Latest news, reports, and more from the RedChip Nation.
RedChip.com     April 04, 2018     Contact    
 
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Catasys enrollment increases 31% Year over Year as of Dec. 31, 2017
 

Catasys, Inc. (NASDAQ: CATS), a leading AI and technology-enabled healthcare company, has substantially increased its enrollment by 31% YoY as of Dec. 31, 2017. Also, in 4Q17 the Company’s billings increased 33% YoY, to $2.8 million.


Contracted with a growing number of national and regional health plans, the Catasys OnTrak solution treats members with behavioral conditions that cause or exacerbate co-existing medical conditions. As of the beginning of March 2018, the Company’s current outreach pool was approximately 30,000, 20% higher than at the end of 2017.


Why it matters: Going forward, management expects substantial growth opportunities in FY18, and they have provided a financial guidance of $20 million in billings for FY18 and a year-end run rate of at least $25 million. Two analysts have buy ratings on CATS. Their target prices: $7.00 and $5.30.


Key quote: Terren Peizer, Chairman and CEO of CATS: “Catasys seeks to improve the health of insured members and subsequently lower costs for our insurance partners. Lowering the high costs to major health plans is the primary component of Catasys’ investment thesis.”


The back story: With its OnTrak solution, Catasys, Inc. improves member health while reducing inpatient and emergency-room utilization, driving a reduction of more than 50% in enrolled health insurers’ costs. OnTrak is currently available in 19 states to members of several leading health plans, including six of the nation’s largest plans.


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Isodiol Deal Highlights 'Very Unique Position' of Level Brands
 

Kathy Ireland, Chief Brand Strategist and Chairman Emeritus of Level Brands (NYSE American: LEVB), released on March 20 a video introducing her company. The supermodel-turned-entrepreneur called attention to the “very unique position” of Level Brands. She highlighted a 10-year deal valued at $32 million with Isodiol International (OTCQB: ISOLF), through which hemp-based cannabidiol (CBD) skin-care products will be launched under the Kathy Ireland Health & Wellness brand.


“We believe that with Level Brands’ support, Isodiol will be able to move Kathy Ireland Health & Wellness products into major retailers in the space,” Ireland said.


The Isodiol deal allows Level Brands to realize the potential for cross-promotion with the brands it manages, Ireland said.  


“We believe there are many opportunities for deals of this significance,” Ireland said, promising to “maximize [such deals] over the next three to five years.”


A branding and marketing company, Level Brands has no CapEx or R&D costs, and its margins consistently approach 80%. The company has no debt, Ireland said.


Why it matters: The video encapsulates the strategy and goals of Level Brands, a company that went public in November 2017. Ireland’s words further the effort by Level Brands to increase awareness of what Level Brands believes is a winning formula.


Key quote: Management has “the infrastructure, know-how, and team to grow Level Brands into a powerful business.” — Kathy Ireland, Chief Brand Strategist and Chairman Emeritus, Level Brands, Inc.


The back story: Level Brands strives to maximize the value of brands through entry into licensing agreements with partners that are responsible for the design, manufacture, and distribution of licensed products. In addition, Level Brands seeks to secure strategic licenses and joint-venture partnerships for their brands, as well as to grow their portfolio of brands through strategic acquisitions.


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In Phase 1 Trial for Ovarian and Breast Cancer, TapImmune Publishes Positive Safety Results
 

TapImmune Inc. (NASDAQ: TPIV), a leading clinical-stage immuno-oncology company with ongoing clinical trials in ovarian and breast cancer, published positive safety results in a Phase 1 trial. The trial covered its TPIV200 multi-epitope T-cell vaccine targeting Folate Receptor Alpha (FRa) in patients with ovarian and breast cancer.


Why it matters: The results show that TPIV200 vaccination was well-tolerated by all patients, and more than 90% developed robust and durable antigen-specific immune responses against FRa without regard for HLA type. These results align with the intended mechanism of action of the vaccine.


In addition, the Company published a white paper that further details this preliminary data and its potential implications for the Company's ongoing Phase 2 clinical trial of TPIV200 in women with platinum-sensitive ovarian cancer.


Key quote: Peter Hoang, President and CEO of TapImmune: “Although this safety trial was not designed to evaluate clinical efficacy outcomes, all patients remained alive at last follow-up, at least two years following initiation of immunization, and the large majority of vaccinated patients developed lasting immune responses against multiple FRa epitopes.”


