Thursday, June 19, 2014

StemCells CEO's Letter Once Again Shows Catalysts And Why You Should Invest In June $STEM

With today's dramatic runup in $STEM shares, had to share this. This was my rejected article from June 4th:

Investing in StemCells (STEM) is not for the faint of heart. The stocks sees large double digit gains and losses on a monthly basis, as the company updates investors on trials and upcoming events. A recent letter from StemCells' CEO should have investors bullish on this long term play going into an exciting month and year full of catalysts.
StemCells CEO Martin McGlynn is active in letting investors know what is going on with his company. He tells investors it is "important to have regular updates to keep you informed of the remarkable progress we are making".
Here are the highlights from McGlynn's latest letter to shareholdersand future investors:
· Over the next two years, clinical data from two Phase II studies will be released. This data will center on StemCells progress in studies related to spinal cord injuries and eye injuries
· StemCells recently completed enrollment in a Phase I/II spinal cord injury trial. This is the world's first human neural stem cell transplantation in chronic injury
· 4 of 8 current patients have experienced return of sensation
· Phase II clinical trials this fall will be completed in as many as 12 clinical trial centers
· Enrollment in Phase II SCI test expected to be completed in 12 months, with results coming 12 months later
· Enrolled 13 of 16 patients in a Phase I/II dose escalating trial geographic atrophy of age-related macular degeneration.
· Looking for a partner for further Phase II trials in the areas of NCL (Neuronal ceroid lipofuscinosis, aka Batten's Disease) and PMD (Pelizaeus merzbacher's disease)
· Cited the following as valuation drivers:
o People
o Alliances
o Intellectual property
o Research and development
o Financials
o Market opportunity
· Working on transforming "groundbreaking science" into "breakthrough medicine"
· Ended quarter (3/31) with $26.5 million in cash
Upcoming Catalysts
· June 19th: will present interim results of a test for age-related macular degeneration, trial is to test safety, tolerability and preliminary efficiency of one time transplant of stem cells, presentation taking place at International Society for Stem Cell Research in Vancouver, taking place June 19th through June 21st
· June 29th: will provide an additional update on the company's spinal cord trial at the Annual Symposium of the National Neurotrauma Society in San Francisco June 29th through July 2nd
· Fall 2014: Investor R&D Day, company will provide several items at this event including:
o Provide additional data from the Phase I/II AMD and SCI trials
o Provide clinical study design details for the planned Phase II controlled trials
o Hear from key opinion leaders in spinal cord injury and retinal degeneration
o Provide investors with a forum to have their questions addressed
Aside from the CEO letter, StemCells has also provided a couple of news releases investors shouldn't overlook. On May 21st, StemCellsreported the first 5 patients in a 16 patient AMD trial. On May 19th, StemCells announced that 2 patients had sensory functions from its spine cord injury trial. This brought the total up to 4 patients who had regained sensory function. The more impressive part is that the patients who have seen some function range in an elapsed time of 4 to 24 months from their injury. This shows the possibility of stem cells and the restoration of function in those with spinal cord injuries.
I have wrote about StemCells several times (January 2014July 2012), urging investors to invest in this lottery ticket medicine company. Shares are now down since those articles. Shares are trading up 6% in 2014, but remain down 25% in the last 52 weeks. This is a company who routinely sees its shares jump 10 to 20% on positive news. The events in June and the investor day in the fall will likely see large jumps. While shares may also fall from those jumps, eventually shares will see value and not trade in the $1 to $2 range anymore.
StemCells continues to have a relatively small market capitalization, despite a leading position in the stem cell research market. The company owns a patent portfolio that is well ahead of rivals, as Nature Biotechnology calls three patents "among the five most fundamental neural stem cell patents". StemCells has the SCI and AMD trials going on, but also has pre-clinical tests dedicated to PMD, stroke, and Alzheimer's. In 2012, StemCells shares jumped 70% on bullish notes of stem cells being used to treat Alzheimer's.
Shares of StemCells have traded between $1.15 and $1.87 over the last 52 weeks. With shares trading around $1.40 and approaching several milestones, investors may want to consider starting a position now in this long term play.

Friday, September 20, 2013

The Wizard of Oz Fever Coming Back

One of my favorite movies of all time, "The Wizard of Oz", is coming back to theaters. The beloved 1939 movie is set to come back to IMAX theaters for a one week run. Hopefully I will be lucky enough to make it to the theater to see what enhanced picture and sound can do for one of the most important movies of all time.

