Melissa Davis, senior editor of The Street Sweeper, poses with celebrity stock picker Jim Cramer after a recent taping of his "Mad Money" television show. Davis worked as an investigative reporter for TheStreet.com, where Cramer serves as chairman, before assuming her current role at The Street Sweeper.
Unilife Corporation (UNIS): Top 10 Reasons
by Sonya Colberg, Senior Investigative Reporter, 12/4/2013 9:42:10 AM
While Unilife Corporation (NasdaqGM:UNIS) is flying, TheStreetSweeper lists the Top 10 reasons we’re bearish and short this over-hyped safety syringe company.
1. Novartis deal does not guarantee an ongoing revenue stream. The UNIS syringes will be used in a clinical trial, requiring few syringes. If Novartis enrolled 500 patients in the trial and injected each monthly using UNIS syringes, UNIS could look forward to only about $5,400 in revenue over a year. No wonder the UNIS press release doesn’t give financial details. It could easily take Novartis 3 to 5 years or more to complete clinical trials and get Food and Drug Administration approval before it would need to order any substantial number of syringes.
2. Even if the Novartis clinical trials pass with flying colors and get FDA approval, the company could easily decide to order syringes instead from safety syringe gorilla Becton Dickinson, controlling an estimated 70 percent of the syringe market. Besides, a whistle-blower lawsuit suggests UNIS lacks the protocol and safety procedures to pull off production of what sounds to be a more complicated syringe for Novartis.
3. Big announcements, bigger disappointments. Investors shouldn’t read into UNIS press releases that upcoming large revenue streams will necessarily occur. The press releases tend to list minimum volume purchases of UNIS syringes. These minimums are only to preserve exclusivity. No one is obligated to buy a certain volume.
4. UNIS CEO Alan Shortall has a goal of about a dozen contracts by year’s end. So far, five have been announced, including the Novartis deal and a Sanofi deal that are re-warmed old contracts. Is the company likely to average almost two contracts a week for the rest of the year? Highly unlikely.
5. Of the announced deals, three involve significant pharmaceutical companies – yet the press releases frequently mention contracts worth $5 million upfront initially plus milestone payments and “expected” revenue and other wishy-washy terms. Before investors hit the “buy” function, they should know what the company’s milestone payments are based on, what the volume production would be and when, plus the length of the ramp-up period. Investors need substance, not hype.
Opko Health (OPK) Street brawl: Doc and multi-billion dollar medical candidates positioned for win
by Sonya Colberg, Senior Investigative Reporter, 11/25/2013 12:28:29 PM
Opko Health (OPK) Street brawl: Doc and multi-billion dollar medical candidates positioned for win
By Sonya Colberg, Senior Investigative Reporter
Opko Health (NYSE: OPK) may be sporting a shiner for now. But in this Street brawl, the big boy in the middle is a billionaire who wears that black eye like a badge of courage, knowing full well that adversity will make his company stronger. Besides, revenge will be so sweet.
Dr. Phillip Frost, the chief executive and chairman of OPK, is seeing a significant short position in his company. That doesn’t ordinarily bother him much, though the short interest is nearly 21 percent of the shares outstanding.
Anthony Bozza of Lakewood Capital (which is reported to suffer a 0.5 percent net loss partially attributed to its short portfolio) bloodied OPK’s nose a bit last week. He compounded the Wall Street drama when he presented his short thesis on the pharmaceutical company Friday during the Robin Hood Conference.
“We’ve always enjoyed a nice big short position,” Dr. Frost told TheStreetSweeper. “I know shorts who lost a lot of money … and later became my friends.”
Dr. Frost counts celebrity stock picker Jim Cramer, star of the “Mad Money” television show, among his many fans. A true believer in both the accomplished doctor and his company, Cramer enthusiastically recommended OPK back when it traded around the $5 range and remained bullish on the name even as the stock rocketed into double-digit territory. While Cramer understands the temptation to start booking those gains, and openly encouraged big winners to take some profits off the table a few days ago, he reiterated his ongoing support of OPK when TheStreetSweeper contacted him about the company over the weekend.
“I like it very much,” Cramer said in an email Sunday evening. “Many ways to win!”
Dr. Frost knows how to navigate the Food and Drug Administration, and is up on the latest technologies and discoveries in a complicated industry, Jake Dollarhide of Longbow Asset Management said this morning.
