{"id":1182009,"date":"2020-05-03T15:39:45","date_gmt":"2020-05-03T20:39:45","guid":{"rendered":"https:\/\/oilandgas-investments.com\/?p=32500"},"modified":"2020-05-03T15:39:45","modified_gmt":"2020-05-03T20:39:45","slug":"how-we-scored-the-first-10-bagger-of-2020","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1182009","title":{"rendered":"How We Scored the First 10-Bagger of 2020"},"content":{"rendered":"

I had my first 10-bagger at Investing Whisperer this week with Capricor Therapeutics (CAPR \u2013 NASDAQ).<\/strong><\/p>\n

I wrote up Capricor for subscribers on March 18th<\/sup> when the stock was trading at $1.
Fast forward to April 29\u2014the stock got up to as high as $11!<\/strong>  <\/p>\n

A 10-bagger in a little over a month.\u00a0 Almost all of that gain came in one day, when it soared from $2.50 \u2013 $11 on the back of some positive COVID data for its lead drug, CAP-1002.<\/p>\n

But that was only one of the reasons I bought the stock\u2014and actually, it was the least important to me.  I considered its COVID optionality as a bit of a long shot.<\/p>\n

I bought the stock because<\/p>\n

    \n
  1. it was trading at or below cash value,<\/li>\n
  2. there was only 6 million shares out<\/li>\n
  3. some key technical data is coming out this summer<\/li>\n
  4. another company in its space, Sarepta (SRPT-NASD) was a 10 bagger when its data in this same space was positive.<\/li>\n<\/ol>\n

    That\u2019s the kind of stock I\u2019m looking for \u2014 companies with big upsides that have little of that upside priced in.  <\/p>\n

    I want a big upside and<\/em> catalysts.<\/p>\n

    That is EXACTLY what I found with Capricor.  There was not just one but four potential catalysts for the stock.<\/p>\n

    One of those catalysts hit and the stock moved significantly. <\/p>\n

    While not every stock is going to \u201cwork\u201d, those that do can be HUGE winners \u2013 just like Capricor.<\/p>\n

    My next junior biotech pick is coming out in days\u2014<\/em>and it\u2019s very similar set-up, but better. 
    This stock also has<\/p>\n

      \n
    1. Less than 10 million shares out,<\/li>\n
    2. But has the added benefit of $20 million in the treasury, and<\/li>\n
    3. It\u2019s most important factor\u2026its technology is already producing revenue!  IT WORKS.  It\u2019s commercial<\/strong>!<\/li>\n
    4. It can potentially be used as a platform technology to treat different kinds of cancers<\/li>\n<\/ol>\n

      This new biotech has the only effective treatment for a devastating illness that gives patients a very short life span.<\/p>\n

      It is the best good news<\/em> story I see in junior biotech\u2014and it\u2019s cashed up, has a tight share float (giving it
      explosive share price potential!), and is already commercial. 
       <\/p>\n

      DON\u2019T MISS OUR NEXT PICK\u2014TO GET IT AS SOON IT COMES OUT, CLICK HERE TO GET A SPECIAL ANNUAL PRICE OF ONLY $900.<\/a><\/p>\n

       Or you can sign up for our regular quarterly membership of US$249.<\/a> <\/p>\n

      HOW CAPRICOR PLAYED OUT<\/strong><\/p>\n

      When I bought Capricor in March the Market had essentially washed its hands of the company.<\/p>\n

      The market capitalization of the stock was actually less than the cash it held.<\/em><\/p>\n

      Now, microcap biotech stocks can trade at negative enterprise values.  <\/p>\n

      They do not generate revenue, which means they will eat through their cash over time.  At times the market will anticipate this.<\/p>\n

      But usually the companies that trade below cash have already seen a failed trial and have poor prospects.<\/p>\n

      But Capricor is not an early, pre-clinical stage company.  They are proving up another treatment for Duchenne Muscular Dystrophy, or DMD (think Jerry Lewis Telethon!)<\/p>\n

      Their drug target for this, CAP-1002, has already received orphan drug designation.  Phase 1 results were released in late 2017 showed a good safety profile and efficacy.<\/p>\n

      Capricor gave us 6-month results on the Phase 2 trial last year.  The stock briefly popped on those results but subsequently gave up those gains, and the Market is now awaiting 12-month results.<\/p>\n

      The comps on Capricor suggested a big disconnect in valuation.  One larger name that has had some success in the DMD space is Sarepta Therapeutics (SRPT \u2013 NASDAQ).<\/strong><\/p>\n