The back story: TapImmune is in four active Phase 2 clinical trials (six clinical trials in total) in the $100+ billion market for immunotherapy cancer drugs. The global market for cancer drugs is projected to top $150 billion by 2020 (IMS Health), and much of the growth is being driven by constant innovations in cancer immunotherapy. Currently, the company is advancing its robust mid-stage clinical pipeline focused on breast and ovarian cancer.


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Immuron Reports Positive Top-line Results in Phase 2 Non-Alcoholic Steatohepatitis (NASH) Clinical Study
 

Immuron (NASDAQ: IMRN), an Australian biopharmaceutical company focused on immunotherapy using dairy-derived antibody products for humans, on March 7, 2018 reported positive top-line Phase 2 results in a NASH clinical study.


Key Quote: “This is truly a proof of concept for this first-in-class drug candidate.” Arun Sanyal, Professor of Gastroenterology and Hepatology, Virginia Commonwealth University and lead principal investigator for the study


Why it matters: The results demonstrated excellent safety and tolerability and have spurred Immuron management to take their lead drug candidate, IMM-124E, to Phase 2 proof-of-principle clinical trials.  


The top-line results have also added substantial share value. In the wake of the results, the market cap of IMRN surged 67%, from $27 million to $45 million. This is in keeping with other successes by similar companies in similar trials. For example, Intercept Pharmaceuticals had positive Phase 2 results for NASH, leading to an increase in market cap from $1.5 billion to $6.6 billion.


In March 2018, the Company secured $5.1 million in a capital-raise in a private placement with a large U.S. institutional investment fund. The capital-raise provides stability to the Company.


Back Story: Immuron's IMM-124E is in three Phase 2 clinical trials for NASH, alcoholic steatohepatitis (ASH), and pediatric non-alcoholic fatty liver disease (NAFLD). NASH therapies are estimated to become a $40 billion global market by 2025, and significant valuations have been afforded to companies in Phase 2 trials for NASH. Companies such as Galectin Therapeutics ($136.6 million), Conatus Pharmaceuticals ($171.3 million), and Genfit SA ($727.9 million), are in Phase 2 trials for NASH and have valuations higher than Immuron.


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Green Spirit Industries Enters Multi-Billion Dollar California Marijuana Market
 

Green Spirit Industries (OTC: GSRX) hit a major milestone in March with its expansion into the California marijuana market, which is estimated to hit $3.7 billion in 2018. In early March, GSRX announced the acquisition of The Green Room, an established dispensary operation in the popular seaside town of Point Arena in Northern California. Last week, GSRX announced it had acquired a majority stake in Spirulinex, a Bay Area cannabinoid manufacturer.


Why It matters: To anyone who has been following GSRX’s filings, the recent news doesn’t come as a surprise. The Company has made it clear that it intends to build a vertically integrated operation in key markets in the United States, and these latest announcements demonstrate its ability to execute on those plans. Acquiring established, profitable operations could catapult GSRX to the top of this young, fragmented and very sizable industry.


Key quote: “With our majority stake in Spirulinex, Green Spirit has now added a major link of the rapidly growing cannabis product supply chain to the Company’s portfolio of businesses.” – Les Ball, CEO


What’s Next? Led by Les Ball, former Chairman of Macy’s Midwest, GSRX is well-positioned to become a leader in the industry. Recent announcements are probably just the beginning for the Company, which is forecasting $300 million in sales by 2022, with 30% net margins. Achieving even just a fraction of that goal could send shares much higher.


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Interpace Diagnostics Signs 8th Blue Cross Blue Shield Plan Since Start of 2018
 

Since the start of 2018, Interpace Diagnostics (NASDAQ: IDXG), a bioinformatics company and leading developer of molecular tests for cancer, has signed agreements for coverage of its tests with eight Blue Cross Blue Shield plans. With the latest additions to its coverage network, IDXG’s innovative ThyGenX and ThyraMIR tests for thyroid cancer are now available and covered for 285 million Americans.


Why It Matters: IDXG’s molecular tests for thyroid cancer are the only tests in the market that include the rule-in properties of next-generation sequencing of a patient’s DNA and RNA along with the rule-out capabilities of a micro-RNA classifier to provide physicians with clinically actionable test results. Under current standards of care, thyroid surgery is recommended for indeterminate biopsy results; but up to 80% of these surgical outcomes are ultimately benign. With more than 15,000 ThyraMIR tests conducted to date, IDXG has demonstrated the ability to reduce the rate of unnecessary surgeries.


