing interests that have been discussed on this blog:
CryoPort - Nothing new to report. All indications are that the pilot programs are moving ahead, but they just take time. Word is that FedEx and the labs/biotechs are VERY pleased with the results thus far. I still believe that we probably won't hear anything worth writing home about until a deal is signed. Then, the real catalyst will likely be when we see an outsourced manufacturing program become public. The current facility can produce a few thousand units per month, which CryoPort is already using, but that is not what is going to make this company go to the next level. It will take a big facility to make the number of containers that I expect will be needed in the not to distant future, so that continues to be my focus.
Redux/Naturade - I am hearing that the deal should close by the end of May and that the companies are moving forward with getting all of the transaction details complete. The previously announced 1 for 6 reverse stock split should be implemented at the same time as the name changes and new symbols are issues. I am hopeful to see the final approvals this week so we can all know what the final distribution ratios will be.
Gateway International - Nothing new for the most part, just a time to exercise patience. Spoke with someone who would know and he indicated they are moving ahead and hope to refile a 10SB soon. When this company starts trading again, I am hoping that it will be trading with a trailing profit. It might not be based on "non-cash" items, but from my understanding, they are running at a healthy pace on operations. So even though they are a small cap, they are cash flow positive. The Eran Engineering subsidiary in the Precision Manufacturing Group seems to be accelerating, which should continue to improve operating margins and flow straight to the bottom line.
That's all for now. Stay tuned for the new site.
Tuesday, May 6, 2008
Recession or Not, Small Caps Offer Upside
I receive a fair amount of commentary across my desk and computer with the various pundits pounding their chest as to what investment is best, what is the safest, what is defensive, etc. etc. etc.
I was reading a report today sent to me from Advisor Perspectives that back tested the last 4 recessions and how the common safety flight to "big caps" was not quite as effective as it is cracked up to be.
Advisors Perspectives: Questioning the Flight To Safety
This analysis shows that during tough times, some companies will get hurt, some will simply survive and that others will excel. The important aspect though is that on an overall basis, the true winners coming out of recession periods are the small caps that have good management teams who demonstrate the ability to be flexible.
This is exactly the situation that I discussed in the First Capital Investors, Q1 2008 edition of "The Small Cap Investor" when I featured Redux Holdings (OTC: RDXH).
At the present moment, I am unsure of what the final distribution of Naturade shares will be to Redux shareholders once the Redux assets are sold to Naturade, so there is some uncertainty there. However, once the full deal is announced, Redux definitely offers a reasonable option to small cap investors who want a company that maintains diversification, defensive positioning, downside protection, experienced management combined with a stock with upside potential.
Disclaimer: I own a lot of stock in Redux and I handle IR and Capital Markets issues for the Company for compensation. I have owned the vast majority of my shares for several years. The stock does not trade very much and I think the stock is currently "off the radar". Upon completion of the transaction with Naturade, the stock should start to see some attention as there are a number of firms that have indicated an interest, but who are just waiting for the full deal to be announced and close.
Stay tuned.
I was reading a report today sent to me from Advisor Perspectives that back tested the last 4 recessions and how the common safety flight to "big caps" was not quite as effective as it is cracked up to be.
Advisors Perspectives: Questioning the Flight To Safety
This analysis shows that during tough times, some companies will get hurt, some will simply survive and that others will excel. The important aspect though is that on an overall basis, the true winners coming out of recession periods are the small caps that have good management teams who demonstrate the ability to be flexible.
This is exactly the situation that I discussed in the First Capital Investors, Q1 2008 edition of "The Small Cap Investor" when I featured Redux Holdings (OTC: RDXH).
At the present moment, I am unsure of what the final distribution of Naturade shares will be to Redux shareholders once the Redux assets are sold to Naturade, so there is some uncertainty there. However, once the full deal is announced, Redux definitely offers a reasonable option to small cap investors who want a company that maintains diversification, defensive positioning, downside protection, experienced management combined with a stock with upside potential.
Disclaimer: I own a lot of stock in Redux and I handle IR and Capital Markets issues for the Company for compensation. I have owned the vast majority of my shares for several years. The stock does not trade very much and I think the stock is currently "off the radar". Upon completion of the transaction with Naturade, the stock should start to see some attention as there are a number of firms that have indicated an interest, but who are just waiting for the full deal to be announced and close.
Stay tuned.
