Feb 2019 Special Report with Gaming & BioPharma
No one has ever said small cap investing was a walk in the park.
Unbelievably, an astonishing nine out of every 10 investors fail because:
- Many don’t have good training, or guidance
- They’re not aware of risk, thinking the stock market is a “get rich” scheme
- They don’t think long-term. They want instant gratification.
- They blindly follow the crowd, becoming one of the sheep
- They fail to trade without emotion.
- They fail to trade with a property strategy or even diversify.
- They fail to learn from their mistakes.
In addition, one of the worst things many investors – especially new ones do – is they get caught up in what the press hounds would have them believe.
But that’s a great way to lose money.
Everyone in conventional financial media shouts about their favorite stock picks.
But we believe that if you really want to become a better investor then you need to be looking at where the smart money is heading. You need to understand what is truly driving the markets and how you can take advantage of these moves as – and before – they hit the mainstream.
That’s how the long-term wealth can be found.
Here are three small cap stocks we believe have the most potential in January 2019.
Small Cap Opportunity No. 1 — Glu Mobile (GLUU)
Glu Mobile develops, publishes, and markets a portfolio of free-to-play mobile games for the users of smartphones and tablet devices. The company publishes titles in four genres, including home décor, sports and action, fashion and celebrity, and time management. It creates games based on its own brands, including Contract Killer, Cooking Dash, Covet Fashion, Deer Hunter, Design Home, and QuizUp. The company also creates games based on third-party licensed brands, such as Restaurant Dash with Gordon Ramsay and Kim Kardashian; and Hollywood, MLB Tap Sports Baseball, and Racing Rivals. It markets, sells, and distributes its games primarily through direct-to-consumer digital storefronts worldwide.
The game developer behind Kim Kardashian: Hollywood, and Deer Hunter has seen its stock rocket nearly 90% higher this year. Impressive bookings, long shelf lives for its biggest hits and guidance that’s increased time and time again have helped. Revenue is up 31% in the first three quarters of 2018. That’s on top of 43% growth in 2017.
Not only do we like what’s under the hood with GLUU, we like it technically, too. After exploding from a low of nearly $5.50 in October, it hit a high of $8.42 before pulling back with the broader market. Now that it has caught strong support around $7.85, we believe the bottom is now firmly in place. We also believe it could return back to $8.42 before long.
Small Cap Opportunity No. 2 — Viking Therapeutics Inc. (NASDAQ:VKTX)
VKTX is a clinical-stage biopharmaceutical company that focuses on the development of novel therapies for metabolic and endocrine disorders. Its lead clinical program, VK5211, is an orally available, non-steroidal selective androgen receptor modulator in Phase II development for the treatment of patients recovering from non-elective hip fracture surgery; in Phase I clinical trials for improving lean body mass; and in pre-clinical trial for improving bone mineral density, bone mineral content, bone strength, and other measures. The company is also developing VK2809, an orally available, tissue and receptor-subtype selective agonist of the thyroid hormone receptor beta, which is in a Phase II clinical trial for the treatment of patients with hypercholesterolemia and fatty liver disease; and in a Phase I clinical trial to treat patients who suffer from glycogen storage disease type Ia. In addition, it is developing VK0214 for X-linked adrenoleukodystrophy, which is in pre-clinical stage.
After pulling back from a high of $24, Viking has been consolidating just above $7 a share. It’s just now beginning to attract further interest after the company updated data for its non-alcoholic steatohepatitis (NASH) drug candidate, VK2809, at the annual meeting of the American Association for the Study of Liver Diseases.
While many of the results were already known from September 2018, the company did unveil new analysis that showed that 67% of VK2809-treated patients exhibited a 50% reduction in liver fat content at the 12-week mark. The company also noted there were no serious adverse effects observed in patients. Should things move along well from here, the treatment could become a contended in the treatment of NASH. If it can continue to prove itself against industry giants like Intercept Pharmaceuticals, it’s a bargain at current prices.
Small Cap Opportunity No. 3 —Fate Therapeutics (FATE)
Fate Therapeutics is a clinical-stage biopharmaceutical company that develops programmed cellular immunotherapies for cancer and immune disorders worldwide. Its immuno-oncology product candidates include FATE-NK100, a natural killer (NK) cell cancer immunotherapy that consists of adaptive memory NK cells; engineered hnCD16 induced pluripotent stem cells (iPSC)-derived natural killer cell therapy candidates for hematologic/solid tumors; and engineered chimeric antigen receptor iPSC-derived T cell therapy product candidates for hematologic/solid tumors.
We like FATE here following the pullback thanks to two key announcements on its FATE-NK100 treatment for its natural killer cell cancer immunotherapy, and news that the FDA just accepted its investigational new drug (IND) application for FT500 — a potential natural killer cell immunotherapy.
“The safety and clinical benefit observed with a single infusion of FATE-NK100 as a monotherapy in heavily pre-treated cancer patients, including in refractory AML patients that have high leukemic blast burden in the marrow and in advanced solid tumor patients with progressive disease, are encouraging,” said Sarah Cooley, M.D., Associate Professor of Medicine, Division of Hematology, Oncology and Transplantation at the University of Minnesota and the lead investigator of the VOYAGE study.
As things progress for the stock, we strongly believe it could rally to $25, near-term.
Again, we believe that if you really want to become a better investor then you need to be looking at where the smart money is heading. In fact, a good amount of smart money appears to be heading back into the three names mentioned above.
This is where long-term wealth can be found.
This manual is for informational and entertainment purposes only. The author is not an investment adviser, financial adviser, or broker, and the material contained herein is not intended as investment advice. If you wish to obtain personalized investment advice, you should consult with a Certified Financial Planner (CFP). All statements made in this manual are based on the author’s own opinion. Neither the author or the publisher warrants or assume any responsibility for the accuracy of the statements or information contained in this manual, and specifically disclaims the accuracy of any data, including stock prices and stock performance histories. No mention of a particular security or instrument herein constitutes a recommendation to buy or sell that or any security or instrument, nor does it mean that any particular security, instrument, portfolio of securities, transaction or investment strategy is suitable for any specific individual. Neither the author or the publisher, can assess, verify, or guarantee the accuracy, adequacy, or completeness of any information, the suitability or profitability of any particular investment or methodology, or the potential value of any investment or informational source. READERS BEAR THE SOLE RESPONSIBILITY FOR THEIR OWN INVESTMENT DECISIONS. NEITHER THE AUTHOR OR THE PUBLISHER IS RESPONSIBLE FOR ANY LOSSES DUE TO INVESTMENT DECISIONS MADE BASED ON INFORMATION PROVIDED HEREIN. At the time of writing, neither the author or the publisher has a position in any of the stocks mentioned in this manual.