Key Quote: “Blue Shield of California’s coverage of both ThyGenX and ThyraMIR continues the favorable trend among BCBS plans to extend coverage of our valuable thyroid products to their members.  In the past, most of our business with BCBS plans has resulted in ‘0 pays’ for us, so it is nice to see this significant turnaround.” – Jack Stover, CEO


What’s Next? Beyond its successful work in thyroid cancer, IDXG has a robust pipeline of products, including tests for pancreatic cancer, lung cancer, Barrett’s esophagus, and more. With a proven ability to bring tests to market and gain physician/patient adoption, IDXG is well-positioned for growth and upside


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Cryptocurrencies: A Rational Perspective
 

In January, we published a guest article from a CFA-charter holder that explored the actual value of crypto-assets. Since then, the price of Bitcoin has fallen more than 50%, and other crypto-assets have fallen even further.


Since our founding in the early 1990s, we’ve seen quite a few bubbles/manias come and go.


The crypto-mania reminds us of the tech bubble of the late 1990s and early 2000s. It was true the Internet and other technologies underpinning that meteoric rise in stock prices would go on to change life as we know it, but markets are an interesting thing. When they go too far, too fast, they end up falling fast and hard.


Many crypto-traders are probably too young to remember, but it’s worth taking a closer look at the NASDAQ’s performance since the tech bubble.


On an inflation-adjusted basis, it took the NASDAQ 18 years to regain its 2000 bubble high. During that time, the internet and technology have become ubiquitous.


In another 18 years, blockchain technologies may well become an integral component of transactions, record keeping, and more. But that doesn’t mean crypto-asset prices will move up accordingly. Rather, history indicates it could be many, many years before prices regain their mania peak.


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Small-Caps Continue to Shine Relative to Large Cap Peers
 

While major media headlines often focus on large-cap indexes, which have hit all-time highs this year, small-caps continue to receive less attent


Over the past 24 months, the Russell 2000 index has gained 39.4%. Compare this to the S&P 500, which has increased 27.8%. That is nearly 50% better performance for small-caps during the period.


SOURCE: Yahoo! Finance


Most investors should have exposure to small-caps via ETFs like $IWM or actively managed small-cap funds like those managed by Royce Funds. The biggest gains, however, in small-caps are generated by investors who themselves pick and manage a basket of stocks.


Small-caps are the one area of the market where retail investors can often have an advantage over the large Wall Street players.


Large funds, whether passive or active, are often unable to participate in most small and microcap stocks. And when they do take a position, they often move the price up with their buying and down with their selling, due to limited liquidity.


The average retail investor can make moves that most funds cannot. It’s much easier to buy and sell 5000 shares of a $4 stock that trades 20,000 or 30,000 shares a day that it is for a fund to accumulate (and eventually distribute) a position of 200,000 shares or even 2,000,000 shares.


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MamaMancini's Appoints Lawrence Morgenstein as CFO
 

MamaMancini’s Holdings, Inc. (OTCQB: MMMB), a marketer of specialty prepared, frozen and refrigerated all-natural food announced that Lawrence Morgenstein has been appointed as Chief Financial Officer, effective April 1, 2018.


Why it matters: Larry Morgenstein brings MamaMancini’s a strong track record of accomplishments with more than 20 years of senior level finance experience.


He most recently served as Controller at Emerging Power, Inc., a custom designer of portable power solutions and standard-sized battery packs for various applications including OEM, Government Agencies, Military, Aerospace and Industrial.


Back Story: MamaMancini has significant growth potential for its specialty food product lines of authentic home-style all-natural Italian meatballs, meat loaf, stuffed pepper and pasta (lasagna) dishes.


The Company has successfully launched 12 new products on QVC since June 2015, and its distribution channel has grown to over 12,200 U.S. supermarkets, capturing 30% of market share.


The Company's recent acquisition of Joseph Epstein Foods Enterprise, the sole manufacturer of MamaMancini's products, is expected to add beneficial synergies to business operations.


The Company has been cumulatively profitable since July 31, 2016. 3QFY17 was another record quarter of revenue, up 61% YOY to $7.35 million


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Spectrum Global's Telecom Contract Pipeline Expands Rapidly in March
 

In back to back press releases, Spectrum Global Solutions (OTC: SGSI), a relative newcomer to the public markets, announced more than $2 million in new client orders in March. A leading provider of telecom engineering and infrastructure services in North America and the Caribbean, SGSI, through its wholly-owned subsidiaries, has built an impressive client roster of major service providers and enterprise customers and is ideally positioned for continued growth.


