DryShips Inc. (NASDAQ:DRYS) Shares Crumble On Stock Manipulation Claims

DryShips Inc. (NASDAQ:DRYS)

Shares of DryShips Inc. (NASDAQ:DRYS) crumbled in Friday’s trading session after the company became the subject of class action lawsuits over claims of stock manipulation. The stock was down by 27.91% to end the week at $2.17 a share. Last week’s sell off also came after the company effecting another reverse stock split and issuing an updated financial report.

Stock Manipulation Claims

DryShips Inc. (NASDAQ:DRYS) is an international shipping company that operates ocean cargo vessels worldwide. The firm operates through two segments – drybulk and offshore support. Founded in 2014, the company currently owns 13 Panamax Drybulk vessels, and 6 offshore support vessels.

The Greek carrier finds itself in a tight spot over stock manipulation claims that have seen it shed more than 90% in value over the last six months. Law firms behind the class action lawsuits allege that in a series of transactions beginning last year, DryShips Inc. (NASDAQ:DRYS) raised hundreds of millions of dollars by selling newly issued shares directly to Kalani Investments Ltd.

The money that came from Kalani allowed the shipping company to double the size of its fleet even as the stock continued to plunge.

Reports indicate that the company sold the vast numbers of newly issued shares to the British Virgin Island firm at a discount. The firm in return unloaded most of the shares immediately after the stock soared to all-time highs in November, followed by the stock’s plunge.

In their class action lawsuits, law firms allege that because Kalani purchased the shares with the intention of reselling them immediately the transactions amounted to ‘Pseudo underwriting.’

Reverse Stock Split

In a bid to counter the downward pressure, DryShips Inc. (NASDAQ:DRYS) has resorted to reverse stock splits as it tries to stay afloat. Late last year, the company carried out a 1:15 reverse stock split as it sought to strengthen the value of its share price. The company is also fresh from effecting a 1:7 reverse stock split as it tries to shore up the share price even further.

Extreme dilution is now a point of concern given the amount of DryShips Inc. (NASDAQ:DRYS) shares that are floating in the market. A massive net loss in the recent quarter has also rattled investors fuelling the sell-off wave that now threatens to push the stock to all-time lows. The company has already suspended debt payments arousing concerns over its financial stability.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $DRYS and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Moleculin Biotech Inc (NASDAQ:MBRX) Spikes On MD Anderson Cooper Center Technology Licensing Agreement

Moleculin Biotech Inc (NASDAQ:MBRX)

Moleculin Biotech Inc (NASDAQ:MBRX) traded higher in Tuesday’s trading session after announcing the signing of a new technology license agreement with MD Anderson Copper Center for the Leukemia drug Annamycin. The stock was up by 20.59% to end the day at $2.05 a share. The rally also comes after the company regained compliance with the NASDAQ Listing Requirements.

Moleculin Biotech Inc (NASDAQ:MBRX)
Bar Graph $MBRX

Technology License Agreement

Moleculin Biotech Inc (NASDAQ:MBRX) is a preclinical stage pharmaceutical company specializing in the development of anti-cancer drugs. Annamycin is the company’s lead drug candidate for the treatment of refractory acute myeloid leukemia. The company is also working on two other molecular portfolios, one of which is working on the modulation of hard-to-target tumor cell signaling mechanisms. The other molecule targets the metabolism of tumors.

The technology license agreement with MD Anderson’s Cooper Cancer Center is based on new patent applications that Moleculin is set to file. The patents are in relation to the company’s candidate drug Annamycin.

“In anticipation of beginning our planned clinical trials for Annamycin. One of our priorities has been to ensure the best possible protection for our intellectual property. Some key patent applications had yet to be filed and signing a new license agreement with MD Anderson clears the way for those patents,” said Walter Klemp, Moleculin Biotech Inc (NASDAQ:MBRX) CEO.

