DISCLAIMER: I am long shares of SBOTF and may add to the position at any time.
”Even blind squirrels find an acorn every now and then”
OK, I know .. there is already plenty of discussion re Stellar Biotechnologies (SBOTF) on the site. Since Travis posted the tease from Nick Hodge in early July, the stock is up a hair over 100% (my Special Situation account sends many thanks for that one!). The reason I’m opening this thread is because the majority of comments from those of us interested or already invested in SBOTF are being posted under another wonderful – yet mostly unrelated – thread by Doc Gumshoe that talks about Alzheimers and possible causes/treatments/cures. Great stuff, but not fully germane to the topic of SBOTF. So, tho seperate the two discussions, I thought I’d try this so we can focus on each of the topics independantly.
That said, here’s some commentary about SBOTF that I have gleaned from the original tease, tracking the price action since July, reading member comments on this site, and studying anything and everything I can find about the Company and it’s product, Giant Keyhole Limpet Hemogobulin, a/k/a KLH.
First, a little peeve I’ve developed; the actual name of this animal that is the central focus of the business. I’ve noticed a trend of sorts by readers to refer to the Limpet as a ”snail”, ”escargot”, or something along those lines. While some may be using this as a light-hearted way of referring to the animal, it is not any of those. Please, use the proper name – as silly as it might sound. New readers could easily dismiss the entire idea and be misled otherwise. No disrespect meant to any who have done this, but I think it’s important we stay on track.
Now, some factoids for you.
If you haven’t done your due dilligence yet, the place to start is right here on this page. In the upper right you’ll see a box that says ”Teaser Tracking.” Click on that. The page that comes up is a list of the teases which Travis has posted over the past many months. Second from the top is the one re SBOTF. Some good tidbits of info right there. But what you want to do is look all the way over to the right and click on the link to the original tease posting. Open that and you’ll get the full story that Travis wrote when he first uncovered this tease (produced by Nick Hodge) and is a solid foundation of info about the company. Read it – two or three times to get an understanding of what SBOTF is all about.
Next, if you can find it, try and get a post that has the original video that Hodge did to tease the company with. In it, he (Hodge) interviews a couple of the company’s top executives and takes the cameras outside the room totalk with another employee about the ”farming” process that SBOTF has spent years and millions developing and patenting. You’ll get a pretty good visual inspection of the plant itself, the ”grow tanks”, and the Limpet. Good stuff. By the end you’ll have a fair overview of the company and what it does. FYI, the video tease runs about 40 minutes. It’s the first 25 minutes or so that will interest you. The remainder is what all teases consist of, overblown and repetitive pleas to get you to subscribe to the newsletter service that the promoter has to offer. Save yourself time and money by skipping that stuff.
A few takeaways from the video and additional research:
SBOTF has been around since the late 1990’s, working on how to extract the blood from the Limpet without killing them (they have done that and gotten patents on the process) and how to raise them in captivity in order to ensure a continuious supply of the animals to work with. This ”farming” process has, for the most part, been perfected and SBOTF can now raise them from fertilization of sperm and egg to maturity. They have a lifespan of some 30 years, and coupled with the patent-protected process they developed for extracting the blood without killing the Limpet, the company can now say with assurance that they can provide the Big Pharma with all the KLH they need to conduct clinical trials and produce the drugs they develop once FDA approval is granted. And – this is a big ”and” – they are the ONLY company in existence that can do this at the present time. The many patents they hold may ensure that to be the case for years to come.
Did I mention that KLH cannot be synthesized? So far nobody has been able to do that, so the supply of KLH from SBOTF seems to remain the only game in town.
Stellar Bio has yet to turn a profit. Sales and not much to write home about. That is mainly due to the small supply available and that SBOTF has focused on R&D in the past moreso than actual KLH production. That’s my best guess – I can’t verify that but seems to be the case. It is changing, however. The R&D is still in full swing, but the ability to produce and sell KLH is starting to ramp up as witnessed by increasing sales volume. It’ll take time but those increasing sales are coming.
