WEALTH on WIRE

Which insiders are selling and buying chunks of stocks? While trading penny stocks, insider open market trading is one of the best way to judge the stock movements.  

Below are lists of the top 10 open-market insider purchases and sales filed at the Securities and Exchange Commission in January 2010,  as ranked by dollar value. Company executives and directors are in the best position to assess the attractiveness of their firms’ shares, and here is how many of them are voting their wallets! Please note, however, that these are factual lists, not buy and sell recommendations. Dollar value is only one metric to assess the importance of an insider transaction.

SpongeTech® Delivery Systems, Inc. (OTC: SPNG – News) is pleased to announce a new soap-infused sponge designed for cleaning all marine surfaces and water crafts. The new “Marine Wash & Wax System” comes with one infused wash and wax sponge, one detail sponge, and one Eliminator™ chamois. The sponges are manufactured with the same patented technology used in SpongeTech’s innovative reusable cleaning products. They are embedded with specially formulated antibacterial soap and wax which dispenses only when wet and squeezed with the ability to wash and wax boats and water crafts multiple times. SpongeTech’s “delivery system” technology also inhibits the growth of germs and/or bacteria within the sponge.

The Marine Detail Sponge removes scuff and dock marks; polishes propellers; and removes dirt, scum, grease, oil, fish blood and salt residue, all while being safe for use on water crafts, fish finders, and GPS systems. The system also comes with an “Eliminator™ Chamois” which holds 8 times its weight in water and dries each vessel to a high shine.

SpongeTech’s COO Steven Moskowitz commented, “The marine products add significant value to our already popular product lines. We believe this is just what the marine industry needs to help keep boats and water crafts cleaner with an affordable multi-use product.”

The Marine Wash & Wax System is available to purchase online and is expected in retail locations this year.

SpongeTech® Delivery Systems is a company which designs, produces, and markets unique lines of reusable cleaning products for Car Care, Child Care, Home Care and Pet Care usages. These sponge-like products utilize SpongeTech’s proprietary, patent (and patent-pending) technologies and other technologies involving hydrophilic (liquid absorbing) foam, polyurethane matrices or other ingredients. The Company’s sponge-like products are pre-loaded with specially formulated ingredients such as soap, conditioner and/or wax that are released when the sponge is soaked and applied to a surface with minimal pressure. SpongeTech is currently exploring additional applications for its technology in the health, beauty, and medical markets. SpongeTech® Delivery Systems, Inc. intends to globally brand its products as The Smarter Sponge™.

Cord Blood America, Inc. (OTC Bulletin Board: CBAI), the umbilical cord blood stem cell preservation company (http://www.cordblood-america.com ) focused on bringing the life saving potential of stem cells, a biological insurance policy, to families nationwide and internationally, announced today that the Grand Opening of its Las Vegas corporate office and laboratory, beginning at Noon to 5 p.m. on Friday, January 22, 2010, will occur whether it rains or the sun shines.

“We anticipate nice weather and look forward to meeting all our investors. But even if Mother Nature doesn’t cooperate, our Grand Opening will go on,” said Matthew Schissler, co-founder and CEO. The facility is at 1857 Helm Drive, Las Vegas 89119, near the city’s airport in the Spencer Airport Business Park.

What is Biotechnology?

Biotechnology is technology based on biology, agriculture, food science, and medicine. Modern use of the term usually refers to genetic engineering as well as cell- and tissue culture technologies.

Biotechnology has applications in four major industrial areas, including health care (medical), crop production and agriculture, non food (industrial) uses of crops and other products (e.g. biodegradable plastics, vegetable oil, biofuels), and environmental uses.

For example, one application of biotechnology is the directed use of organisms for the manufacture of organic products (examples include beer and milk products). Another example is using naturally present bacteria by the mining industry in bioleaching. Biotechnology is also used to recycle, treat waste, clean up sites contaminated by industrial activities (bioremediation), and also to produce biological weapons.

There are different brances of  Biotechnology as a science. Red biotechnology is applied to medical processes. Some examples are the designing of organisms to produce antibiotics, and the engineering of genetic cures through genomic manipulation.  In this article we will look into red biotechnology primarily.

Most traditional pharmaceutical drugs are relatively simple molecules that have been found primarily through trial and error to treat the symptoms of a disease or illness. Biopharmaceuticals are large biological molecules known as proteins and these usually target the underlying mechanisms and pathways of a malady (but not always, as is the case with using insulin to treat type 1 diabetes mellitus, as that treatment merely addresses the symptoms of the disease, not the underlying cause which is autoimmunity); it is a relatively young industry. They can deal with targets in humans that may not be accessible with traditional medicines. A patient typically is dosed with a small molecule via a tablet while a large molecule is typically injected.

Small molecules are manufactured by chemistry but larger molecules are created by living cells such as those found in the human body: for example, bacteria cells, yeast cells, animal or plant cells.

