, The Green Pennies Stock Report: 08/10/17

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Thursday, August 10, 2017

Buy Quidel Corporation! Insane Upward Trend With Gains Of 25.35%

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  • Quidel is at a three year high with a pps (price per share) of 34.12
  • Quidel announced that they have entered into a definitive agreement to acquire Alere Triages' Assets
  • Made ~$118,189,000 in Gross Profits
  • The Global Biotechnical Market was valued at $270.5 Billion in 2013
  • Analysts gave QDEL an average estimate of ~$241.32 million for the expected total revenue in 2018.
Originally Written On...
Aug. 10, 2017 ...



Quidel Corporation (QDEL) is a biotechnical company that develops, manufactures, and markets their diagnostic testing solutions for infectious diseases, women's' health products, and gastrointestinal diseases. From their research and development efforts, Quidel has a wide range of products to offer. To begin with, they just received FDA Clearance and CLIA waiver for their award winning point-of-car Sofia 2 Instrument which is used for the rapid detection of respiratory syncytial virus (RSB). Also, the company has recently also gotten FDA Clearance to market their Solana C. difficile Assay for the detection of Clostridium difficile-infection (CDI). Their other products include QuickVue influenza, QuickVue RSV, Quidel Molecular RXV, and much more.

On July 17, 2017, Quidel announced that they have entered into a definitive agreement to acquire Alere Triages' Assets. This will allow Quidel to distribute the Triage MeterPro products and BNP assays which brought the acquired company $197 million in revenue for 2016. This comes two months after Quidel completed an acquisition of InflammaDry(R) and AdenoPlus(R) Eye-Health Businesses. With Quidel acquiring so many companies, it is clear that the company is growing into a major player in the biotechnical market.

QDEL is on a clear upward trend following these news releases with no end in sight. Currently, QDEL is at a three year high with a pps (price per share) of 34.12. From 10/13/14, QDEL hit its high at the time of ~28.6 and then fell to its three year low of 14.16 on 2/15/16. From that date forward, the stock has enjoyed many volatile increases upward. With QDEL shattering its previous highest resistance line, the sky is currently the limit for this stock. With a gold cross spotted, QDEL is certainly enjoying a very bullish market.

Looking at Quidels' income statement for 12/31/2016, they had ~$191,603,000 in total revenue, ~$73,414,000 in the cost of revenue, which left them with ~$118,189,000 in Gross Profit. After operating expenses, the company took a net loss of ~$4,439,000. It's worth noting that a large portion of the operating expenses involved acquisitions and research. If the company didn't partake in this venture, the company would have had a very large overall profit. Looking at the balance sheet, we see that QDEL has ~$225,394,000 in total assets with ~$169,508,000 of it being on-hand cash. With the company having this much on hand capital, it's obvious that the company is in a great position to grow into a major member in the biotechnical market.

QDEL has 33.21 million outstanding shares with a market cap of 1.13 billion. With relatively so few shares on the o/s, the added revenue from the company will definitely lead to increased growth in the pps. The trailing P/E is 284.33 and the forward P/E is 79.35. The Beta is at 1.33 and shows a 52-week change of 37.89%. The company boasts a Profit Margin of 1.83% with an operating margin of 8.29%. Finally, we see that the 50-day moving average is 26.59 and the 200-day moving average is 23.11. This creates a golden cross which signals a continuingly bullish market.

The global biotechnical market was valued at $270.5 Billion in 2013 with a rate of increase of 12.3%. This increase is attributed to the rising prevalence of diseases such as cancer, hepatitis B, and other orphan disorders. Also, there is a number of government initiatives that are driving this market forward. The biotechnical market is considered a very competitive market as many new companies arise to compete against know treatments.

Many analysts have this stock rated as a buy with their average estimates of 2018 revenue at ~$241.32 million. The analysts' price targets averaged out at a pps of 26.33 with the higher estimates falling at 36.00. With these numbers, we see that Quidel is beating analysts expectations. With the current trend factored in, we see that QDEL has an EPS (Earnings Per Share) Trend of 0.43. Lastly, it is worth noting that this stock currently does not offer any dividends. With QDEL beating expectation all around, it is definitely time to buy. Whether you're a short or long investor, you will certainly be in great standing to make money.

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Disclosure


I have no positions in any stocks mentioned and have no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.

Invest at your own risk.
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Buy Aptose Biosciences. Inc. (APTO) As Analysts Give Buy Rating With A Price Target Of $9 (X5.5 ROI)!

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  • Analysts set a price target of $9 (%550 ROI)
  • Both Short Term and Long Term Plays Can Be Made
  • Cancer/Tumor Profiling Market is poised to reach $61.87 Billion Dollars by 2021
Originally Written On...
Aug. 10, 2017

Aptose Biosciences. Inc. (APTO) is a biotechnical company that looks to find treatments for cancers such as acute myeloid leukemia (AML), high-risk myelodysplastic syndromes (MDS), and other hematologic malignancies. With their research, APTO has discovered a form of treatment known as (CG'806) which is undergoing testing currently. On June 8, 2017, the company was rated as neutral by Rodman & Renshaw, and more recently was rated by analysts as a buy with a price target of $9 (%550). This news follows after a long period of decline, and signals a trend reversal for the stock! There's even growth to be found here in the short term. Earlier this week, the stock managed to break above the major upward resistance line of $1.55. This signals a near term move to $2.34 which is a very profitable 51% increase. Technicals are indeed indicating that money is to be made here!