Monday, April 21, 2008
Update: CryoPort (OTCBB: CYRX)
For the past couple of years I have been hearing that CryoPort (OTCBB: CYRX) is not a "real" company because they don't have significant revenues. Well to those people I would say that no R&D company has significant revenues ... its part of being an R&D company. But those doubters can no longer (at least with an ounce of credibility) say that CryoPort is not the real deal.
Today's news on CryoPort validates a lot of what has been discussed about this company over the past couple of years. The primary issue facing CYRX is getting the story in front of people. I am not quite sure what CarpeDM is actually doing. I am fairly confident that they are not an IR firm and they don't seem to be much of a PR firm either. Anyone in this business should absolutely know that this type of news needs to include trading symbols in the release. Today it was Federal Express (NYSE: FDX) that was not included and it is the same problem that we had last week with the Quest Diagnostics (NYSE: DGX) release.
April 21, 2008: Federal Express Release
April 17, 2008: Quest Diagnostics Release
Here is the rub. Let's say that there are 500 people that are currently watching CryoPort very closely. They buy when the stock price dips, they read the news, etc. etc. When news like these 2 releases becomes public, this information needs to be in front of A LOT of investors, both retail and institutional. However, by only including the CYRX trading symbol in the releases, no new investors are hearing about the company. It is only being discussed by the investors who already know about the stock, and most of them already own it. Had the ticker symbols for FedEx and Quest been included into the last two releases, CYRX would have been in front of hundreds of thousands, if not millions, of new investors. When good news on a lightly followed stock is seen by hundreds of thousands of new investors, the typical follow through is NOT what we saw over the last couple of days.
Why is this so hard to figure out? An investor who communicates with me regularly recently contacted Stuart Fine at CarpeDM and was told that the newswires are the ones to call and confirm whether it is okay to include another company's symbol in the release and he didn't want to delay the news because they weren't sure how long it might take to get an answer.
First, the newswires only call if the other company's ticker symbol is actually put in the release when it is submitted. Second, if you don't ask for permission to include their trading symbol in the release that they have already approved, you can be assured that you are not going to get it. Rest assured that FedEx and Quest approved their company's name to be included in the headline of the release. As such, I seriously doubt they would object to including the ticker symbol in the body. This news is positive news for their companies (FedEx & Quest) and every public company likes positive press.
Note to Stuart Fine ... Unless you have a better way to get 1,000,000 new investors to read your press releases, how about let's at least ask if we can put the ticker in there. I don't care if it takes an extra week to get the approval, the type of exposure that the last two releases could have generated can simply not be purchased through promotional campaigns or marketing of any kind or any budget.
Okay, enough of that. Here is the facts that we know. They are partnered up with FedEx. They are shipping samples all over the globe for Quest Diagnostics. I have discussed that there has been a world class manufacturer at play here for a long time (going on 2 years now) and they want to get a piece in a big way - a million square feet facility. Does anyone think that this manufacturer is going to drop a couple hundred million to ramp up a facility of this size if there is not going to be a HUGE amount of volume being demanded?
When CryoPort will finalize that deal, I am not sure. I can tell you this though, I own a lot of stock and I am NOT SELLING A SINGLE SHARE.
You want to own "the next Microsoft" ... well, here is your chance. All of the forces that are out there are trying to keep this company out of the spotlight ... in a short time, they won't be able to.
DISCLOSURE: I worked with CryoPort from late 2004 thru August 2007. I assisted them in the process of becoming a public company in 2005 and I am pretty comfortable with the story. On my private equity side, both my clients, and myself personally, own stock in CryoPort and I also personally own some warrants. For the record, I am not consulting to them at this time and have not personally spoken with anyone in management about the status or operations of the company since the fall of 2007.
Today's news on CryoPort validates a lot of what has been discussed about this company over the past couple of years. The primary issue facing CYRX is getting the story in front of people. I am not quite sure what CarpeDM is actually doing. I am fairly confident that they are not an IR firm and they don't seem to be much of a PR firm either. Anyone in this business should absolutely know that this type of news needs to include trading symbols in the release. Today it was Federal Express (NYSE: FDX) that was not included and it is the same problem that we had last week with the Quest Diagnostics (NYSE: DGX) release.
