I'm not a licensed financial advisor, nor am I a licensed Registered Investment Advisor (RIA). I hold no fancy three letter combination after my name (as of yet), and my own investing/trading experience (2-3 years) is probably dwarfed by your own. My name is Matthew Fox and I'm simply an avid stock market observer/investor, crazed technical analyst (I LOVE CHARTS!), and serial entrepreneur (if one of em' will just take off already!).
I will have one fancy three letter combination after my name, MBA, from a not top tier Business School on June 26th, 2014, and I am a Chartered Market Technician (CMT) hopeful and plan to earn that designation in the future, though it's a 1.5 year testing process and requires three years of relevant work experience (of which I have zero financial work related experience! I've been cooking at fine dining establishments for nearly 7 years), so it will be a while until I earn that designation.
I'm laying this all out for you before I explain my investments that literally get me GIDDY and EXCITED for just being apart of, because I want you to take what I have to say with a grain of salt (and then some). You can read much more higher quality/intellectual commentary on stocks/market from a lot more experienced veterans/bloggers in the industry that will probably make/save you a lot more money than The Wall Street Fox.
If you've made it this far, here is why I'M SHOUTING FROM THE HILLTOPS: Go Long (AKA invest, AKA more than a year time frame!) in TransEnterix (TRXC), Neovasc (NVCIF), American Apparel (APP), and more.
Did you ever wish you could jump in a time machine, go back to the early 2000's and put all of your money into Intuitive Surgical (ISRG)? ISRG went from under $10 to $600+ in a decade. Well, now you can...sort of! TransEnterix is developing the next generation surgical robot that blows Intuitive Surgical's Da Vinci System out of the water. TransEnterix has superb management, a boatload of cash to fully develop and commercialize its product which is being released in 2015 and the company is targeting a massive market that has yet to be significantly penetrated.
TransEnterix is developing the SurgiBot. It's a surgical robot aimed towards laparscopic surgery. The surgeon enters the patients body through the belly button in ONE incision about the size of a quarter (25mm), and the flexibility of the device, and tactile feedback are what sets this device apart from Intuitive. Furthermore, TransEnterix's offering will cost 60% less than ISRG's Da Vinci System, at ~$500,000. The SurgiBot will also be creating recurring revenue from annual service contracts with customers and supplying the reusable instruments (~$1,200 per procedure). A more in-depth fundamental analysis of TRXC can be found here
Technically speaking, TRXC is extremely oversold, and MACD is turning bullish. There is a MASSIVE gap to be filled from $4 to $8, but a possible sell signal is in the midst of occurring, with the 50 day moving below the 200 day. The company priced its financing at $4.00 per share, and they exercised an over alotment option to sell more shares because of the intense instituional interest in the company. TransEnterix completed a one week road show last month, and has since received 5 buy upgrades from 5 different analysts. This is a strong buy.
Neovasc has already saved lives with their two cardiovascular devices, the Tiara and the Reducer. This company is a hidden gem. They created a mitral valve device (first ever) that treats mitral regurgitation (a deadly disease that more than one million people suffer from), and it works! The recent in human uses have been stellar, with ZERO HICCUPS. The company recently hired a top clinical advisor who will walk the company through its FDA approval. The company seems to be in it for the long haul, at least to the point of getting the products passed FDA standards.
I can't stress this enough, this company has TWO cardiovascular devices THAT SAVE LIVES. Thorough testing of the Reducer has already taken place and the COSIRA trial had more than 100 people enrolled I believe. The Reducer is already CE Marked and approved in Europe. The company also has a profitable artificial tissue production division that is used for cardiovascular devices for companies like Medtronic and Edward LifeSciences. I smell a potential acquisition of Neovasc down the line from either Medtronic or Edward LifeSciences.
