Prometic Life Sciences Inc. (PLI.TO)

Had owned this in varying degrees, because it tends to be fairly volatile. Was originally attracted by their filtering technology, and have so much more efficiency and can drive so many more things out of that same litre of plasma than other technologies can. As an offshoot, they can drive many different layers out of that, they then would be able to develop some of these small molecules that they have had a lot of success with in very early clinical trials. Has a tremendous amount of runway. They are going to go through a process of having to raise more money to go through trials. Recently raised $60 million, and the stock has kind of languished while the market digests that. Expects it will end up being one of the marquee stories of biotech drug development in Canada over the next 5-10 years. In the meantime, it will be very volatile. Hold a core position and trade around it.

There are 2 sides to the business. He was attracted to their manufacturing side of taking blood and removing proteins and plasma with a filtering system, which works differently than others and were able to get proteins and plasmas that traditional systems couldn’t, giving them fairly high margins. As drugs get approved, their earnings will ramp up. The other side of their business are orphan drugs, especially plasminogen which has special attributes. As these get approved, that is probably where the stock is going to take off. The stock tends to be very volatile, so it could be traded, giving you opportunities if you’ve missed it. As it runs up, you are often given chances to take profits, and then buy it back at cheaper prices.

Plasma technology that enhances drug development in a faster way. A really nice little company with great technology that is starting to see commercial applications down the road. A couple of years ago they were licensing out the technology, but they now want to keep more of it in-house. Has a good balance sheet. The market cap is very, very large compared to sales. In this type of environment, that makes it a little vulnerable to some selling. However, the potential is very much there. Management knows what they are doing and have done an excellent job so far, but they have to execute. It needs a better market to do well.

Has been a pretty decent performer relative to the rest of healthcare. Had an approval out of the FDA. Blood plasma, so there is much less risk in terms of phase I and phase II types of trials. However this is getting pretty expensive. In healthcare, he prefers Merus Labs (MSL-T).

If you are a long-term investor with a 2-5 year timeframe, this stock will do phenomenally well. You have to be aware that it is very volatile. If you are a trader, you can trade around your position as well. He likes this for 2 reasons. 1.) He was originally attracted to this business from their base business, a plasma extraction business, which has actually been proven up even more so than in the past. Just announced a renewal with GlaxoSmithKline (GSK-N). 2.) The indications that they have for different rare diseases. Over the last few months they have been announcing some of the phase 1 trial results, and the results look phenomenal. If they get one of these drugs to make it through all the approval process, still fairly early, there is a huge potential for the company. Maybe they sell the whole company, maybe they sell one of the drugs, but he thinks it certainly goes higher over time.

All the indicators are turning up and they all look pretty good. It has moved up pretty substantially in a short timeframe. There are one of 2 things you could do. You could watch to see how it reacts having broken out of the base of around $3. If that goes to $2.80, it could go a little bit deeper. You could add to your holdings but it will be pretty volatile. He would probably wait for it to come back down to test the breakout range of $2.90-$3.

This has a very high market cap because it has very good technology that people are starting to get interested in. Their last quarter was fine and they have also signed a couple of license deals that are getting people excited. Something that he really likes is momentum, which is happening with this company in a sector that is kind of wonky.

He likes to see breakouts past resistance. The chart on this shows resistance at around $2.90, and it has clearly broken through that. So far this looks pretty good. If there was a volume on this, that would be further evidence that this breakout is for real.

There has been a little bit of a bottom formation. All three lows were higher than the previous and then it took out the previous support. It looks okay and he would stay with it. If buying, maybe wait for a pullback.

A pretty profitable company and they are working on a whole bunch of different things that have great promise down the road. For him, the attraction of the sector right now, there are companies with really strong earnings that are trading on 4, 5, 6 times earnings. With something like this, a very speculative name, he is not interested.

(A Top Pick Nov 10/14. Up 1.32%.) This had done really well, and then all biotech stocks were taken out to the woodshed. They continue to do well with their PBI4050 drug. Europe has now given it an orphan drug status.

If the big dogs start to get hit, then everyone looks at others. It can be a sympathy move. A down trend has been in place for quite a while. There is nothing yet to tell him it is going to change except that it came up recently to a higher high. If we break outside of the channel then the damage is repaired. It has a head and shoulders pattern.

(A Top Pick Aug 29/14. Up 55.74%.) They effectively can take a bag of plasma, and for about $100 can derive a whole bunch of proteins, and the payback is considerable. Just got approval from the European commission and have been granted orphan drug status for their plasma derived Plasminogen. Also, have a separate drug PBI4050, which offers some very interesting opportunities against fibrosis, which has the potential of being a very big drug as well.

Owned this in the past. It broke down in the technical part of his process, so he sold it at around $2.50. Business itself is one that looks very strong. Going out to the end of this year is a little bit too short for him to be able to tell, but over the next few years there are a lot of opportunities. Have 2 really interesting businesses including manufacturing, basically taking blood and stripping out the different products, which are used in many different drug companies. This will ramp up over the next few years. Have also come up with a number of different indications for different orphan products and orphan drugs. He considers this as the lottery ticket side. Thinks it will trade higher over the next few years.

Kind of like a story where it is an overnight success, even though it has been around for 10 years. This has a little bit too much biotech for him and prefers something with more earnings and visibility.