Modern biotechnology is often associated with the use of genetically altered microorganisms such as E. coli or yeast for the production of substances like synthetic insulin or antibiotics. It can also refer to transgenic animals or transgenic plants, such as Bt corn. Genetically altered mammalian cells, such as Chinese Hamster Ovary (CHO) cells, are also used to manufacture certain pharmaceuticals. Another promising new biotechnology application is the development of plant-made pharmaceuticals.

NEW DELHI: Indian flagship carrier Air India, struggling with massive losses, has cancelled orders for five Boeing 777 planes, a report said on Friday.

A newspaper said the state-run airline was claiming 710 million dollars from the US planemaker for failing to deliver 27 B-787 aircraft on time.

“The cancellation orders have already been issued by my engineering department,” Air India chairman and managing director Arvind Jadhav was quoted as saying by the newspaper.

He alleged that Boeing’s failure to deliver the 27 B-787 planes had caused large losses for the company.

“The entire schedule of Air India has gone haywire. We have put a claim of 710 million dollars for their failure to deliver the aircrafts to us in time,” the Air India chief told the newspaper.

Spokesmen for both Air India and Boeing declined immediate comment on the report.

Air India in 2006 signed a formal agreement to buy 68 Boeing airplanes in a deal that was estimated to be worth around eight billion dollars.

The carrier said it would buy 23 777s, 27 787-8 Dreamliners and 18 next-generation 737-800s.

The list price for a single aircraft varies from 165 million to 200 million dollars but Air India was believed to have negotiated a lower price because of its large order.

The airline faces a financial crisis after posting an estimated one billion dollar loss for the fiscal year ended March 31 and is hoping for a big government rescue package.

Faced with a sharp downturn in air traffic and overcapacity, it is also seeking to cut overhead costs by rationalising routes and aircraft deliveries.

What are the viability of Biotech firms.  Why some biotech firms remains as microcaps for extended period, while some of them acquired by large pharma companies?

The truth is, it’s hard to find a successful large-cap biotechnology company because most get acquired before they reach large-cap status. Companies in biotech  industry are always in need of cash, whereas  big pharmaceutical firms are cash-rich and are  in desperate need of pipeline drugs.  These small-cap biotech start up firms are there easy catch.

Most biotechnology companies are started by a brilliant scientist with an idea, sadly a brilliant scientist is not always a brilliant businessman.  These companies dream of becoming the next Genentech, Amgen, or Genzyme. But building a successful biotechnology company takes a lot more than just a brilliant scientist with a great idea.

Most of the biotech companies trade at sub-$1 levels, because biotech drug development is both extremely expensive and very high-risk. As a result, most biotechnology companies either fail in the clinical program or run out of money while trying.  Most pharmaceutical names are sitting on billions of dollars in cash, while their late-stage research pipelines are drying up.

Most Biotech company management  are overconfident, under experienced, and fail to truly understand the competitive landscape for their drug. This results in biotech companies reluctant to partner with pharmaceutical companies too early in the development process, because they think they can either do it alone or they will command a far greater price the further along they develop the asset. 

In theory, this is true. The difficulties of commercializing a successful biotech drug, however, only increase as development pushes further along. And successfully completing a Phase III trial is not the finish line, it is just the start of a whole new marathon that now includes preparing an NDA/BLA, getting that application passed by the FDA, manufacturing the drug, and then, managing a sales force, as well as Wall Street expectations. As a result, an asset that was partnerable after encouraging Phase II data becomes unpartnerable after the Phase III trial fails or the FDA requests additional data prior to approval.

Penny Stocks can be extremely profitable, because it’s much easier to find a stock that goes from $.02 cents to $0.50 per share than finding a stock that goes from $10 to $200 a share.  Investing in penny stocks provides traders with the opportunity to dramatically increase their profits, however, it also provides an equal opportunity to lose your trading capital quickly if you are not carefull. These  tips will help you lower the risk of one of the riskiest investment vehicles.

What  they are  Penny Stocks?

While we all dream about investing in the next Microsoft or the next Home Depot, the truth is, the odds of you finding that once in a decade success story are slim. These companies are either starting out and purchased a shell company because it was cheaper than an IPO, or they simply do not have a business plan compelling enough to justify investment banker’s money for an IPO. This doesn’t make them a bad investment, but it should make you be realistic about the kind of company that you are investing in.

Trading Volumes

Look for a consistent high volume of shares being traded. Looking at the average volume can be misleading. If ABC trades 1 million shares today, and doesn’t trade for the rest of the week, the daily average will appear to be 200 000 shares. In order to get in and out at an acceptable rate of return, you need consistent volume. Also look at the number of trades per day. Is it 1 insider selling or buying? Liquidity should be the first thing to look at. If there is no volume, you will end up holding “dead money”, where the only way of selling shares is to dump at the bid, which will put more selling pressure, resulting in an even lower sell price.

 Does the company know how to make a profit?