April 21, 2008: Federal Express Release
April 17, 2008: Quest Diagnostics Release
Here is the rub. Let's say that there are 500 people that are currently watching CryoPort very closely. They buy when the stock price dips, they read the news, etc. etc. When news like these 2 releases becomes public, this information needs to be in front of A LOT of investors, both retail and institutional. However, by only including the CYRX trading symbol in the releases, no new investors are hearing about the company. It is only being discussed by the investors who already know about the stock, and most of them already own it. Had the ticker symbols for FedEx and Quest been included into the last two releases, CYRX would have been in front of hundreds of thousands, if not millions, of new investors. When good news on a lightly followed stock is seen by hundreds of thousands of new investors, the typical follow through is NOT what we saw over the last couple of days.
Why is this so hard to figure out? An investor who communicates with me regularly recently contacted Stuart Fine at CarpeDM and was told that the newswires are the ones to call and confirm whether it is okay to include another company's symbol in the release and he didn't want to delay the news because they weren't sure how long it might take to get an answer.
First, the newswires only call if the other company's ticker symbol is actually put in the release when it is submitted. Second, if you don't ask for permission to include their trading symbol in the release that they have already approved, you can be assured that you are not going to get it. Rest assured that FedEx and Quest approved their company's name to be included in the headline of the release. As such, I seriously doubt they would object to including the ticker symbol in the body. This news is positive news for their companies (FedEx & Quest) and every public company likes positive press.
Note to Stuart Fine ... Unless you have a better way to get 1,000,000 new investors to read your press releases, how about let's at least ask if we can put the ticker in there. I don't care if it takes an extra week to get the approval, the type of exposure that the last two releases could have generated can simply not be purchased through promotional campaigns or marketing of any kind or any budget.
Okay, enough of that. Here is the facts that we know. They are partnered up with FedEx. They are shipping samples all over the globe for Quest Diagnostics. I have discussed that there has been a world class manufacturer at play here for a long time (going on 2 years now) and they want to get a piece in a big way - a million square feet facility. Does anyone think that this manufacturer is going to drop a couple hundred million to ramp up a facility of this size if there is not going to be a HUGE amount of volume being demanded?
When CryoPort will finalize that deal, I am not sure. I can tell you this though, I own a lot of stock and I am NOT SELLING A SINGLE SHARE.
You want to own "the next Microsoft" ... well, here is your chance. All of the forces that are out there are trying to keep this company out of the spotlight ... in a short time, they won't be able to.
DISCLOSURE: I worked with CryoPort from late 2004 thru August 2007. I assisted them in the process of becoming a public company in 2005 and I am pretty comfortable with the story. On my private equity side, both my clients, and myself personally, own stock in CryoPort and I also personally own some warrants. For the record, I am not consulting to them at this time and have not personally spoken with anyone in management about the status or operations of the company since the fall of 2007.
Friday, April 18, 2008
Update - OTCBB: CYRX (CryoPort)
Well, we are starting to see a dribbling out of news. Some of the news has been good, but some of it has been nothing short of amatuerish.
First, let's get the bad out of the way. The My Wallst page is nothing short of really bad. Really, really bad. NO public company should result to such low end tactics. I don't know who was responsible for this very poor move, but I would NEVER, EVER allow a client of mine to do such a ridiculous thing. Totally amatuerish and probably one of the absolute worst investor relations tools that I have ever witnessed.
The second set of less than stellar work that they did was not to include a ticker of Quest Diagnostics (NYSE: DGX) in their recent press releases. With the conservative stance that CryoPort has taken to date, it is obvious Quest Diagnostics is on board and I would bet that they even reviewed and approved the press release that included the Quest name in the header of the release. However, CryoPort lost a HUGE opportunity to get their stock in front of several hundred thousand investors by not including the Quest ticker in the release. If the Quest ticker is in the release, everyone who pulls up a quote for DGX would see the CryoPort news. While this requires the approval of Quest, I have confidence that this release received Quest's approval and I think it was just a poor job of public relations for not putting the ticker into the release. Period. End of story.
Now that I have aired what I think was done incorrectly, and those items are not insignificant, let's discuss what is going on that is good.
First, based on the recent release about Quest, I believe that my information has been confirmed and that the program described in a prior post was accurate. In a recent audio interview, the monologue that Peter Berry read to us included the term "partner with FedEx". This is the first time I have heard the company use the word "partnership" instead of "we will be shipping through FedEx". I was glad to hear Mr. Berry say "partner" because since the very beginning of the relationship, that has been the intention. I am also hearing word that the new partner site for FedEx clients to ship via CryoPort Express shippers will be up and running in the very near future. Possibly before the end of April, but I will be happy with May.
