CGIX Big Tobacco or Big Pharma

CIGX Star Scientific is a company that comes along every 10 years in the stock market. Whether your trading it's fundamentals, technicals or it's short interest there is a place in your portfolio for it. Just saying, stay away in my opinion is not good enough, at least for the possibilities with CIGX. Before a valid opinion is presented I think you got to learn the whole story here. Do I think it is Speculative? You bet! But, I say that with some positive certainty that CIGX is a great speculative pick to own. If your going to own a speculative stock this is it. Why?

It is possibly the only company out there that can be bought by BIG TOBACCO or BIG PHARMA! Now that is some speculative power!

Well for starters, yes it shows up under the Tobacco sector along with Mo and the others. But, This is actually where the detective works begin. CIGX is a tobacco stock that might be disguised as a Bio Tech. Yep, a Bio Tech with the possibility of a couple of block buster products in research.

1.) The Roskamp Institue in Bradenton, FL has invested and in the process of conducting research on a compound named RCP-006. This compound has already demonstrated some positive results in that it is a natural ANTI-INFLAMATORY with benefits to ALZHEIMERS and C-Reactive Protein. For those not in the medical field CRP is a marker for heart disease. If the studies continue in a positive direction this will be a great value product for any large Bio Tech or Big Pharma Company. Think of what Lipitor did for Warner Lambert, Lipitor was invented by Warner Lamber Parke Davis and PFIZER bought the whole NYSE traded company for one product back in 1998. Lipitor was not a pfizer product.

2.) The product also helps take out the carcinogenics is tobacco making "smoking safe" Oxy Moron. Or a great treatment to stop smoking! Values to BIG TOBACCO and Big Pharma you pick it.

3.) They have won favorable patent rulings already against RJR.

4.) The smokeless tobacco product that they currently sell Dose NOT fall under the 2009 Family Tobacco ACT or even monitored by the FDA... What, you think MO or RJR would like to get there stained paws on that? How MUCH?

Yes it's a speculative stock but where have you ever seen a possible target by two sectors that have some of the deepest pockets in the world? Is it a Bio Tech or Tobacco company we will see who wins.


long CIGX

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4 things to think about and a bonus!

Hi Ho SILVER!

SLV ZSL Rubber Band Theory. First thing, I'm not suggesting a BUY in SLV or ZSL at this time at all. Especially with all the new margin requirements and volatility going on currently but I am watching for the magic point in time, for a TRADE in the SLV. The Rubber Band theory is that the BBands are over stretched on the way up (SLV)(Parabolic) which would result in a giant snap back (pullback) to a mean. This giant snapback would result in an over compensated snapback to the down side then back up to a reasonable price mean. Looks like 2 STD BB is at 36 but SLV could over compensate to 32 or even 30 the initial breakout. With all these new factors like Margin requirements, Carlos Slim and Co. Dumping we could even see more volatility this time. Retail investors are still holding profits in SLV if it was purchased last summer and might be dumping now because of all the new press, call it "running for the doors." (Capitulation) At some point in time Carlos and Co. know this and are going to be ready to pounce once again on silver. Keep your eyes and price levels on alert. Personally I think this trade (longer term is done for the next 3 to 6 months, But for a 3 or 4 BB trade I'm in!

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Market ideas

As you know I am a Wall Street Technical Strategist which is very long for “Trader” I want to offer up for your personal funds a few choices for you to think about. The companies that follow are very good, stable, growth and actually somewhat conservative choices. I will include ONE somewhat speculative company too.

One thing that I need you to know is that MAY is typically NOT a great time to buy stocks. Sell in May and go away is very real. Wall Streeter’s begin to go to vacation and market volume declines starting in May through August. Because of this I don’t want you to run out and BUY a BUNCH maybe just a little currently. I will give you some guidelines.

