|Locked Up and Ready to Run: ILNS|
|Monday, 12 July 2010 00:00|
On Friday morning, we let our subscribers know via e-mail about a micro-cap stock that is going to be attracting a lot of attention in the weeks and months ahead.
As I reported via e-mail directly to our subscribers, we have uncovered a company with several- previously undisclosed- licensing deals which many, including some of the companies themselves, may not want investors to know about just yet. Several staffers and I have done much digging since first finding out about Intellect Neurosciences, Inc. (OTC:ILNS) in September of last year.
We felt strongly that company had the potential to be one the top undiscovered penny stocks last year, but we had to bite our tongue because the stock simply had too much debt and overhang. If we had reported what we knew then, investors may have seen the share price stall in place. Worse yet, the company came close to closing its doors, but now (within the last 3 trading sessions) most of the overhang has been cleaned up and it finally looks like it's ready to move up quite nicely.
No doubt the restructured balance sheet has given ILNS a new chance at success, but late last week the stock unexpectedly turned into a fantastic bottom play when one of the main investors involved in re-financing simply "dumped" a majority of their free trading shares (we're told he/she needed liquidity for another deal). The move caused the stock price to go from the mid-teens to just under a nickle on "no news," but an incredible amount of volume engulfed the stock and shares were gobbled up as quickly shares were dumped.
The reason for the sudden surge in volume baffled most experienced investors, some even called it a disaster. Afterall, didn't the company have millions of new shares issued and outstanding? Why the sudden rush to pick up discounted shares?
It turns out that a vast majority of the shares are still held by insiders who- as part of the debt redux- are subject to a one year lockup that expires on April 23, 2011. Wisely, the same investor who "cashed out" decided to keep his/her warrants in the company, which don't convert until the stock reaches a much higher price.
Perhaps it's easier now for investors to see why we feel that shares will appreciate from today's prices. But that's only half the story. Once we begin to tell our subscribers about other developments, which will be reported in this space in greater detail, they may begin to feel that ILNS is a great play not only in the short term, but in the weeks and months ahead as well.
I personally believe in this company's management team and in their science, but I'm not alone.
As many as four of the world's biggest pharmaceutical companies are betting big on this company's platform as a potential treatment for Alzheimers Disease (AD). As we told our subscribers late last week, companies with clinical stage AD products licensed to Big Pharma command high valuations, and this mostly undiscovered gem has near term value milestones from clinical data and has multiple license agreements with Big Pharma on late stage clinical products as well as their own internal programs under development.
As always, we urge everyone to do their own due dilligence, and when you do, we hope that you will see that the company's licensed molecules are the basis for more major studies currently being conducted and paid for by Big Pharma than anyone has ever disclosed publicly.
-Two royalty-bearing licenses with Big Pharma on late stage clinical Alzheimers drug candidates
But we've done a great deal of research and have discovered even more reasons why this stock could become a huge winner as soon as more people become aware of it. We will begin to share our detailed findings with the rest of the market and news wires as soon as tomorrow. We hope readers will learn more about ILNS than even the company is allowed to disclose publicly due to strict gag orders and non-disclosure agreements. Other reporters who have researched the company believe an Alzheimer's cure could be closer than we think. The prestigious British medical journal, The Lancet, has published recent experimental findings which lend credibility to that belief.
At this point, know that those licensing deals represent potentially hundreds of millions of dollars to the company in milestone payments.
In addition, we've learned that the company has kept "the best molecule of the bunch" in development within in its own pipeline. In fact, the company's technology is well represented as "the best hope" for a new mega-blockbuster vaccine aimed at the $20+ billion space for treating the progressive and fatal brain disease.
ILNS shares climbed up a little over a penny (20.54%) after we alerted paid subcribers via-email on Thursday night. We feel the company is such an intriguing penny play in the biotech sector that it will be featured as part of our upcoming "BioMed Minute" spots which are scheduled to appear to national audiences on CNBC, Bloomberg, Fox Business, MSNBC and other major networks as soon as production on the video series is completed sometime during the next four weeks.
In addition, we met with the CEO of Intellect Neurosciences, Dr. Daniel Chain on Friday morning. He flew to Los Angeles to kick off several media interviews which are designed to get him exposure for his work in the weeks and months ahead. Company officials seemed very excited as I am led to believe that Dr. Chain is set to become more visible as one of the media's "established experts" on Alzheimer's. We should start seeing more of him in traditional media publications and news outlets, according to our sources. Certainly the respect for his work and research is long overdue and his molecular discoveries (decades in the making) have earned him a space in the spotlight.We believe many people will be talking about this company as we begin to unfold their story and share with you some of the compelling data we have found. We urge you to put ILNS on at the top of your watch list and start doing your own DD. In the meantime, look for the first of a series of reports on the company starting tomorrow.
Disclosure: Long ILNS