Here was my article on how this will boost IMAX stock

Also, remember that "The Wizard of Oz" is coming to television through several networks. The movie will be the central focus on several new shows. Read my highlights here:

*Disclosure-Long shares of IMAX*

Friday, August 2, 2013

Amazon Prime vs. Netflix Streaming

Just wanted to share with any of my readers or followers. I am now writing for national magazine Variety as well. Here is my first article discussing the comparison between Amazon Prime and Netflix streaming. Please check it out and share.

Amazon Prime vs. Netflix

Sunday, July 28, 2013

Zumba Kids: Will Investors Follow Majesco Entertainment Into Newest Venture?

Small video game company Majesco Entertainment (COOL) has seen its shares drop 42% in 2013. The drop comes off of earnings misses and lowered guidance. The gaming company, popular for its Zumba Fitness line of games, is trading for around $0.60 a share. Can two new gaming updates send shares back above $1.00?

On Friday morning, Majesco Entertainment announced its plans to launch "Zumba Kids" for the XBOX 360 Kinect and Nintendo Wii. The game will target kids ages 7 to 12. Mini-games and dances feature over 30 songs, including hits from Justin Bieber and Willow Smith.

The game has a chance to be successful for Majesco Entertainment. "Zumba Kids" will potentially have a cool factor among kids, as the "Dance Central" games have proved popular with children. The game could also be a good gift idea from parents, as it represents a way for kids to possibly lose weight. There are millions of overweight kids in America. The game could get the blessing from healthcare organizations if it can get kids off the couch and playing a movement based game.

"Zumba Kids" will be released during the holiday season, which could also help propel sales. The game pairs nicely with the latest Zumba Fitness game, "Zumba Fitness World Party". "Zumba Fitness World Party" will be released in October for XBOX One, XBOX 360, Nintentdo Wii, and the Nintendo WiiU.

Weeks ago, Majesco Entertainment announced its "Zumba Dance" game for the iPad and Android based tablets. Available for $4.99, the game is one of the best-selling health and fitness games in over 45 countries. The tablet version is similar to the console game and offers 20 to 60 minute workouts, tracks calories, and also helps users find live classes nearby.

The new kids game doesn't solve the problem of Majesco's dependence on the Zumba Fitness line. However, the game does help expansion of the franchise into new markets. The two new console games and tablet based version offer excitement to the stock. Strong sales of each of these products could lead to a revenue and earnings beat for the fiscal year. Any positive news and sales movement could send shares back over $1.

Analysts expect Majesco Entertainment to post a loss of $0.15 per share in fiscal 2013. Revenue is expected to decline 48.7% to $132.3 million. As you can see, analysts aren't expecting much from the company. If any of these games surprises or posts strong sales, Majesco investors could be in for a wild ride upwards. In fiscal 2014, the company is expected to post a profit of $0.01 with revenue returning to $84.0 million. Majesco is a great speculative stock going forward with a high risk high reward opportunity going into the 2013 holiday season.

*Disclosure-Author Owns Shares of COOL at Time of Writing*

Friday, July 19, 2013

Gluu Mobile Scores Big With MGM Deal For Robocop And James Bond Games

Shares of Gluu Mobile (GLUU) shot up in early morning trading Thursday before settling with a modest gain. The company released an 8K that shows a new deal with MGM. The announcement includes warrants from MGM to purchase up to 3.33 million shares of Gluu Mobile shares. This news could have a huge impact on shares in the near and long term.

Details of the warrants include:
· Rights to make games based on Robocop and James Bond
· Rights to purchase up to 3,333,333 common shares at $3 each
· Expiration on warrants on July 15, 2018
· First 333,333 vested and become exercisable on July 15
· 333,333 shares vest and become exercisable at release of a new mobile game based on MGM intellectual property (does not include first Robocop game)
· 1,000,000 shares vested and exercisable with release of new James Bond game and also 1,000,000 shares per sequel until limit reached

Friday, April 12, 2013

Comcast's Syfy Network And Trion Worlds Potentially Changing Video Game Industry With Defiance

On Monday, Syfy Network will premiere its new show "Defiance". The unique part about this new show from Comcast (CMCSA) owned Syfy is its accompanying video game. This isn't a video game based on a tv show, or a tv show based on a video game. The two are connected and will give players and viewers the most unique experience.

The video game from Trion Worlds is the first to connect to a television show at the same time. Players will have new missions after every episode airs and will have an impact on the show's storyline based on gameplay. By connecting to the television show, Trion can release downloadable content (DLCs) and gain additional revenue.