Catepillar CAT As you know CAT manufactures Commercial trucks and heavy equipment. This company is leading the Global recovery “I stress GLOBAL” CAT is a world leader and is not subject to fluctuations in just one economy like the US. CAT is a very strong GROWTH story. Even though the company currently trades over $100.00 it is expected to grow much more. If your into PE’s it’s 20 which is low. Currently CAT is expected to grow 30% in 2012. THE TRADE: Currently CAT is at 113.00 they just announce fantastic earnings and is selling off slightly. The closer you can get it at 110.00 the better. I think in this current time frame and month of May there is a very good chance. I would divide the money you allocate to CAT into 4 bunches. 1^st BUY at 110.00. 2^nd Buy if it continues to decline to the 40 Day Moving Average (DMA) then wait. Do not buy your last two buys until CAT moves back up through the 20 DMA and then above your first buy point. Plan 2, Just wait until late July to buy and do the same thing described above at July prices. There is no hurry here because of the summer months.

http://tinyurl.com/3tvcre6

Biogen BIIB Biogen is a Leader in the Bio Tech arena. 3 short years ago they were thought to be a possible take over story but they have developed a new compound called BG-12. The data is extremely positive on this new compound and the MS community is very excited! Biogen’s product line is very focused and strong, their other compounds are also highly used in the medical community and great data is coming out every day. This is a company that traded at $45.00 less than one year ago and now trades at $97.00. No longer a take over target. The reason, Medical Community recognition of BG-12, and Big Institution investment. BG-12 is going to be like Lipitor to Pfizer when it was released. BIG! Biogen has hired an additional 70 representatives Nation wide to keep up with demand. Even trading near $100 you have not missed the boat yet. Your looking at a 125 to 175 stock. BG-12 is going to be a huge growth engine that is not communicated on the Balance sheet yet.

THE TRADE: BIIB trades currently at $97.00. Same thing as in CAT divide the Money into 4 piles. If we can get BIIB at 95 that is going to be very good. 90 will probably be a true gift. After that, once BIIB gets above 100 and stays there 120 will come quickly.

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Some what Speculative

Sirius SIRI Sirius is the only Satellite Radio company. Their channel line up is great. Teamed with the NFL, MBA, NHL and NBA along with Howard Stern every news channel you can imagine and type of music to set every mood all for $12.00 month. This company is on the comeback after years of BURN of start up capital and bringing Howard Stern on. They also merged with XM 3 years ago. The stronger of the two names and programming prevailed, SIRIUS. I like this above $2.00. I think you have a lot of upside to 5. When will we hit 5? Don’t know that or if we even will. The momentum will build and institutions will come in at 5. I look at Sirius as a new snowball rolling down hill, there is the potential of SIRI really getting back to 2004 levels of 6 to 10. THE TRADE This is the one that I’ll let you BUY a BUNCH on a HUNCH between $1.90 to 2.10 and forget about it. Don’t go crazy this is our speculative play here and we could be wrong. SIRI is currently breaking out to the upside which means money is coming it. This is positive.

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We are moving on up!

When I was a kid sometimes I got lucky and got to stay up late on a Friday night to watch Johnny Carson. Johnny Carson did a skit where he was the “Great Carnack.” The Great Carnack was able to predict the future! Today we have the “Bernack” Ben Bernanke, the head of the Federal Reserve and the United States monetary policy. Like the “Great Carnack” the Financial Community hangs on to every word that the “Bernack” pontificates. Yesterday, For the first time in Federal Reserve history Ben Bernanki gave a press conference to shed some light on the Fed Monetary Policy. Lucky for every one here I spent my afternoon listening to the “Bernack.” His conference was nothing exciting, be thankful for that because if there was a new economic development our financial markets would have been rocked. While his conference was benign and with no surprises he predicted his same monetary policy of a LOW INTEREST RATE policy to grow jobs only concerned about inflation from a distance. His fear of a no job growth economy is more of a concern of that of a strong US Dollar. Which means the dollar will continue to decrease in value and equities and commodities will continue to rise. The markets DOW, SP500 and Nasdaq all did well yesterday. The SP500 finally finished above our magic 1350 level at 1355.

Is it all systems go yet? Almost, but we must see just one or two more closes over that 1350 level. Will the markets be off to the races? Probably not, we are starting to come into the summer months which marks low volume and Wall Street Traders going on vacation. Because Ben Bernanki’s policy dosen’t give investors many choices to do with their money. Institutions have to deploy money on a monthly basis, the only choices for funds are equities or gold / silver at this point which means stocks and commodities should go up.

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