In the wild (ocean floor), the Giant Keyhole Limpet has never been found ANYWHERE in the world other than in the small colony (estimated to be about 100,000 animals) which is just offshore from the Stellar Bio plant in Ventura County, CA. The enviromental community has been getting more and more concerned about the harvesting of the Limpets from this colony since there apparently aren’t any more around. Whisper talk about possible extinction have begun to surface, although no official governmental action regarding a ”protected specise” has yet been issued. This is why the farming of the animals has been crucial and why Stellar has such a leg up on any possible competition. If the Tree Huggers get hold of that idea, the ability to harvest the colony could – and probably would – be severely impacted.
Recent price and volume action has been fast and furious. As more and more people are becoming aware of the company by means of Hodges’ tease and thing such as this discussion, volume has had days that were near three times the average six months ago (175K shares average vs. some days now running around 500K). And most of this is upside volume indicating increasing demand for shares of a small float. This of course leads to highr prices as we are witnessing as I write.
For now, the gravy train is tearing down the track. The question is, when will demand for shares be curtailed as investor thirst for a bite of Limpet pie become satisfied? When will Nick Hodge back off this promotion, letting the press subside and therefore lessening investor awareness (the stock is not covered by any analyst, anywhere, that I can find, nor is it held by any mutual fund or investment management company). If and when this interest backs off, what effect will that have on the stock price? Trees don’t grow to the sky … or do they?
I can’t answer those questions. Just like you, I can only hold ’um and not fold ’um – yet. That day may come, and that is why I suggest anyone long the stock keep a DAILY eye on it. I’m making no prediction whatsoever about where the price will go over the next several weeks or months. In the interest of full disclosure, I have already taken some money off the table just to partially protect the quick profits I made since purchase. I sold about 30% of my initial position when that part became valued around 50% of my original investment. What remains is valued today right at the same $ amount I first put in. The amouunt I pulled out gives me full protection of some 50% of my original investment. Would I be better off today if I hadn’t done that? Yes. I would, because the price continues to rise. Will I be better of for having made thaat sale if the price stumbles and falls in the near future? Again, yes, I will – if the price falls. Some wise man once said ”you can’t go broke if you take profits” and I believe in that. Me, I don’t care for the idea of going broke, so I’m perfectly happy with this concept. No regrets about putting actual money in the bank, so to speak.
Comments? Concerns? Insights? Let the fun began!
Sincerely,
Your Resident Blind Squirrel
Jim Skelton
This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.
Per CEO one gram of KLH currently sells for $5,000. Actually, I did the math, he said 50 Keyhole Limpets can safely be harvested twice a year for 20 grams of medical grade protein each time which nets the company $100,000. This is from a Sept 3, 2013 interview of Steve Oakes by Steve Curwood of the environmental news program “Living on Earth.” Stellar VP Norm Chow is also quoted regarding medical uses for KLH, especially in regard to developing vaccines for cancers. Hope this helps people out. David
CEO Oakes also states re. KLH “without it, a lot of vaccines won’t work.”
Here’s a link to the article: http://www.pri.org/stories/science/california-biomedical-research-facility-harnesses-power-of-ocean-creature-14889.html
Thank you for clarifying Sean F. I didn’t think you hijacked. I knew it was a coincidence. Welcome to SBOTF. It should be fun.
Sean R.
Here we go-put on your seat belts folks! Some good publicity from yesterday’s conference and we’re off again to all time highs soon.
You bet. Some of that is priced in but we should see a nice bump.
Anybody going to watch the webcast?
Mr. Skelton, are you still out there ? Have missed reading your posts lately.
Exciting day…
Addendum: of course that was yesterday.
Jim has a nice summary of the meeting in a new blog post: search on this site “Aftermath: Stellar Biotech Conference” and you’ll see his summary and my comment and perhaps some others.
Up about 4% yesterday and now about 5% today thus far–looks like the Private Placement diution jitters are ending and the chart (after 8 days or so of roller coaster volatility) is trending nicely and consistently upwards again after the big dive the morning of the P P–phew! It looks like the conference has provided a nice pop and is adding new investors.
