Portfolio Update – XXII and PRPO

As is customary with any semi-active trader, periodic review of the companies in your portfolio is both critically and obviously important to maintain meaningful growth. In other words, I think of each portfolio dollar as an employee of my company. As manager, you want to move employees into areas where they each will continue to create the most productivity.

With that, the decision is to change gears and reduce my holdings in XXII and move those proceeds into PRPO. Here’s why. 22nd Century Group, Inc. has tremendous potential with both their hemp and tobacco technologies. Unfortunately, it seems as though the company is taking a passive approach in growing its market presence. Their tobacco arm, and its low nicotine technology we all know, is in the hands of the Food and Drug Administration. There’s no question here that any development will take years to bear fruit and translate into revenue for the company. Now turning to their hemp arm and its breakthrough technology; 0% THC industrial hemp. Industrial hemp of any THC level (not Mary Jane) has been approved to grow legally in at least 37 U.S. states so far and counting. However, not hearing a word from management, it seems the company maybe keeping the tech in New York with its infant hemp infrastructure. Outside of NY for example, North Carolina already has a seasoned infrastructure already built out supporting the end-to-end production cycle of hemp from growth to processing, yet farmers there and globally still run the risk of losing their crop due to some plants possibly containing more the 0.3%THC. This ‘inactivity’ regarding the company’s revolutionary technology leads me to think to not expect anything significant for the next 4 to 5 months.

In the same aforementioned timeframe however, I expect Precipio, Inc. (PRPO) will be making some significant progress in its’ business development which will soon be reflected in the company’s stock price. The potential announcement of a IV-Cell licensing deal in June and the potential release of new biopsy kits supporting additional tests should add appreciating share price growth which will bring it closer to my target price of $1.08. Time will tell! Always do your own research and best of luck!

Precipio, Inc. – PRPO

I’ve been watching the ebb and flow of the market, keeping an eye out for potential accelerated growth candidates and have identified a possible gem. This pick is Precipio, Inc. (PRPO).

This small cap company is in the business of providing cancer diagnostic products and services to the oncology market. Precipio is expanding the potential of its industry disrupting, innovative product kit, ICE-COLD PCR™ (ICP). From a recent press release, “Precipio’s ICP kit, our mutation enrichment technology for liquid biopsies, leads to better cancer outcomes due to the ability to cost effectively test and monitor patients using a simple blood draw instead of an invasive tissue sample.”

As of March 30th, the last few press releases have eluded to enormous revenue potential if developed PRPO tech is well-received by customers and the liquid biopsy community. The financial situation of Precipio may still be a bit hazy as they’ve completed the reverse merger with Transgenomic, assumed the litigations, and utilized a dilutive method for acquiring cash.  My concern is the company’s current burn rate may warrant another capital raise. How they go about raising this capital, if necessary, will be a key detail that potential shareholders should be taking into account.

What to expect ahead: The month of June looks to be the time when things should become interesting for the company. The company’s cytogenetics media IV Cell will be due for some external validation results from Penn state, which if good, should provide concrete ammunition for a potential out-licensing deal with a global leader in the reagents market. In the lead up to these anticipated events and the research I have compiled so far, I have a position in PRPO and expect a considerable return on investment given the risk.Time will tell!