American Water Works Company Inc. (NYSE: AWK) announced that its board of directors increased its quarterly cash dividend payment from 41.5 cents to 45.5 cents per share, a 9.6% increase.
Why It Matters: The company has increased its dividend every year since its IPO in April 2008. The increased payment is consistent with American Water’s dividend practice, which is to link dividend increases to earnings per share growth and target a payout ratio between 50% to 60% of net income.
The Backstory: With a history dating back to 1886, American Water is the largest and most geographically diverse U.S. publicly traded water and wastewater utility company. The company employs more than 6,900 dedicated professionals who provide regulated and market-based drinking water, wastewater and other related services to an estimated 15 million people in 46 states and Ontario, Canada. American Water provides safe, clean, affordable, and reliable water services to its customers.
Level Brands Inc. (NYSE American: LEVB), an innovative marketing and licensing company that provides bold, unconventional, and socially responsible branding for leading businesses, and Vancouver-based Isodiol International Inc. (CSE: ISOL, OTCQB: ISOLF), a global bioactive phytoceutical innovator specializing in the development of pharmaceutical and wellness products, announced Tuesday, April 24, 2018 the launch of their newest jointly developed cannabidiol (CBD) products. The products are CBD pain-relieving cream, marketed under LEVB subsidiary Ireland Men One (I’M1); CBD oral sprays marketed under BeTrū | kathy ireland® Health & Wellness; and CBD edibles, marketed under Chef Andre Carthen Edibles. The new products will be available in early summer 2018 at in-store and online retailers nationwide.
The Backstory: In January 2018, Level Brands and Isodiol signed a license agreement to work together to develop consumer products for kathy ireland® Health & Wellness, a licensor to Level Brands; products under the Chef Andre Carthen and Nicholas Walker brands, also licensors to Level Brands; and products for Level Brands subsidiary I’M1, the company’s lifestyle brand for millennial men. The license agreement is valued at $32 million.
Why It Matters: According to The Hemp Business Journal (as reported by forbes.com), the CBD market will grow to $2.1 billion by 2020.
Key Quote: “Level Brands and Isodiol have embarked on a decade-long partnership which has the potential to not only sell a significant amount of consumer-branded products worldwide but also bring to market new, innovative means that I believe will provide consumers the best benefits of CBD. The products we’re launching represent the cutting edge of innovation and a new way of thinking about CBD.” Martin Sumichrast, Chairman and CEO of Level Brands
Disclosure
(Level Brands [NYSE: LEVB] is a client of RedChip Companies. LEVB agreed to pay RedChip a monthly cash fee and 5,000 shares of Rule 144 stock for four months of RedChip investor awareness services.)
Dr. Henry Ji, Chairman and CEO of Sorrento Therapeutics Inc. (NASDAQ: SRNE), has been invited to participate as an expert panelist at the Fourth International Vatican Conference, in Vatican City, this Friday, April 27 at 11:25 AM GMT+1 on the topic of “Preparing for the Future in Cell Therapy.”
Why It Matters: The global health care conference (http://vaticanconference2018.com) began eight years ago. The conference aims to unite the world’s thought leaders across all disciplines to engage in a powerful conversation about the future of medicine.
Dr. Ji will share his vision for the future of cellular immunotherapy using Sorrento’s anti-CD38 and anti-BCMA CAR-T cell therapy programs for treatment of multiple myeloma. Dr. Ji will also discuss the utilization of allogeneic cell sources, including placental immune cells as well as gamma/delta T cells, for improving patient access and potentially reducing cost of cell therapies, highlighting its program with Celularity.
Key Quote: “We look forward to productive and stimulating exchanges with our peers and contributing to the advancement of the cell therapy field.” – Dr. Ji, CEO
What’s Next: SRNE recently began its Phase 1 trial in relapsed/refractory multiple myeloma. Additional programs expected to move forward this year include:
1H18 RTX IND filing and first patient enrolled for intra-articular osteoarthritis pain
2H18 combination trial for oncolytic virus Seprehvir® and CEA CAR-T for solid tumors
2H18 phase 1b clinical trial completion for CEA CAR-T in liver metastasis of primary solid tumors
With a robust development pipeline and multiple near-term milestones, investor interest should continue to grow. In the coming months, early investors could benefit from an influx of new money as the company announces positive developments.