Great write up Mr. Skelton. Great things in store for this company and its shareholders.
Somewhere in all these posts I began to disclose my actual positions and actions regarding SBOTF. Earlier today I said I was watching the price closely and might sell. Well, I put in a limit order to sell all at $1.45 or better. day limit, AON. It went off about 3:45 at $1.4575. So I am now out entirely. Tomorrow is another day and I’ll be tracking, looking for a new entry point. It’s encouraging that the $1.45 I had mentioned as a resistance level was broken and held through the close. If it tracks up from there all day tomorrow and can close convincingly above that level – say at $1.50 or so – we might be on track for $1.75 in a couple weeks.
I had a GTC in to buy at $1.25 but don’t think that, barring unexpected bad news, we’ll see that again. I’m thinking more like $1.35 as a very good re-entry point, $1.40 would be OK. May turn out that I’ll be back in at $1.60, though, and I won’t cry about it. But I WILL be back in sooner or later, that I guarantee.
I did some quick math and found that, in the space of 2 months, I’m up 53.2%. All of the gain is now REALIZED gain, mine to keep unless I plow that part back in – which I probably won’t. Other fish to fry. I’ll Just began again with the original amount and go from there.
I also calculated what advantage, if any, I had garnered from the trading in and out over the past 4 weeks. Turns out I have $263 more than if I had just bought and held from day one. Tiny advantage, but still an advantage. I’ll take it. Can’t put a dollar sign on the fun of the chase .. :0)
A thought to ponder ..
I was at the grocery about an hour ago and was just watching all the people stopping in for milk and bread before going home from work. A mixed bag of folks, some neat and clean in dress wear, some sweaty and dirty from a hard days labor in the sun. It occurred to me how very lucky I am. I didn’t sweat a drop today, nor have a boss pressure me to produce more. Yet I made, just by pushing these keys, the equivilent of a full 8 hour workday for someone making $26 an hour. Think about that. And thank God for the opportunity.
Let’s see what tomorrow brings ..
The Blind Squirrel
Jim Skelton
I don’t think you timed it right Jim as the stock is currently on a steady upward trend with no signs of a significant dip. I’d get back in right now, but then again who knows? I do think that you are wise to take some profits though and just put back in the original principal. That is good advice to anyone to hedge against losses. I’ve done the same and plan to maintain Stellar at about 12% of my portfolio. When it gets significantly above this I will take some profits. That is good advice to anyone–find what you are comfortable with as far as a percentage of your investments–whether that is 2% of your portfolio or 25% of your portfolio and when the stock grows significantly above that position–lock in your profits by selling off what has gone above your decided percentage, don’t get too greedy because if we all happen to be wrong you could lose it all. Hedge your bets.
All, I find it confusing to have two different pages for Stellar on this site. Can we officially “close” the “Aftermath” page? Thoughts?
Also, can someone get across to Stock Gumshoe that if they would reverse the sequence of postings so that the newest posts are at the top of the page, it would STILL QUALIFY as being in chronological order !
And of course I am very pleased with the bump in stock price.
Jana
Jana:
The “Aftermath” post I wrote was meant to be a one-off comment, not a thread to develop. Of course, people can add their own observations if they want – people often hear or see different things when observing the same event. Sorry if it confuses the issue for you though.
As for the order of presentation of comments, last-first or first-last, argument can be made for either. For a new reader, the first to last is best. Gives them opportunity to read from the start of a discussion down to the most recent which in turn lends perspective. But for those who have been following a thread and have already read the previous posts, seeing the most recent come first makes more sense and the reading easier.
Even though I, personally, would prefer to see the most recent post appear first (as you also do), I think the first to last format is best overall so that everyone, no matter when they join the discussion, can gain an understanding.
What I wish people would stop doing is interjecting an unrelated subject into a blog. That can send an entire discussion spinning off down a totally unrelated road to no ones benefit. If a reader wants to make comment that is slightly linked to the topic at hand, but isn’t really germane to the subject, they should open a new comment blog and let it stand on its own.
