DryShips, Inc. – DRYS (Warning)

Dryships, Inc. is a company that would not make it onto my radar, but I wanted to share with you the incredible disaster that has enveloped the poor shareholders of this company and why research/education is always IMPORTANT. There are some good companies that may go through rough patches in share price and then there are bad companies, period.

DRYS, within the last couple of years, has gone through around 7 reverse stock splits! Just completed the last split today. Crazy! Market education explains that reverse stock splits, for the most part, are BAD news. In the case of DRYS, it’s a legal way for the company to cover up the severe stock dilution that’s occurring from the company selling shares, which explains the established downtrend in price.

If you’re considering this stock, I must do my part in warning you to STOP IT!! To those who managed to escape, congrats. It’s got to be brutal for those caught in its jaws while also hilarious to see the near 99% loss of share price value. Reading the severe rage and anger spewing from ‘bag-holders’ on media sites can be a comical getaway. I encourage you to watch this vessel sink from the safety of my other growth stocks and take some lessons in witnessing poor company management!

 

*July 20 Update*

Reverse split number 8 or so, is being enacted. This 7:1 stock split is again the companies latest attempt to keep their share price above $1 dollar to remain on the Nasdaq market. I expect dilution to continue. Be warned, STAY AWAY!

22nd Century Group – XXII (continued)

This is the second continuation blog about 22nd Century Group to talk about their industrial hemp arm of the company. I recommend reading my earlier blog, if you haven’t done so already. Disclaimer plugin, I’m not a professional and don’t expect the investor jargon and lingo after every other word. I try to keep this as simple as possible. Always do your own research.

As I mentioned earlier, this company’s second globally disruptive breakthrough is its success in producing hemp with 0% tetrahydrocannabinol (THC) via genetic engineering. Oh wait, I forgot to add 0% “guaranteed.” No guessing for the farmers nor the regulatory agencies when using seed produced and certified from XXII. Today’s global hemp producers and especially in the U.S. must grow hemp crop that contains less than 0.3% THC. Any more than that threshold results in the destruction of the entire crop. Because of that requirement, many crop insurers do not yet provide insurance for hemp growers, a possible severe loss for the farmer. For example, recently in Kentucky approximately $20K was ordered to be burned for exceeding the THC limit. Many industrial hemp seed suppliers tout 0.2% THC or less but any farmer and business will find comfort in a 100% guarantee of 0% THC over a less than 100% guess.

If you’ve been under a rock recently, let me be the first to tell you the medical marijuana and hemp industries have been re-emerging into the mainstream here in the US. Growing industrial hemp is still illegal at the federal level but many states have removed legal barriers to permit growing of hemp. Kentucky is the state that produces the most hemp today leading Colorado, Oregon, North and South Carolina, and New York just to name a few. The uses for hemp include a large range of products. In fact, the market for hemp products is projected to increase by as much as 700% by 2020 and includes medical marijuana uses. The revenue potential for 22nd Century group, through its Botanical Genetics subsidiary, could exceed hundreds of millions of dollars if their technology becomes the sole global source for industrial hemp.

In the position detail section, I have readjusted my target price to $3.50 from the previous $1.60 which has already been surpassed. The potential with XXII is extremely enormous in the short term from both the tobacco and hemp technologies! More details to come…

 

22nd Century Group – XXII

Disclaimer, first as always. I’m not a professional and don’t expect the investor jargon and lingo after every other word. I try to keep this as simple as possible.

22nd Century Group is hands down my favorite company to date in all the markets in regards to growth potential. I’ll go into detail below but, dare I say, this company has the potential to obtain monopolies, yes monopoly status, in two different billion-dollar industries across the globe with its’ technologies. The first being in the global tobacco & smoking cessation market and the second in industrial hemp. In this post, we’ll focus on the tobacco and nicotine technology potential.

If you’re not familiar with this company, allow me to catch you up on the buzz. Who is 22nd Century Group? In a nutshell, quoted from Yahoo Finance, they are a plant biotech company, providing technology that allows for the level of nicotine and other nicotinic alkaloids in tobacco plants to be decreased or increased through genetic engineering and plant breeding. It develops smoking cessation products and modified risk tobacco products for smokers who are unable or unwilling to quit smoking and who may be interested in cigarettes, which reduce exposure to nicotine or to certain tobacco smoke toxins and/or pose a lower health risk than conventional cigarettes. The results of these efforts has produced products such as Magic 0, very low nicotine (VLN) cigarettes sold in countries overseas, Red Sun, high nicotine cigarettes sold in the states and overseas, Spectrum, VLN research cigarettes sold to the gov’t and accredited research organizations, and the potential global blockbuster product X-22, their smoking cessation product in development. In fact, one of the objectives for 2017 is the pursuit of authorization from the FDA and regulatory agencies in other countries to introduce the X-22 smoking cessation aid in development into commerce as a prescription-based smoking cessation medical product. Basically, smokers will now have the first option to quit smoking by using a cigarette, with reduced levels of nicotine for dependence and it comes with no additional side effects, rather than using products like Chantix or Nicoderm CQ patches. The company has a meeting with the FDA this month of June regarding the path forward for X-22 and the company expects to submit a more robust  Modified Risk Tobacco Product (MRTP) application to the FDA for X-22 sometime in the following months. Also, XXII is also working towards finding a partner to conduct a Phase III smoking cessation clinical trial for X-22. It is anticipated that this will mean receiving a cash infusion of approximately $25 million or more from that partnership agreement for the trial and eventual distribution of X-22, an important catalyst for the stock.

In addition, here are more facts to consider about 22nd Century Group:

  • Yearly revenue growth above 40%, on track for same EOY 2017.
  • Cash on hand anticipated to last through April 2018.
  • Hedge fund Blackrock Inc. discloses new position in latest 13F holding.
  • Recent insider buying from Management, see latest SEC Form 4 filings.
  • Recent addition to Russell 2000 to be confirmed June 23, 2017

I classify 22nd Century Group as a relatively young company starting at when its current CEO Henry Sicignano, III first took the reigns. From what I gather in research, XXII’s previous leaders failed in guiding the company towards a profitable path. Henry has concrete experience from his time at Sante Fe Natural Tobacco Company and the current share price is reacting to the progress of his vision. Going forward, we can continue to expect very interesting and lucrative developments to come from 22nd Century Group and its transparent management. Upcoming catalysts should be the announcement of a partner for X-22 and possible industrial hemp deals, which I will discuss in my next blog. The current price target of $3.50, established by Chardan Capital Markets, will be due for an upgraded review once these catalysts have surpassed. Certainly more details to come.

Aoxing Pharmaceutical Company – AXN

The Chinese Pharmaceutical landscape is chock full of companies. Many with cutting edge developments and growing revenues. In particular, the demand for pain management medication is growing as the culture is slowly transitioning from one rooted in traditional beliefs and herbal therapies to one of pills and operations. I’m attributing this trend to advancements in therapies and western influence. This brings me to Aoxing Pharmaceutical.

Continue reading…