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Top Traders Advice
Futures
By Chris Vermeulen
The Moment If Truth for Gold, Silver,
Oil & SP500
May 5th, 2010
It has been an exciting couple weeks with the stock market
slowly forming its top before breaking down this week. I have
been warning everyone keep tightening your protective stops
and to keep new positions small because once prices start
to sell off they will most likely drop like a rock.
This week we have seen all the markets around the world breakdown
and this indicates that there could be some large waves of
selling in the near future. Traders and investors are very
bullish on both stocks and commodities and financial market
is designed to hurt the largest group of investors possible.Read
More
Equities
By Michael Markowski
Shares of Pure Play in the Online Investor Education
Industry Up 40% on Stock Market’s Biggest Down Day in
Months
May 5th, 2010
Yesterday (May 4, 2010), a day in which the Dow Jones Industrials
declined by over 200 points, the shares of Global Investor
Services, Inc., (OTCBB:GISV) gained by over 40% and closed
at $.05.
Global, in 2009 underwent a significant surgery that it was
lucky to survive. The company scrapped its high overhead and
low gross profit margin brick and mortar business model and
replaced with what I believe to be is a state of the art highly
profitable online revenue and fulfillment model. For more
information on this transformation I suggest a review of my
report “Deal with Canada’s Fastest growing Online
Broker Validates Emerging Company’s Business Model”
that was published on November 11, 2009. I also suggest a
review of my two articles “Betting the Odds” and
“Cyber Gains” in which I discussed the opportunity
that the investor education industry presents to investors.
Global’s financial
statements have shown vast improvements in its results over
its last two quarters:
•Actual gross profits increased even though revenue
fell by over 40% in each of the last two quarters.
•Annualized Cash Flow From Operations improved for
each of the last two quarters.
Both of the above are telltale signs of a successful transformation
by a company from a change in its business models or products.
When a company completely guts its existing business model
investors should expect a sharp decline in revenue with an
increase in gross profit margins. This is because the ramping
up of the sales of the new products and services are masked
by previous year earlier comparisons that were based on the
revenue from the previous business model or products. Investors
should not be disappointed as the most recent financial results
by Global Investor Services indicate that this transformation
is taking place.
Global’s new online business model is infinitely better
than its previous one because it is highly scalable and its
gross margins increase with each additional online customer
they acquire. The model is scalable because the capital expenditures
required for it to exponentially increase its revenue is insignificant.Read
More
Options
By Stan Moore
Further Update on BTIM's new deal. Market has problems
with Greece.
May 5th, 2010
Last week, I said that I intended to cover the macro picture
a bit in my next issue if events did not intervene. Specifically,
I wanted to tell you why I expect dramatic tumult in the stock
market to continue. Additionally, I planned to explain again
why transformational, disruptive technologies are the surest
way to exploit the confusion and avoid the consequences of
the ongoing stupidity at the heart of this mess.
To this end, my colleague Ray Blanco and I arranged a private
videoconference seminar with one of the best economists working
today, Jeff Scott of Cognilytics. It was an extremely interesting
discussion that yielded new insights into the role that technological
change played in the housing crisis that, in turn, led to
the implosion of the global financial system. More accurately,
it was the inability of the financial elite to recognize and
accept that technological change, but I'll have to tell you
about it another time.
Events have, in fact, intervened. Another patent ruling has
shaken the stem cell industry. This ruling, of course, is
close on the heels of the court decision that just overturned
patents on human genes. That decision is not final yet and
may end up in the Supreme Court. It could, however, overturn
the important telomerase gene patent owned by Geron Corp.
(NASDAQ: GERN).
The ruling I'm going to discuss today could also impact Geron's
IP library and its future. Specifically, on April 28, 2010,
the U.S. Patent and Trademark Office effectively voided U.S.
Patent No. 7,029,913, owned by scientific IP powerhouse the
Wisconsin Alumni Research Foundation (WARF). The decision
reversed an earlier determination by a USPTO examiner and,
like the gene patent decision, will almost certainly be appealed.
The patent in question broadly covers the use of human embryonic
stem cells. It was issued on April 18, 2006, and set to expire
in 2016. The point, however, is that Geron bought exclusive
rights to the eSC patent from WARF. This is why Geron's own
press release simultaneously plays down the ruling and emphasizes
that it may be reestablished in review.
I'm not saying, however, that the company's IP is completely
unprotected without patent 7,029,913. This broad central eSC
patent has been bolstered by many other patents. These are
known as “picket fence” patents that cover various
details of the implementation of the major patent.
Even without Patent No. 7,029,913, Geron has significant
patent protections regarding use of eSCs and probably, more
importantly, induced pluripotent SCs. Its press release, in
fact, points out that “For example, we hold method patents
covering processes used to produce differentiated, functional
cells, and composition patents that cover the differentiated
cells themselves. Our patent portfolio is substantial today,
and it will continue to grow in parallel with our technical
development work, providing Geron with long-term protection
for our stem cell products.”
This is a typical biotech IP strategy. First you go for the
broad patent based on the big idea. Then you bolster it with
as many method or “picket fence” patents as possible.
Then, if the broad concept patent doesn't stand, you can still
protect your technology with myriad patents on specific techniques
developed by the company to exploit the larger concept.
So I'm not yet giving the sell signal on Geron. Besides these
“picket fence” patents that impact critically
important induced pluripotent stem cells, many legal analysts
expect that it will win its appeal and maintain ownership
of the telomerase gene. On the other hand, I do want to tell
you why the ruling against WARF could be extremely good news
for BioTime Inc. (AMEX: BTIM). Read
More
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