Fundamentals for Aptose Biosciences are showing continued interest in their research. Investors large and small are aiding to continue the noble work they are doing. APTO currently has a very manageable amount of debt, with most of the expenses being paid. Aptoses' balance statement shows that APTO has ~$11,958,000 in on-hand cash with a total of ~$12,676,000 in overall business assets. These numbers added with the increase of good news from the company regarding their treatments' lab results are signals that we might be nearing excellent company growth.

Technicals for APTO show a newly emerging upward trend. Over the course of the last three years, APTO has been slowly declining in PPS (price per share). That changed on November 28, 2016, when a huge amount of buy volume stopped the downward trend. A period of consolidation occurred until about May 1, 2017, when a huge amount of buy volume pushed the stock up. This led to a newly formed upward trend that is continuing to this day. What makes this upward push different from the past is the huge amount of interest this has created. The stock is trading much faster now as investors are flocking in at the new opportunity.

The trailing P/E for Aptose is -1.48 and the forward P/E is -2.13. These numbers show that APTO is currently undervalued. With a market cap of 29.06 million and shares outstanding being at 18.94M, it would not take much for this stock to move north. Also, the 50-day moving average is currently 1.24 and the 200-day moving average is 1.13. These numbers indicate a golden cross which backs the thesis that we have a bullish market.

Analysts are reporting that the global Cancer/Tumor Profiling Market is poised to reach $61.87 Billion Dollars by 2021. They say this is due to an increase in the number of cancer cases across the globe as well as an overall growth in funding given to research institutes. With this increase in funding, those with cancer will receive more effective treatments, better prediction times, and a higher survival rate. When it comes to Aptose, the company is not just a stock. It is a company that is trying to save lives, and in doing so, is protecting our communities.

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Disclosure


I have no positions in any stocks mentioned and have no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.

Invest at your own risk.
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Progressive Care Inc. (RXMD) Marches On

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  • Q2 has come to an end and investors are eager to see the numbers
  • RXMD continues to grow in net revenue
  • $788,000 in on hand cash at the end of Q1
  • A period of consolidation continues to plague the stock
  • A brief history of the stock as we know it

Originally Completed on:
Jul 18, 2:34 AM

RXMD has finally finished another quarter and her investors are eager to see the further progress the company has made. Year over year, month after month, RXMD has been exceeding their growth goals. Looking at the First Quarterly Report from 2017, we see that their net sales are up ~23% with $4,847,663. Also, their gross profits are up ~70% with $1,578,960. RXMD significantly improved their net sales for the year with an overall increase of ~34% with $18,318,567.

RXMD has a very high cost of sales. Looking again at the First Quarterly Report we got in 2017, we see that the cost of sales to their general expenses eats up about ~89% of their gross profits. Investors have advocated that it finds new ways to cut down on the cost of sales, as this would add more financial security.

With the many agreements that RXMD has signed in the past (like the 340B), growth defiantly seems to be in the future. So much so that they have been trying to get licensed to do business in all 50 states in America. They have spent a lot of their on-hand cash to build a new warehouse to store products as well as a robotic dispensary system that will increase efficiency and help their staff focus on keeping a positive customer service face. While we are just only starting to see the benefits of this move, it assures that RXMD has the capacity to meet its growth.


Technicals show that the stock is in a period of consolidation. RXMD hasn't seen much movement after its Elliott Wave in 2016. Interest is still high though people are waiting and watching to see what happens next. Many investors are aching to see continued growth, lower expenses, and possibly a merger. With the movement that we are seeing, it is probably best to hold your shares. If the stock starts to make a move downward, then it will likely be a period of selling the stock (though there would have to be a reason for the run to occur). If the stock starts to make a move higher (again with a positive event), then it is likely the stock will make a run higher.
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Many investors over the past year or two of RXMD can tell you that this stock has been through a lot. Starting back in late November of 2014, interest grew quickly as investors were starting to see signs of a financial turnaround. The company decided to launch a period of dilution to raise funds for the survival of the business. Once dilution began to set in, interest (and the pps) started to take a hit slowly. On January 26, 2015, the stock shot up to ~0.05 pps, and then later fell to a relative low of about 0.004 pps. Consolidation would ultimately cost the stock about 1250% in price per share.

As October 2015 started to come around, the financials were finally starting to turn around. With the money RXMD was able to raise, the company was starting to become overall profitable. Also during this time, the companies issuances of dilution were starting to come to an end. Finally, the stock could rise without being beaten back down. Between October 5, 2015, to February 22, 2016, the stock rose ~882%. Once this "run of the bulls" finally found its top, an Elliott Wave was spotted and led to a period of consolidation that arguably is lasting to this day.
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With RXMD's continued growth, it is a stock to watch. If you are a long-term investor, this might be the stock for you. With year over year improvements and added growth, this stock might see the OTCQX board or even the NASDAQ. If the company was to merge with another company down the way (which the company seems to be trying to do), this stock could become more volatile for the better.

For the short traders out there, this stock is not nearly as volatile as it once was. Some people on the stock are trying to flip for "beer money", but most have gone to other stocks as this board is relatively dormant. That is not to say that it is not one to watch. RXMD has been on a bottom for awhile, and once it starts to move, it will likely run fast.

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Disclosure


I have no positions in any stocks mentioned and have no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.

Invest at your own risk.
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