The show is set in the future in the town of Defiance, similar to St. Louis. "Defiance" is complete with aliens, post war survival, and human struggles. The show will provide a lift to the network that has struggled to showcase original content since "Battlestar Galactica". The channel now counts on reality shows to gain viewers.

There are 13 episodes scheduled to air between Monday and July 8th. A huge budget of over $40 million was spent on the first season. The show was paid for by Comcast and Trion Worlds. Syfy is hoping for a renewal if ratings are strong. Trion has already begun working on a follow up game based on a second season.

The potential for Comcast and its Syfy network is huge. Back in 2009, Syfy charged $0.21 per subscriber to large cable companies. With a declining fan base and viewers, the network has even turned to WWE (WWE) to showcase "Smackdown" on its network. "WWE Smackdown" is shown on Fridays and most recently had 2.52 million viewers.

"Defiance" has also already seen several international pickups, providing additional revenue for Comcast. The show will also air in Brazil, Canada, France, United Kingdom, Ireland, Germany, Spain, Portugal, and Australia.

The Defiance video game was released this month and has seen strong sales for a new brand. According to, the game has sold 170,000 copies on XBOX360, 70,000 copies on Playstation 3, and 50,000 copies for the PC. Sales remain strong and the game is currently on Amazon's top 100 selling video game list. The game will likely see strong sales this week as the show airs.

The impact on the video game industry could be huge. Two companies recently released games based on AMC's (AMCX) "The Walking Dead". "The Walking Dead", which is the most popular show on television, saw releases from Telltale Games and Activision (ATVI). The Telltale version, which follows an episodic storyline has sold 400,000 copies on the XBOX360 and 250,000 copies on the Playstation 3. The Activision version titled "Survival Instinct" has sold 210,000 copies on the XBOX360 and 140,000 on the Playstation 3.

Imagine that if "Defiance" is successful, television shows following video games will start popping up. Old franchises like Mortal Kombat, Street Fighter, and Resident Evil could all see a boost in game sales with a new version surrounding a television show. A successful "Defiance" could also lead to a buyout of Trion Worlds by a larger company. The video game company is partially owned by Comcast, Time Warner (TWX), and the Ontario Teachers' Pension Plan.
As "Defiance" airs on Syfy Monday, it won't be just science fiction fans watching, but an entire video game industry. This new move by Trion Worlds and Syfy could be just the boost the declining video game market needs.

The potential winners to watch in this video game/television partnership are:
  • Comcast-company owns the Syfy channel and will be able to charge other cable networks more in subscriber costs thanks to higher viewer numbers.
  • Time Waner-owns Mortal Kombat, Batman Arkham brand which could also translate well from a television series and game concept.
  • Activision Blizzard-has large library of games and cold make a play into this avenue. Could also utilize strong bases with its MMORPG games and turn them into televisions shows.
The biggest winners in this new format could be the video game consoles. Consider investing in Sony (SNE) or Microsoft (MSFT). Both have new consoles hitting the market soon, but could see a lift in current games with a television following. A new audience of video game players could emerge from shows like "Defiance". Shows like "American Idol" and "Dancing with the Stars" don't just do well for the talent. It is the human interaction where people have an attachment.

*Disclosure-Chris is long Activision Blizzard (ATVI) 

Sunday, July 22, 2012

Anger Management Week 4 Numbers Rebound

An appearance from Denise Richards on Week 4's episode of Anger Management seemed to help ratings. Anger Management ratings were up amongst men and women in the Charlie Sheen comedy in its fourth week. Denise Richards, Charlie's ex in real life, played a woman who didn't believe in Sheen's character's profession, therapy. Sheen stars as a former baseball player (a stretch from the former Major League
character "Wild Thing") who had an anger problem while he played.

The Week 4 episode of Anger Management saw 2.65 million viewers. The show continues to be strong in the much coveted 18-49 age range. The key advertiser demographic saw 1.42 million viewers. With two episodes premiering in its first week, the show is now 5 episodes into its debut season.

Two weeks ago, I wrote about Week 2's ratings of Anger Management dropping. Week 3 saw similar declines in viewers. This set up poorly for Lions Gate Entertainment (LGF), the company behind the Anger Management television show. Lions Gate has commitments for 10 episodes already and has signed multiple international broadcasting deals for the new Charlie Sheen comedy. As I wrote before, Lions Gate also has a pending deal for 90 episodes of Anger Management if it can sustain certain viewer milestones throughout the first ten episodes.

Earlier I also wrote that Lions Gate and News Corporation, the owner of FX Channel, were Winning With Charlie Sheen. Both companies have large television and movie presences. A 90 episode television show could benefit both companies. The way the deal is set up is to save money for the studio as well by shooting a more rapid schedule to get all episodes done as fast as possible. With international rights already being signed at a rapid pace, Lions Gate could really cash in with a 90 episode deal.