While its not unusual to see a start up company run at a loss, its important to look at why they are losing money. Is it manageable? Will they have to seek further financing (resulting in dilution of your shares) or will they have to seek a joint partnership that favors the other company?

If your company knows how to make a profit, the company can use that money to grow their business, which increases shareholder value. You have to do some research to find these companies, but when you do, you lower the risk of a loss of your capital, and increase the odds of a much higher return. 

Have an entry and exit plan – and stick to it

Penny stocks are volitile. They will quickly move up, and move down just as quickly. Remember, if you buy a stock at $0.10 and sell it at $0.12, that represents a 20% return on your investment. A 2 cent decline leaves you with a 20% loss. Many stocks trade in this range on a daily basis. If your investment capital is $10 000, a 20% loss is a $2000 loss. Do this 5 times and you’re out of money. Keep your stops close. If you get stopped out, move on to the next opportunity. The market is telling you something, and whether you want to admit it or not, its usually best to listen.

If your plan was to sell at $0.12 and it jumps to $0.13, either take the 30% gain, or better still, place your stop at $0.12. Lock in your profits while not capping the upside potential.

How did you find out about the stock?

Most people find out about penny stocks through a mailing list. There are many excellent penny stock newsletters, however, there are just as many who are pumping and dumping. They, along with insiders, will load up on shares, then begin to pump the company to unsuspecting newsletter subscribers. These subscribers buy while insiders are selling. Guess who wins here.

Not all newsletters are bad. Having worked in the industry for the last 8 years, I have seen my share of unscrupulous companies and promoters. Some are paid in shares, sometimes in restricted shares (an agreement whereby the shares cannot be sold for a predetermined period of time), others in cash.

How to spot the good companies from the bad? Simply subscribe, and track the investments. Was there a legitimate opportunity to make money? Do they have a track record of providing subscribers with great opportunities? You’ll start to notice quickly if you have subscribed to a good newsletter or not.

One other tip I would offer to you is not to invest more than 20% of your overall portfolio in penny stocks. You are investing to make money and preserve capital to fight another battle. If you put too much of your capital at risk, you increase the odds of losing your capital. If that 20% grows, you’ll have more than enough money to make a healthy rate of return. Penny stocks are risky to begin with, why put your money more at risk?

Penny stock trading can provide opportunities for 100% or greater returns, often happening in days not years.  Many think that picking  gem stock requires extreme skill.  They are right to some extend.  The right piece of information together will skill makes the right ingradiant for picking  the winner.  Our Penny Stock tips will help you maximize the profit in trading. A lots of money is to be made in trading penny stock. 

Buy them before promoting. The best way to invest in penny stocks is by buying them before they are heavily promoted and hyped up in price.  Heavy promotional campaigns are important to penny stocks. Penny stocks are typically not covered by analyst. As a result, penny stock companies have to rely on heavy promotional campaigns to get the word out about their stock. If you get into the stock at the early phase of that promotional campaign, you could make a fortune.

Many penny stock will explode with in  few months of promoting.  If you check the history of penny stocks, you will find that most of them were trading at a decent price 15months before. However hard the market slams a stock, there’s always a chance the company will address its problems, perceptions will change and its share price will come storming back.

Buy the stock at low prices and wait for the price to rise so you can cash out big. Remember for  every stock, you should have an exit strategy.

Biotech is always an exciting sector for market players to invest in. In Biotech stock, risk is high but the returns are also sweet. Generally Biotech  firms are struggling to stay in business as research and developments costs eat through their cash positions.

Unfortunately, the only way that biotech companies have a chance at coming to market with a successful drug is by spending money on R&D.  Every Biotech or pharmacy company has to pass many hurdles before they come up with a successful product in the market. If you take the history of Biotech companies, most of them had been at the brink of Bankruptcy at one point of their life.  This is primarily due to the lack of income during the research and development stage of the product. It takes long to successfully develop, get approved by FDA and successfully market the product.  Check to see whether they have enough money to survive through this phase.

 A good way to gauge how well a biotech company is doing is to simply follow the FDA trials for its key drugs. If you follow the trials, you can see if any potential drug is advancing or showing positive results. Of course, these trials make for great catalysts for the stocks, especially when there is bullish news.

Keep watch on companies coming up on trials for phase II and phase III studies of FDA drug approval. Combine that key information with an unemotional view of a potential company’s stock chart, and you might be able to spot some big opportunities in the biotech sector.

There are a number of companies poised to report key clinical results, it might be well worth the time to evaluate their charts. So watch out for FDA announcements.

Intellicheck Mobilisa CEO Video:  Intelli-Check Mobilisa, Inc. develops and markets wireless technology and identity systems for mobile and handheld wireless devices for the government, military, and commercial markets.  The company was founded in 1994 and is headquartered in Port Townsend, Washington.  The companyfs products are used to address government and commercial fraud, focusing on age verification, secure access control and software tools, driversf license readers, and ID validation markets. The company is traded under thwe symbol IDN at AMEX.