The next important piece of news that I am waiting on for confirmation of the various rumors out there is to hear that large-scale manufacturing has begun. When that occurs, the game is on. I heard a long time ago that the manufacturing firm was commiting A MILLION square feet. That seems to have been what a few others have heard as well. A million square feet is a lot of space and provides the location to produce several million shippers per month. At that rate, the numbers get VERY large.
Many people think that I am crazy when I start discussing CryoPort. "Trey has been drinking the CryoPort koolaid!" Well, maybe ... BUT, when this stock demonstrates that the company can ship a hundred million shippers each year around the globe, I think I'll trade in my koolaid for a Corona on the beach.
I don't want to wear this subject out as it will take its time to develop. The program is simply too big to just "turn on overnight". Big players involved. Legal teams to deal with at multiple Fortune 500 Companies.
If I get some helpful information in the interim, I'll keep you posted. Out.
DISCLOSURE: I worked with CryoPort from late 2004 thru August 2007. I assisted them in the process of becoming a public company in 2005 and I am pretty comfortable with the story. On my private equity side, both my clients, and myself personally, own stock in CryoPort and I also personally own some warrants. For the record, I am not consulting to them at this time and have not personally spoken with management about the status or operations of the company since the fall of 2007.
First, let's get the bad out of the way. The My Wallst page is nothing short of really bad. Really, really bad. NO public company should result to such low end tactics. I don't know who was responsible for this very poor move, but I would NEVER, EVER allow a client of mine to do such a ridiculous thing. Totally amatuerish and probably one of the absolute worst investor relations tools that I have ever witnessed.
The second set of less than stellar work that they did was not to include a ticker of Quest Diagnostics (NYSE: DGX) in their recent press releases. With the conservative stance that CryoPort has taken to date, it is obvious Quest Diagnostics is on board and I would bet that they even reviewed and approved the press release that included the Quest name in the header of the release. However, CryoPort lost a HUGE opportunity to get their stock in front of several hundred thousand investors by not including the Quest ticker in the release. If the Quest ticker is in the release, everyone who pulls up a quote for DGX would see the CryoPort news. While this requires the approval of Quest, I have confidence that this release received Quest's approval and I think it was just a poor job of public relations for not putting the ticker into the release. Period. End of story.
Now that I have aired what I think was done incorrectly, and those items are not insignificant, let's discuss what is going on that is good.
First, based on the recent release about Quest, I believe that my information has been confirmed and that the program described in a prior post was accurate. In a recent audio interview, the monologue that Peter Berry read to us included the term "partner with FedEx". This is the first time I have heard the company use the word "partnership" instead of "we will be shipping through FedEx". I was glad to hear Mr. Berry say "partner" because since the very beginning of the relationship, that has been the intention. I am also hearing word that the new partner site for FedEx clients to ship via CryoPort Express shippers will be up and running in the very near future. Possibly before the end of April, but I will be happy with May.
The next important piece of news that I am waiting on for confirmation of the various rumors out there is to hear that large-scale manufacturing has begun. When that occurs, the game is on. I heard a long time ago that the manufacturing firm was commiting A MILLION square feet. That seems to have been what a few others have heard as well. A million square feet is a lot of space and provides the location to produce several million shippers per month. At that rate, the numbers get VERY large.
Many people think that I am crazy when I start discussing CryoPort. "Trey has been drinking the CryoPort koolaid!" Well, maybe ... BUT, when this stock demonstrates that the company can ship a hundred million shippers each year around the globe, I think I'll trade in my koolaid for a Corona on the beach.
I don't want to wear this subject out as it will take its time to develop. The program is simply too big to just "turn on overnight". Big players involved. Legal teams to deal with at multiple Fortune 500 Companies.
If I get some helpful information in the interim, I'll keep you posted. Out.
DISCLOSURE: I worked with CryoPort from late 2004 thru August 2007. I assisted them in the process of becoming a public company in 2005 and I am pretty comfortable with the story. On my private equity side, both my clients, and myself personally, own stock in CryoPort and I also personally own some warrants. For the record, I am not consulting to them at this time and have not personally spoken with management about the status or operations of the company since the fall of 2007.
Wednesday, April 2, 2008
OTCBB: CYRX (CryoPort)
So the news is finally out about CryoPort starting "a pilot shipping program for a leading global diagnostic testing company". After a healthy delay, I presume not entirely at the desire of CryoPort, the news comes forth. Now for those who closely monitor CryoPort, this news is both long awaited, but somewhat anticlimactic.