“You’ve got to give Dr. Frost a lot of credit for building a healthcare juggernaut,” he said.
“The next few years could certainly be a big opportunity for Opko,” Mr. Dollarhide said. “If those drug trials meet approval and those drugs are a success … we could certainly see the share price of Opko go significantly higher.”
Wall Street is stained by shaky companies overseen by shysters who happily mislead investors and then skulk away dragging bags of dirty money. TheStreetSweeper has exposed many of these fraudulent miscreants, shorted them and, in the process, tried to protect investors from painful losses.
But OPK is the rarest of rare finds for us. We like Dr. Frost. We like Opko Health. We like Dr. Frost’s assessment of his growing portfolio of sterling products:
“I’ve never been connected to any company with the potential of this one,” said Dr. Frost.
JAMN Finally Spills the Beans -- And It's an Ugly Mess
by Janice Shell, 6/2/2011 10:32:51 AM
To be sure, the 10-K offered investors little reason to sing. For starters, the filing reveals, this once-hot “coffee company” sells no coffee of its own at all. JAMN relies on a supplier based in frigid Canada – far away from the tropical Jamaican home of its co-founder Rohan Marley – to provide the company with an actual product to sell to its customers instead.
Back in April of 2010, JAMN inked a “supply and toll agreement” with Canterbury Coffee of British Columbia that gave it access to some brew. According to that agreement, JAMN relies on Canterbury to fulfill every role – save a minor one – normally satisfied by a firm that classifies itself as a coffee company. Canterbury purchases the coffee beans. It roasts them. And it then packages them in bags supplied by JAMN – the company’s only real product – for sale to the public.
JAMN signed this deal more than a year ago, right before Shane Whittle – a notorious Vancouver stock promoter – officially resigned as CEO of the company. But the company never mentioned that agreement, seemingly material enough to warrant at least a quiet 8-K report, in a single regulatory filing until now.
Jammin Java (JAMN): Hot Stock ... Bitter Aftertaste?
by Janice Shell, 6/2/2011 10:30:25 AM
It’s time to wake up and smell the coffee! That’s exactly what Jammin Java (OTC: JAMN.OB), a heavily promotedcoffee company, and – for very different reasons – TheStreetSweeper would like investors to do.
Since the beginning of the year, JAMN has miraculously risen from the ashes of the “Grey Market” graveyard to become one of the liveliest – and richest – stocks in the entire microcap arena. JAMN has seen its stock shoot straight toward heaven, soaring from 55 cents to peak above $6 a share on massive daily volume, with its market value nowtopping $355 million despite the company’s limited resources and operating history. (As covered in more detail below, two of the Internet tout sheets pushing JAMN the hardest effectively vanished -- disabled by their Internet servers -- on the day the stock’s trading volume exploded past 20 million shares.)
CCME: Few Signs of Life at 'Healthy' Chinese Firm
by Roddy Boyd, 3/23/2011 9:30:34 AM
Also, and this cannot be understated, hanging out on a sidewalk in Fujian–the sidewalks double as parking spots when the streets, which appeared to have been designed in the Han Dynasty, fill up–was not a viable option. There was also the matter of the world-class headache the Financial Investigator was developing from Fuzhou’s diabolical smell, an epic conflation of poor sewage treatment, air pollution and the smell of cabbage that made getting the hell off Dongjie street a matter of vital importance.
The Financial Investigator and his traveling companion for the trip, an American investor with extensive experience in China, decided to head upstairs despite our interview with the CFO having been cancelled at the last minute (with no explanation given.) We thought a quick tour of the offices and meeting a few other executives might open our eyes to a few things.
Though the language barrier was a little steep with the young receptionist–when we asked for writing paper, she provided Kleenex–we were in short order shown to their conference room and told to wait. It did not escape notice that pride of place in the conference room belonged to a framed certificate of participation from the Fall 2010 Rodman & Renshaw conference, the World Cup for reverse merger companies and the pumpers and touts who peddle them.
Eventually chief operating officer James Yu came down and after spending 30 minutes trying to understand who we were, concluded that giving us a tour wouldn’t hurt. Soon enough, his colleague, Vinne Ye–the chairman’s assistant–came out and took us around.
It was most eye-opening.more...
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