Stock Discussion

If anyone is up for it, let us discuss some specific investment ideas. I’ll throw a few out to start, all have lots of cash, strong profit growth and decent margins: Elbit Systems (ESLT) - Israeli defense electronics maker. I think in the future we should expect more automated systems such as UAVs, and I think this company is well positioned to benefit from this growing market. This is a lot smaller than larger US defense firms and unlike US firms, I don’t believe it is restricted as much from selling technology to other countries. Somanetics (SMTS) - Small firm, makes equipment for monitoring oxygen levels noninvasively, I believe just by applying the sensors to the skin. The sensors are disposable, like razorblades. Turkcell (TKC) - This one I don’t know too much about, but it looks interesting, dominant telecom player in Turkey, an emerging market, good revenue growth, strong dividend. I am looking at firms with strong fundamentals in emerging markets that are big players there, but still relatively small compared to the largest global ones.

Cyclacel Pharma (CYCC) - micro-cap, speculative, biotech stock. My pick as the next DNDN/HGSI. Very good management with renowned scientists on their payroll, not your typical pump and dump. Extremely low float of about 22 million shares. Two issues all small biotech companies have to combat with: 1) the uncertainity that is FDA approval 2) whether they have enough cash to last them till buyout/partnership/manufacturing Read the bio on Judy Chiao (used to be the primary reviewer of oncology drugs at FDA) under their management team. Of course, this by no way is guaranteeing it drugs approval, but having her on the team is a huge beneficiary. She knows what the FDA is looking out for. The company has enough cash to last till mid 2011. The CEO mentioned that they are not looking to sell the company, but is more interested in the form of a partnership. They have three main oncology drugs, with 1 awaiting FDA SPA for phase III, and the other one in phase II. Extremely favorable clinical results thus far with excellent peer reviews, all without the toxicity of chemotherapy (their treatment is in the form of a pill, taken orally). In addition, the drugs are showing remarkable promise as part of cocktail drugs. Their drugs addresses a $2-5 billion market, with the potential of this amount to increase as the life expectancy of patients increase. Currently, the few drugs that is treating the disease are seeing their patents expiring within the next year or so. This is it in a nutshell. Do you DD on it and you will see for youself it is a very decent albeit speculative company.

Interesting find. It may be a prospect, but I don’t feel it’s a good idea to invest in a firm before it shows profitability. Also, if they have a reviewer on board, she can probably pull a few strings.

Speculative for sure, but you are betting on the potential it has in the future. This is the kind of 5-10x bagger you hear them talking about.