Here is the weekly on Neovasc. What a champ. It should continue to experience some sideways consolidation, but the bullish uptrend is intact. The company trades as NVCIF for American market participants, and it is on the verge of being uplisted to the NASDAQ. The company completed a $25 million offering with a single private investor/institution that in my view, begged for NVCIF to sell them shares, because Neovasc was not in need of any money at the time. The offering took place around the $6.00 mark. Let me repeat, Neovasc is a Canadian company that has two LIFE SAVING products that target millions of patients, and on top of that they have a profitable tissue producing division that is growing at a rapid rate and funding the development of the Reducer and the Tiara. I'm expecting $15+ for Neovasc down the line...unless they get bought out prematurely. The one concern is if Neovasc files for a shelf when they uplist to the NASDAQ. Dilution is limited thanks to their profitable tissue division, but it is not out of the question. Read my in depth fundamental analysis on Neovasc here
American Apparel (APP)
Currently i'm working on a piece for the website TraderPlanet entitled, "Distressed Investing Is The Best Investing," where I outline why investing in names that have been written off for dead can sometimes turn out to be the best investment you've ever made, and the criteria associated with the successful ones. American Apparel, to me, has the necessary criteria to survive AND thrive. Plug Power had met similar criteria, as did Nokia, Sprint, Clearwire and Castle Brands...just to name a few.
American Apparel has a strong and familiar brand, superior quality and the ability to tout that all of its products are made in the good ol' USA....something increasingly hard (and scarce) to say now a days. The vertical integration of APP makes this one a game changer. The company narrowly avoided bankruptcy. Activist investors stepping in signals a new direction of management and a form of guidance that should bode well for all shareholders involved. The main problems that drove American Apparel into the ground are now behind it (logistical problems with new innovative distribution center, immigration/worker problems, outspoken CEO who makes headlines not in a good way) and the only time you will be hearing of these company woes is when bashers show up and regurgitate old news after an excessive (but most likely warranted) run up in share price.
This chart is a beauty...doesn't get much worse (or better, depending on how you look at it) than this. The stock has plenty of room to run, with RSI in an uptrend and room before overbought territory. MACD is staying bullish and looks like it can run, and the stock is still battling to reclaim its 50 day....good sign. I have not conducted thorough fundamental analysis of APP, but Michael Bigger of www.thisisbigger.com has and I strongly suggest that you read his APP posts. Mr. Bigger owns more than 3 million shares of American Apparel.
Plug Power (PLUG), Erba Diagnostics (IDI, Castle Brands (ROX), and Tiger Media (IDI)
These are risky ones, especially with the Russell Small Cap taking a beating and technically breaking down hard, but the growth and business prospects of Plug, Erba, Castle and Tiger are stellar, and all three have recently sold off hard, creating attractive entry areas. Most of these companies have a connection to Billionaire Dr. Phillip Frost (if not familiar with who Frost is or his background, I highly recommend you do some googling right now!). Frost is invested in Neovasc (through Opko Health), TransEnterix (heavily invested, along with Dr. Jane Hsiao), Tiger Media (owns ~30%), Castle Brands, and Erba Diagnostics is an old subsidiary of his previous company, IVAX, though he has no position in Erba.
The fundamentals of these four companies are intact. Here is my thorough analysis on them.
Right near oversold, MACD about to turn bullish. Earnings this week.
MACD priming to move bullish. CEO needs to take communication 101 course but once he does (or if he fails and hires IR person), price should move up.
Look at the MACD! WOW! $1.50 PT from Barrington's research analyst.
MACD moving along with RSI.
All in all, there are some serious hidden gems out there with increasingly bullish fundamentals and a battered stock price. While the overall market may be in a bubble and whether or not that will pop in the imminent future, I will remain long these names. I'm long every single name mentioned in this post.
While this is no advice and in no way fits the needs of your investment strategy, this is just more of me making a mental note and writing about it, highlighting that I said this here at this point in time. Let's see how they all turn out a year or so from now. Remember, go long=don't worry about intraday movements, follow the company and watch the positive developments unfold. If you are squeamish about losses, set an appropriate stop loss and stick to it.