Disclosure
(Sorrento Therapeutics, Inc. [NASDAQ:SRNE] is a client of RedChip Companies, Inc. SRNE agreed to pay RedChip Companies, Inc., a cash fee for three (3) months of RedChip investor awareness services.)
GW Pharmaceuticals (NASDAQ: GWPH), a biopharmaceutical company focused on discovering, developing, and commercializing novel therapeutics from its proprietary cannabinoid product platform, announced last week, along with its U.S. subsidiary Greenwich Biosciences, that the Peripheral and Central Nervous System Drugs Advisory Committee of the U.S. Food and Drug Administration (FDA) unanimously recommended supporting the approval of the New Drug Application (NDA) for its investigational cannabidiol oral solution (CBD), known as Epidiolex®.
Why It Matters: As per the report, the panel unanimously recommended supporting the approval of the NDA for the adjunctive treatment of seizures associated with Lennox-Gastaut syndrome (LGS) and Dravet syndrome. These are severe epilepsy-related conditions that currently lack any effective treatments here or abroad. Analysts expect that GWPH’s drug, if approved, could generate peak annual sales of $601 million in Lennox-Gastaut and $195 million in Dravet syndrome, and an additional $225 million from Tuberous Sclerosis Complex (TSC).
Key Quote: “The results from these studies suggest that this pharmaceutical formulation of cannabidiol may provide hope for a new treatment option that may be effective for some patients.” - Elizabeth Thiele, MD, PhD, director of pediatric epilepsy at Massachusetts General Hospital, professor of neurology at Harvard Medical School.
What’s Next: Shares are up more than 25% in April. With full FDA approval of Epidiolex®, shares could easily extend their recent gains. Add to that a robust development pipeline, and its easy to see why GWPH is one of the leading cannabis companies.
Therapix Biosciences Ltd. (TRPX), a biopharmaceutical company focused on discovering, developing, and commercializing novel therapeutics from its proprietary cannabinoid product platform THX-110, announced topline results from its investigator-initiated Phase IIa study at Yale University, suggesting that THX-110 significantly improved symptoms over time in adult subjects with Tourette’s syndrome
Key Quote: Adi Zuloff-Shani, Ph.D, Chief Technology Officer at Therapix: “The successful completion of this study is a key milestone in our clinical development plan of our proprietary drug candidate THX-110 for the treatment of Tourette’s syndrome for which current available treatments are frequently inadequate or unsafe.”
Interpace Diagnostics Group (NASDAQ: IDXG), a fully integrated commercial and bioinformatics company that provides clinically useful molecular diagnostic tests and pathology services for improved patient diagnosis and management, announced an agreement with BJC Healthcare of St. Louis, Mo., one of the largest non-profit integrated healthcare systems in the United States.
Why It Matters: The agreement enables all physicians across the BJC system access to both ThyGenX® and ThyraMIR® for patients with indeterminate thyroid nodules. IDXG’s ThyGenX® and ThyrMIR® are the only tests in the market that combine the rule-in properties of next-generation sequencing of a patient’s DNA and RNA with rule-out capabilities of a micro-RNA classifier to provide physicians with clinically actionable test results.
According to the American Cancer Society, thyroid cancer is the most rapidly increasing cancer in the U.S., tripling in the past three decades. Most physicians have recommended thyroid surgery, in which thyroid nodule biopsy results are indeterminate, not clearly benign, or malignant following typical cytopathology review; however, 70%-80% of these surgical outcomes are ultimately benign. Molecular testing using ThyGenX® and ThyraMIR® has been shown to reduce the rate of unnecessary surgeries in indeterminate cases.