      As we pointed out in our alert, there was a big disconnect between how the market valued Capricor and how it had valued Sarepta when it was at a similar stage of development:<\/p>\n

      Consider that in 2016, when Sarepta Therapeutics was in Phase IIB trials for EXONDYS 51 (also targeting DMD), the stock fluctuated between a capitalization of $600 million to $900 million \u2013 and was even well over $1 billion at various times.  After subtracting Sarepta\u2019s cash balance at the time of ~$400 million, that still leaves a valuation in the hundreds of millions.<\/p>\n

      Capricor, on the other hand, had a ZERO Enterprise Value.  The optionality is HUGE here.  Zero to $400 million or more on a stock with only 6 million shares out then (they now have about 10 or 11 million).<\/p>\n

      But the story got even better!!<\/strong>  You see, CAP-1002 had received a rare pediatric disease designation (RPDD). <\/p>\n

      RPDD is a designation achieved after a company shows positive clinical data in a rare disease.<\/p>\n

      If CAP-1002 becomes approved for DMD, the RPDD grants vouchers (called a rare pediatric vouchers) to Capricor.
        
      These vouchers are unique and valuable.<\/strong>  They can be redeemed to receive a priority review for subsequent products.<\/p>\n

      What is more \u2013 the vouchers can be sold to other companies. <\/p>\n

      As we pointed out in our recommendation:<\/p>\n

      Sarepta sold one of their vouchers for $125 million in 2017, and a second for $111 million a few weeks ago.<\/p>\n

      The potential for a voucher award was (and is) another huge catalyst for the stock.<\/p>\n

      Finally, we recognized the COVID-19 angle.  As we wrote in our list of catalysts back in March:<\/p>\n

      Then just yesterday they announce a COVID19 angle to their pre-clinical product, with a (seemingly) highly qualified person to run it and they say they are going after gov\u2019t grants like crazy to help fund it.<\/p>\n

      The COVID-19 trials turned out to be the biggest catalyst of all \u2013 at least in the short term.<\/p>\n

      On April 3rd<\/sup> Capricor announced that they had initiated their compassionate use program for severe COVID-19 patients.   This would be using their CAP-1002 cell therapy.<\/p>\n

      Then on April 29, Capricor reported data on that program, announcing a 100 percent survival rate in 6 patients tested after a 1-month course of treatment.  Four of the six patients had been discharged.<\/p>\n

      I Follow My Nose<\/strong><\/p>\n

      I\u2019m not strictly a biotech investor.\u00a0 We do not limit ourselves to a single sector.\u00a0 Instead, I am opportunistic when I see mispricing in whatever sector it may occur.<\/p>\n

      I follow my nose.<\/p>\n

      With Capricor I hit the jackpot.\u00a0 I\u2019ve sold enough stock to be riding for free now, and hopefully the DMD data comes in strong and the stock turns into a 100-bagger for me.<\/p>\n

      MY NEXT STOCK PICK<\/strong><\/p>\n

      I\u2019m excited about my next biotech junior stock pick.\u00a0 It is already extending the life-spans of patients\u2014giving them high quality years with their loved ones.\u00a0 As this technology gets more and more approvals by countries around the world, I think the stock has incredible potential.<\/p>\n

      I expect new sell side research coverage, country approvals and further technical data to be great catalysts for the stock in the future.<\/p>\n

      Get this new pick delivered to your inbox the day it comes out for A SPECIAL ANNUAL PRICE OF ONLY $900.<\/a><\/p>\n

      But if you want this special annual pricing, you must order by end of day Monday.<\/p>\n

      This one-time annual price of US$900 ends at 11:59 pm Pacific time Monday!<\/p>\n

       Or you can sign up for our regular quarterly membership of US$249.<\/a> <\/p>\n

      Keith <\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

      I had my first 10-bagger at Investing Whisperer this week with Capricor Therapeutics (CAPR – NASDAQ). I wrote up Capricor for subscribers on March 18th when the stock was trading at $1.Fast forward to April 29—the stock got up to as high as $11!   A 10-bagger in a little over a month.  Almost all of that gain came […]<\/p>\n","protected":false},"author":117,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[529],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1182009"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/117"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1182009"}],"version-history":[{"count":3,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1182009\/revisions"}],"predecessor-version":[{"id":1186576,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1182009\/revisions\/1186576"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1182009"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1182009"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1182009"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}