*Disclosure - I Own Shares of LGF

Saturday, July 21, 2012

Will Dreamworks Animation Win in its Bid for Classic Media?

On Wednesday, I reported that Dreamworks Animation (DWA) was set to acquire Classic Media. Classic Media is the owner of a large library of cartoon characters. Some of these characters have been turned into television shows or movies. No official decision has been made by either Dreamworks Animation or Classic Media.

The key brands owned by Classic Media include:

Stem Cells Has Huge Week

I wrote an article on Stem Cells (STEM) for Seeking Alpha last week. The article (found here) talked about how the stock ran up from results of an Alzheimers study. When that article was published, shares were up 70%, before they ultimately were up over 100% in one day. The stock is a "penny stock", with a price under $5 a share, and saw huge volume that led to the large percentage increase.

From StemCells website, here is the current pipeline:

Spinal Cord Injury - Clinical Development

PMD - Clinical Development

AMD - Pre-Clinical

Alzheimer's - Pre-Clinical

Stroke - Pre-Clinical

Liver Metabolic Disorders - Pre-Clinical

Hepatitis C - Research

As you can see, StemCells is working on different areas of the body focusing on the eyes, spinal cord, and brain. These all represent areas critical to survival for humans. The areas are all also underserved by the medical community with treatments.

Are you looking for small biotech companies that could jump on positive news? Follow along with my monthly newsletter coming in Auguust or September. The newsletter will be free or under $5 a month. You can email me at or follow this site for more information. The newsletter will have an area dedicated to drug stocks. Sample trackable portfolios will also be included, where StemCells will most likely have a position for the long term.

Wednesday, July 11, 2012

Buy Stock in Manchester United Football/Soccer Team

"Glory, glory Man United
Glory, glory Man United
Glory, glory Man United
As the reds go maching on"

Manchester United fans in North America will soon have a chance to stand behind their favorite team and buy shares.

The English Premier League team owned by Malcolm Glazer,

Video Game Industry in 2013

Anyone who follows my posts on Seeking Alpha or on this blog may know by now that I write about the video game sector a lot. I do not own a video game console or play video games, so where does this knowledge and love for video games come from? Well, it might be that at present time I own shares of three video game companies (ATVI, COOL, THQI). Despite a move away from hardware titles to social, mobile, and digital games, consumers are still buying big blockbusters every year. I wrote an article on Seeking Alpha recently ("Investing in the Video Game Sector in 2013") that provided an early look at blockbuster titles that will be coming out next year.

CNBC provided a list of The Ten Most Anticipated Video Games for 2013:

  • Grand Theft Auto V

Lions Gate Splits Mockingjay Into Two Films, The Hunger Games Trilogy Becomes Four Blockbuster Movies

Hunger Games - Katniss Aiming
Hunger Games -...

Buy This at

Lions Gate Entertainment made the smart decision to split up the third Hunger Games book into two movies. Mockingjay will be released as two movies in 2014 and 2015. The release dates for all of The Hunger Games movies have now been made official. Official release dates are:

  • Catching Fire: November 22, 2013
  • Mockingjay Part 1: November 21, 2014
  • Mockingjay Part 2: November 20, 2015
This decision...

Fender Guitar IPO Preview

Guitar maker Fender is set to test the public markets with a 10.71 million share IPO. The company is set to sell shares in a price range of $13 to $15.

Brands owned by Fender include:
  • Fender
  • Squier
  • Jackson
  • Guild
  • Ovation
  • Latin Percussion
Fender also is the North American distributor for Sabian cymbals, one of the largest percussion companies. Fender guitars have been played

Monday, July 9, 2012

The Walking Dead Video Game Coming From Activision

Activision added one of the most popular television shows to its lineup of 2013 video games. The Walking Dead, which airs on AMC, hit record numbers for its Season 2 Finale. The show has increased in popularity over its 19 episodes. The third season premieres in October on AMC. There already is a episodic game put out allowing players to play a two hour scenario each month involving the characters of The Walking Dead. You can buy that game for $24.99 below for PC or Mac. I also wrote an article on how to trade AMC and ATVI (Did Activision Score a Blockbuster With The Walking Dead Video Game Rights?).

*Disclosure-I Own Shares of ATVI*

Top Ten Stocks for 2012 Mid Year Update

Hard to believe that 2012 is officially half way over. That means its time to check in on my annual top ten stock picks for the year. Follow the link to see results.