Key Quote: “This agreement with such a well-regarded healthcare system as BJC is another strong indication of the increased commercial interest in ThyGenX® and ThyraMIR® for use in indeterminate thyroid nodules.” – Jack Stover, CEO
What’s Next: IDXG currently has four commercialized molecular tests and one test in a clinical evaluation process:
PancraGEN® for the diagnosis and prognosis of pancreatic cancer from pancreatic cysts
ThyGenX® for the diagnosis of thyroid cancer from thyroid nodules utilizing a next-generation sequencing assay
ThyraMIR® for the diagnosis of thyroid cancer from thyroid nodules utilizing a proprietary gene-expression assay
RespriDX™ that differentiates lung cancer of primary vs. metastatic origin
BarreGEN®, for Barrett's esophagus, is currently being “soft launched” with key opinion leaders as the company continues to gather data that will assist it in seeking favorable reimbursement as well as important clinical information. Positive developments on this front could provide a boost to the stock.
Disclosure
(Interpace Diagnostics [NASDAQ: IDXG] is a client of RedChip Companies, Inc. IDXG agreed to pay RedChip Companies, Inc. a monthly cash fee for twelve months of RedChip investor awareness services.)
Immuron Limited (ASX:IMC, NASDAQ:IMRN), an Australian microbiome biopharmaceutical company focused on developing and commercializing orally delivered, targeted polyclonal antibodies for the treatment of inflammatory mediated and infectious diseases, announced on Monday, April 23, 2018 the sales results of its commercially available, over-the-counter gastrointestinal and digestive health supplement Travelan® for the third fiscal quarter ending March 31, 2018.
The Backstory: U.S. Travelan® sales continue an upward trend, with a 95% increase in 3Q of FY2018 compared to the same period last year. YTD U.S. sales (end March 2018) climbed to US$381,000, a 178% increase over the same period last year. Travelan® YTD sales in Australia (end March 2018) reached US$656,000, an increase of 9% over the same period last year.
Why It Matters: The healthy growth of Travelan® sales demonstrate the success of Immuron’s continued trade-marketing program within major Australian pharmacies and its distribution in the United States through more than 193 Passport Health Travel Clinics. An additional 39 clinics within the Passport Health Travel network will commence distribution of Travelan® in the fourth quarter, providing even further opportunities to bolster U.S. sales.
Key Quote: Immuron’s Marketing Manager, David Montgomery, said, “In addition to the growing distribution of Travelan®, the ground-breaking U.S. Department of Defense research report, which was announced in January 2018, has generated excitement within the investor market and the travel medicine community. The primary goal of this ... program was to investigate Travelan®’s immunological reactivity with pathogenic bacteria including Campylobacter, enterotoxigenic E. coli, and Shigella. ... The research findings have provided further data to build on existing clinical trial results for Travelan® and have provided us with a powerful message to take to the market.”
Disclosure
(Immuron Ltd. [NASDAQ: IMRN] is a client of RedChip Companies, Inc. IMRN agreed to pay RedChip Companies, Inc. a monthly cash fee for 12 months of investor awareness services.)
According to a study conducted by University of Central Florida and Singapore Management University, hedge-fund managers with high testosterone underperform those with low testosterone by 5.8 percent each year.
Controlling for variables such as risk and market environment, the study of more than 3,000 hedge-fund managers showed that high-testosterone managers “trade more frequently, have a stronger preference for lottery-like stocks and are more likely to succumb to the disposition effect.”
The disposition effect refers to the tendency of investors to sell assets at higher prices and hold on to those that have dropped in value. Basically, cutting your winners short and letting your losers ride.
Interestingly, researchers also found fund-of-fund investors often had similar testosterone levels as the managers of the funds they selected.
This shouldn’t be too surprising, as markets often succumb to self-reinforcing cycles. We most recently saw this with the short volatility trade which led to the markets’ February dive as it unwound. Crypto-currencies are another recent example.