What most of the investors that I have spoken with really want to know is "WHO" are the companies that CryoPort is doing business with? It is nice to say "a leading shipping company" (we learned later that it was FedEx), or a "leading global diagnostic testing company" (we learned later that it is ... ? )
There are posters on message boards that have thrown the name Quest Diagnositcs (NYSE: DGX) out there as a possible user of the CryoPort Express. Actually, I have also heard that name on several occassions, so in my opinion, where there is smoke, there might be fire. Hopefully the details will be forthcoming so we can know for sure.
In an effort to get ahead of the game, I have spoken with a number of people regarding Quest Diagnostics to try and determine a ballpark figure for the number of shipments that they are actually shipping. In my research, I have received similar numbers from two different sources that I believe to be reliable. From one source I heard an amount of "90,000 shipments every day of the year". From the other source, "over 32 million shipments per year". (For the math challenged out there, 90,000 x 365 = 32,850,000. So the numbers seem to be in line with each other.) Neither of these figures came to me directly from either company, so I have to keep some measure of doubt in there for now.
I have also heard, regardless of who the client is, that CryoPort will be controlling the entire process in this relationship. I have no idea as to how much of the 32 million shipments will eventually go through CryoPort, but I have "heard" (not confirmed by either company) that Quest would like move a large percentage of its shipping to the new shipping method if the pilot programs are successful. Now that might just be wishful thinking, but, if the other rumors out there on various sites and boards are accurate regarding the "million square foot European manufacturing facility", I would have to come to the conclusion that whatever the amount is, it is a LOT.
In my opinion, CryoPort is at the edge of something very big. There are not too many opportunities in an investor's lifetime to get into a company that can truly revolutionize an industry. Those types of opportunities are genuinely unique and make a difference in people's lives not just for a few years, but for generations to follow.
I think that we just might have one of those opportunities here with CryoPort.
DISCLOSURE: I worked with CryoPort from late 2004 thru August 2007. I assisted them in the process of becoming a public company in 2005 and I am pretty comfortable with the story. On my private equity side, both my clients, and myself personally, own stock in CryoPort and I also personally own some warrants. For the record, I am not consulting to them at this time and have not personally spoken with management about the status or operations of the company since the fall of 2007.
What most of the investors that I have spoken with really want to know is "WHO" are the companies that CryoPort is doing business with? It is nice to say "a leading shipping company" (we learned later that it was FedEx), or a "leading global diagnostic testing company" (we learned later that it is ... ? )
There are posters on message boards that have thrown the name Quest Diagnositcs (NYSE: DGX) out there as a possible user of the CryoPort Express. Actually, I have also heard that name on several occassions, so in my opinion, where there is smoke, there might be fire. Hopefully the details will be forthcoming so we can know for sure.
In an effort to get ahead of the game, I have spoken with a number of people regarding Quest Diagnostics to try and determine a ballpark figure for the number of shipments that they are actually shipping. In my research, I have received similar numbers from two different sources that I believe to be reliable. From one source I heard an amount of "90,000 shipments every day of the year". From the other source, "over 32 million shipments per year". (For the math challenged out there, 90,000 x 365 = 32,850,000. So the numbers seem to be in line with each other.) Neither of these figures came to me directly from either company, so I have to keep some measure of doubt in there for now.
I have also heard, regardless of who the client is, that CryoPort will be controlling the entire process in this relationship. I have no idea as to how much of the 32 million shipments will eventually go through CryoPort, but I have "heard" (not confirmed by either company) that Quest would like move a large percentage of its shipping to the new shipping method if the pilot programs are successful. Now that might just be wishful thinking, but, if the other rumors out there on various sites and boards are accurate regarding the "million square foot European manufacturing facility", I would have to come to the conclusion that whatever the amount is, it is a LOT.
In my opinion, CryoPort is at the edge of something very big. There are not too many opportunities in an investor's lifetime to get into a company that can truly revolutionize an industry. Those types of opportunities are genuinely unique and make a difference in people's lives not just for a few years, but for generations to follow.
I think that we just might have one of those opportunities here with CryoPort.
DISCLOSURE: I worked with CryoPort from late 2004 thru August 2007. I assisted them in the process of becoming a public company in 2005 and I am pretty comfortable with the story. On my private equity side, both my clients, and myself personally, own stock in CryoPort and I also personally own some warrants. For the record, I am not consulting to them at this time and have not personally spoken with management about the status or operations of the company since the fall of 2007.
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