Nuvo Research (NRI-T)

(A Top Pick Oct 8/15. Up 18.06%.) A nice little company he discovered a few years ago. They had a big fight with their US distributor, and won $50 million. They got a new distribution for their topical cream and it took off. Had a bad 3^rd quarter. They have a ton of cash, so there is room for M&A and new products.

Has been involved in this name for about 1.5 years and has done well on it. They have 2 sides to their business. One produces a topical drug called Pennsaid, which is licensed to do sales in the US. The other side is that they are developing drugs, particularly in allergies. The stock plunged from $10-$5 because they had negative results. They have $50 million in cash. He likes this company.

One side is a biotech company to develop new drugs and the other is a specialty pharma business. The problem is that they have $50 million in cash and $75 million capitalization. He thinks they will separate the companies. It is worth $12 per share unless they hit it big in the drug side.

A drug company that has a commercial product that is selling. Also has a very interesting allergy drug they are testing in Germany. If they can come up with a really effective treatment, this stock is going to go a lot higher. Results from phase 2 clinical trials are out in a week or 2. He has done extremely well in this name. Be a little bit cautious until you see what the clinical results are, but this is a classic case of “buy on rumour and sell on news”. Have a pile of cash so the downside is pretty limited. If it works out, the stock is going to go much higher, but if it doesn’t the downside could be $6 only.