And yep, my sale yesterday at $1.45 looks a bit premature with SBOTF having traded as far as ~$1.52 today, now back to !$1.48 as we near the close. As I tried to express yesterday, things like that happen every day – doesn’t bother me at all. My goal was to secure profit and that was accomplished. I’ll buy back in at some price soon, either above or below the $1.45. This horse still has a lot of leg and I’ll resume a role as jockey in due course, riding it to the finish line. Whatever that may be.
The Blind Squirrel
Jim Skelton
Back to all time high range today–looks like the big dip and the subsequent roller coaster for two weeks was just the “pause which refreshes” after the Private placement watered down the shares. I’m amazed that the recovery of the price has already happened–we definitely have a “tiger by the tail.” Many others are seeing superb upsides to this tiny biotech despite the inherent risks of a microcap which depends on one tiny sea creature. Tell your friends and relatives the good news : ). May Stellar continue to progress in bringing health and wealth to many.
Thought I’d wrap up my week with some honest revelations re my sale of SBOTF last Wednesday in hopes of picking it back up a dime or so lower. Well, Mr. Market had other plans that I wasn’t privy to and the trade didn’t work out as hoped. As I mentioned earlier, I sold just a tad shy of $1.46. And as David just posted, this week has seen Stellar shares on an unending rip to the upside. Last trade I see (it’s now 3:50 PM) crossed at $1.53. Are you aware that last week alone SBOTF started at $1.30 and is now $1.53? Wow!
So I sucked it up and repurchased just now at $1.53. Cost me $0.07 a share for that little adventure. There goes my (anticipated) purchase of a new rife I’ve been lusting for the past year, the Ruger All American bolt action in .308 Win cal. Sweet shooter. Maybe next month.
BTW, I’m long Strum, Ruger (RGR) – love it!
I’m not whining .. as Kenny Rogers told us many years ago, “You got to know when to hold ‘um, know when to fold ‘um, know when to walk away, know when to run.” I walked away all right .. it was the knowing when to do so I got wrong.
But I’m back in the game again with the same # of shares I had – and I’ll be doubling down on those when the price hits either $1.60 or $1.40, whichever comes first. I’ll let Mr. Market make that decision for me. He does what he wants anyway, so who am I to argue? And then I plan to let this position sit and cook for quite awhile with no further action on my part. Gonna go looking for the next “brass ring” for my portfolio.
Maybe Travis will drop that new gem into our laps next week with his insight from the Value Conference. BTW, only us Irregulars will see those posts. I’ve asked before in some posts why anyone would let just $49.00 stop them from getting a FULL YEAR of this great info? Say what? You’re not an Irregular member yet? Sign up – NOW :-)! Travis is gonna have to start payin’ me for these promos ..
Have a great weekend out there .
The Blind Squirrel
Jim Skelton
IMPORTANT _ IMPORTANT _ IMPORTANT
STOP THE PRESSES! This is, I believe, BIG news I discovered no more than 15 minutes after the above post. You’re gonna want to read this carefully.
This Morning (Friday) as I watched SBOTF trading I checked to see if there was any news releases. That little blurb I heard during the presentation last Monday about “Our balance sheet is going to look a lot better by Friday” kept haunting me. But there was no stories posted on the research site I use as a primary go-to source.
Then, as I cleaned up my desk, I looked one more time. This time there was a post – a news story release. One which has led me on a 2 hour chase that is giving me goose bumps as it relates to Stellar and the future potential. Follow me here ..
The story I saw was from a source called “The Midnight Trader” and entitled “Stellar Biotechnologies Raises US $10 Million In Initial Closing of Private Placement. Shares up 3.7%.
Oddly, the story is dated Sept. 10, 2013 – not today, Sept. 13. Don’t know why or where it has been for those 3 days. We knew this funding was coming – it’s the placement that got so many folks so riled up a few weeks back. But we didn’t know where the funding was coming from, or from whom. There was subtle mention of some “reclusive billionaire” made but no names, no firms.