Why It Matters: With the roll-out of 5G and the introduction of new communications-heavy technologies like the internet of things, the need for engineering and infrastructure services in telecom and enterprise markets should remain robust for many years to come. SGSI has proved itself a player in this space, and the recent contract wins show a major acceleration of sales. As of early March, the Company had generated $3.5 million in new contract wins for the year. In the two weeks thereafter, they added another $2 million.


Key Quote: “We anticipate seeing more of this activity during 2018.” – Roger Ponder, CEO


What’s Next? With favorable industry trends underpinning its core telecom-services business, it’s likely we’ll see a steady flow of new contract-win announcements in the months ahead. Right now, the stock trades for a market cap of under $3 million – less than the sales the company generated in the first two months of the year. As more investors learn of SGSI, the shares are likely to begin reflecting a much better valuation, creating a big win for those accumulating shares at current levels.


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Esports Entertainment Launches New Esports Wagering Platform
 

Last week, Esports Entertainment (OTCQB: GMBL) launched the world’s safest and most secure and transparent esports wagering platform, VIE. Esports wagering is expected to surpass $23 billion by 2020.


Why It Matters: VIE offers bet-exchange-style wagering on esports events in a licensed, regulated, and secured platform to the global esports audience, excluding jurisdictions such as the United States that prohibit online gambling. The bet-exchange model provides for player-versus-player (PVP) betting, with the house taking a small percentage of each wager, removing the Company’s risk and creating a win-win for players and the Company.


Key Quote: “We are thrilled to launch and deliver VIE to them [esports fans] at this great time for esports.” – Grant Johnson, CEO


What’s Next? In preparation for the launch of VIE, at gamescom 2017 last fall the Company secured a roster of more than 60 affiliate marketers. With VIE now live, we expect the onboarding process to get into full swing. The audience reach of these affiliates alone is estimated at more than 250 million esports viewers. Capturing even a fraction of that on its platform could lead to rapid revenue growth for GMBL.


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Quote of the Week
 
"Microcaps are a three card monte play.
If you don't know how to play, stay away"

Greg Sichenzia
Founding Partner
Sichenzia Ross Friedman Ference LLP
 
 
 
Lesson of the Week
 
The benefits of dollar-cost averaging.
Read More
 
 
 
 
Latest Video
 
 
 
 
Level Brands: Big Upside Ahead for Major Brand Licensing Operator
 
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Sorrento: Undervalued Biotech with a Potential Blockbuster CAR T Therapy
 
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Immuron: Multiple Clinical Trials Underway with Major Near-Term Catalysts
 
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Order "Small Stocks, Big Money" Today!
 
Dave Gentry's new book, Small Stocks, Big Money: Interviews With Microcap Superstars. Published by Wiley Finance, this first-hand perspective and insider information on the fast world of microcap investing is now available for purchase.
 
 
MidSouth Week in Review
 
Trade war concerns sparked a big sell-off last week.
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Recent Reports
 
  • IDXG Fact Sheet: is a fully integrated commercial organization that provides clinically useful molecular diagnostic tests and pathology services for evaluating the risk of cancer by leveraging the latest technology in personalized medicine for better patient diagnosis and management. - March 2018
  • TPIV Fact Sheet: develops immunotherapies targeting tumors and metastatic diseases for a variety of cancers. The Company's next-generation technology has been engineered to overcome the deficiencies of earlier cancer-vaccine approaches. - March 2018
  • IMRN Fact Sheet: an Australian biopharmaceutical company focused on immunotherapy using dairy-derived antibody products for humans. Immuron has a unique and versatile technology platform that can generate a wide range of products, all with a high safety profile. - March 2018
  • DGLY Fact Sheet: headquartered in Lenexa, Kan., specializes in the design and manufacture of the highest-quality video-recording equipment and video-analytic software. In industries such as law enforcement, emergency management, commercial fleets, and consumer use, Digital Ally pushes the boundaries of technology. - March 2018
  • CATS Fact Sheet: harnesses proprietary big-data predictive analytics, artificial intelligence, and telehealth. These elements, combined with human intervention and integrated, technology-enabled treatment solutions, deliver improved health to members and cost savings to health plans- March 2018
 
 
 
 
Top Movers of the Week
 
PAR led the Nation stocks higher last week, up 27%
 
 
Weekly Index Performance
 
Indexes had mixed results.
 
About RedChip
 
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