Will the alpha-male dominated hedge funds follow a similar path? Only time will tell.
Spectrum Global Solutions (OTC: SGSI), a single-source provider of end-to-end, next-generation wireless and wireline network solutions to the service provider (carrier) and corporate enterprise markets, reduced its issued and outstanding common stock last week by more than 124 million shares.
Why It Matters: The share exchange, which replaces the 124+ million shares of common stock with a newly issued preferred instrument, was approved by management last week. Reducing the shares outstanding by such an amount should have a positive impact on valuation moving forward.
Key Quote: “Management is committed to providing shareholders with value. Reducing the number of shares outstanding should immediately return value to our shareholders.” – Roger Ponder, CEO
What’s Next: With a smaller share structure, the steady flow of news we’ve seen regarding the company’s growing contract pipeline, should it continue, could make it easier for the shares to trade higher, as more investors battle over fewer shares. Favorable industry tailwinds and a proven history of execution through its subsidiaries strengthen the opportunity, while reducing risk.
Disclosure
(Spectrum Global Solutions [OTC: SGSI] is a client of RedChip Companies, Inc. SGSI agreed to pay RedChip Companies, Inc. a monthly cash fee for six (6) months of RedChip investor awareness services.)
Green Spirit Industries (OTC: GSRX), a cannabis-focused company building vertically integrated operations in key markets for legal marijuana in the U.S., strengthened its foundation in Puerto Rico last week with the addition of Juan Bauzá Salas, former Secretary of Agriculture of Puerto Rico, to the company’s advisory board. It also announced notification of its prequalified license for a new dispensary in Bayamon, Puerto Rico.
Why It Matters: GSRX has an early-mover advantage in what is expected to be a large market for medical marijuana (and in the future, possibly recreational marijuana). The Company expects to open more than five dispensaries on the island this year (first location in Dorado opened earlier this month). As the marijuana industry is highly regulated, the former agriculture secretary is a strong addition to the team.
Disclosure
(Green Spirit Industries [OTC: GSRX] is a client of RedChip Companies. RedChip Companies, Inc. received 1,000,000 registered shares of GSRX for consulting services and 50,000 shares for investor awareness services. Be advised: RedChip may sell some or all of its shares at any time, including when you are buying.)
Esports Entertainment Group, Inc. (OTCQB: GMBL), a licensed online gambling company with a specific focus on esports wagering and 18+ gaming, added another 15 esports teams to its affiliate marketing roster last week, bringing the total up to 26 teams.
Why It Matters: Affiliate marketing agreements should drive the traffic needed to support GMBL’s recent launch of VIE (https://vie.gg), the world’s safest, most secure, and most transparent esports wagering platform.
Key Quote: “We are proud to announce that we will be working VIE Esports. We've decided to partner and promote VIE because of our great confidence in their business and model. Specifically, they provide full transparency, which, we believe, is very unique in the esports wagering market. The security, regulation and SEC oversight of Esports Entertainment Group significantly increases the trust factor in VIE.” – Titanium Cloud e-Sports
What’s Next: Esports wagering is expected to explode to more than $23 billion by 2020. GMBL makes money by matching bettors. Win or lose, GMBL makes money. Gaining just a fraction of the potential $23 billion in esports wagering will bode extremely well for GMBL and its shareholders.
Disclosure
(Esports Entertainment Group, Inc. [OTCQB: GMBL] is a client of RedChip Companies, Inc. GMBL agreed to pay RedChip Companies, Inc. a monthly cash fee for six (6) months of RedChip investor awareness services.)
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Quote of the Week
"An investment in knowledge pays the best interest."
Benjamin Franklin
IDXG Fact Sheet: Interpace Diagnostics (NASDAQ: IDXG) 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: TapImmune (NASDAQ: TPIV) 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: Immuron Ltd (NASDAQ: IMRN) is 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: Digital Ally® (NASDAQ: DGLY) 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: Catasys Inc. (NASDAQ: CATS) 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
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