Well now we know, and it is EXCITING!
The third paragraph of this short announcement reads “The non-brokered portion includes a US $5,000,000 investment by Amaran Biotechnology, Inc., a privately-held Taiwan biotech Company and biopharmaceuticals contract manufacturer.”
There is one piece of the puzzle – Amaran Biotechnology out of Taiwan. So, who are they?
A quick search in Google with the company name turned up many stories. One is from the China Post and entitled “Taiwanese retail billionaire Yin ventures into botox investment.” You MUST go there (use Google just as I did) after finishing this read. More detail than I can provide is present as well as additional stories.
Seems that one Mr. Samuel Yin, the sixth richest man in Taiwan, is our “reclusive billionaire” and has very, very dep pockets indeed. And is very deeply involved in all things Biotech. Which now includes Stellar Biotechnologies.
Yin is Chairman of Ruentex Financial Group. This story details his new venture in breaking ground on Taiwans first botox research and development factory in Zhubei City. This is apparently a joint venture with another Taiwanese biotech scientist and well-helled individual, Michael Chang. Chang is a board member of Yins Amaran Biotech and his wife, Tessie Che, is nominal chairman of the company.
Confused yet. I was too until I read the story and others about 4 times and got everybody and everything sorted out. Here’s the takeaway for us in Stellar Biotech.
We are now partnered with a truly major investor, company owner, and Biotech scientist in Mr. Yin. He obviously believes a great deal in the future of Stellar, both in terms of the business they are in and the future value of the company. He can provide investment capital from his own pocket (no shareholder approval needed) to support Stellar into the future. He may – and I’m guessing here – have also needed to get this alliance in place to provide himself a reliable source of KLH in the botox R&D programs he will be developing at Amaran Biotech. He may someday want to simply make a buyout offer for Stellar in its entirety. And so on it goes ..
For you and I, now we know why management at Stellar Biotech handled this offering as they did. I said at that time we had to trust them to be doing something that would be to our long-term benefit even though it might cause short-term pain (dilution). I think this more than qualifies for that concept.
As for me, I’m excited at this new connection. I said previously that I would wait for Mr. Market to tell me when to double down at either $1.40 or $1.60. I retract that statement. Monday, at whatever the ask is, I’m acting. May even pass the “double” and go all in at triple my original commitment. You do what is right and appropriate for your situation – I am not recommending anyone follow my lead.
Now go read these stories for yourself, especially the ones from the China Post.
I really gotta quit this for now. But I AM PUMPED!!
The Blind Squirrel
Jim Skelton
Another Billionaire bought 1 million shares: Stellar Biotechnologies investor buys one million units 2013-09-10 19:14 ET – News Release Mr. Ernesto Echavarria, an investor, reports ERNESTO ECHAVARRIA ACQUIRED SHARES IN STELLAR BIOTECHNOLOGIES, INC. Ernesto Echavarria of 1225 Blvd. Pedro Ma Anaya, Culiacan Sinaloa, Mexico, 80040…
Jim and I are thousandaires! LOL
This is exciting stuff. It further solidifies our positions, so hold on folks!
Can anyone say all time high? The Private Placement raised cash quickly and from at least two billionaire “insiders.” This has given the market even more confidence in Stellar’s future and the stock price is off to the races again.
A run up on the good news but don’t let the high side fool you (or me). I agree that this is the start of something good (with the big buck investors joining in). I am going in for a few k more shares. I will average up somewhat but I believe the trend will be favorable for the next few days until the hype wears off then we will see a settling. (personally I sure hope not and this goes up like crazy 🙂 ). After the settling, a nice steady climb is favorable rather than the nasty saw blade effect that keeps us all on the edge of our seat (watching the graphs jump up and down).
My jaw is dropping daily at the increase in price! I think the stock is worth a lot more, of course. But I also wonder how long all of these good feelings will last until the choppy waters begin again. Anyone taking any profits? I’m up 40% and nervous.