Dr. Gill Appointment

Moleculin Biotech Inc (NASDAQ:MBRX) has already appointed Dr. Lidia Gil of Poznan University to act as the lead European Principal Investigator. Dr. Gil is to oversee the planned Phase I/II clinical trial for Annamycin for the treatment of acute myeloid leukemia. The company has also expanded its engagement with CRO to include clinical sites in Poland.

Mayo Clinic WP1066 Partnership

Separately, Moleculin Biotech Inc (NASDAQ:MBRX) has entered into an agreement with Physicians at the Mayo Clinic as part of an effort that seeks to enable additional research on WP1066 molecule as a possible treatment for a rare form of pediatric tumors.

Under the terms of the agreement, the company is to supply Mayo Clinic physicians and scientists with WP1066 for preclinical testing as a novel treatment for Pediatric Diffuse Intrinsic Pontine Gliomas. The primary target with the upcoming trials is cell signaling protein STAT3. Initial studies have shown that WP1066 has the potential to suppress xenograft of human brain tumors transplanted into mice

“This, along with the physician efforts at MD Anderson to secure an IND to study WP1066 for the treatment of adult brain tumors, continues to validate the potential importance of WP1066 in the treatment of difficult tumors,” said Mr. Klemp.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $MBRX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

Is RightsCorp Inc (OTCMKTS:RIHT) on the Rocket Pad?

RightsCorp Inc (OTCMKTS:RIHT)

RightsCorp Inc (OTCMKTS:RIHT) has been posting news that observers believe may propel shares higher in the coming weeks. Currently, RIHT shares are trading well above their 52-week low of $0.01 per share and are within striking distance of their $0.059 52-week high.

RightsCorp Inc (OTCMKTS:RIHT)
Daily Candle Bar for $RIHT

Intellectual property (IP) protection is a huge business. The U.S. Chamber of Commerce Intellectual Property Center has calculated the worth of intellectual property in the United States as being between $5 trillion and $5.5 trillion. Reports suggest that the U.S. economy loses $58 billion each year to copyright infringement including $16 billion in lost revenue to the owners of the IP, and $3 billion in lost tax revenue.

RightsCorp Inc (OTCMKTS:RIHT) provides data and analytics services to owners of copyrighted property such as artists or media firms. The company’s patent-pending digital technology focuses on the infringement of intellectual property rights and ensures that the legal owner’s rights are protected.

RightsCorp Recent History

At the end of February, RightsCorp Inc (OTCMKTS:RIHT) announced Mr. Cecil Bond Kyte as the company’s new Chief Executive Officer. Mr. Christopher Sabec, the Company’s current CEO, will serve as President and continue to spearhead RightsCorp’s intellectual property litigation support and copyright monetization services.

In late June, RightsCorp Inc (OTCMKTS:RIHT) announced that it has been granted an Israeli Patent for the company’s “System to Identify Multiple Copyright Infringements and Collecting Royalties”. Cecil Bond Kyte, CEO of Rightscorp, stated “Online piracy continues to be a major concern worldwide with Israel holding one of the highest rates outside Europe. Last year, it was recorded that approximately 66% watch movies and TV shows online with only 2% using legal direct-view websites. There is a need in Israel for content protection and our technology is an ideal solution for curbing piracy,”.

RightsCorp Can Scale

Clearly, there is positive movement in the ability for RightsCorp to execute on their business model. Their approach is to use their proprietary software to monitor global Peer‐to‐Peer (P2P) file sharing networks. As they monitor the P2P network, the software continuously scans for illegally downloaded digital media.

Once the software finds an illegally downloaded file, it sends an email to the internet service provider (ISP) using the notice format as specified in the Digital Millennium Copyright Act. The notice includes the date, time, song title and other specific technology identifiers to confirm the infringement by the ISP’s customer. Under Federal Copyright Law, once the ISP has actual knowledge of copyright infringements that take place using its network, it has specific duties in relation to the enforcement of the rights of the owners of the material in question. The ISP can legally cut off service to repeat offenders.

Fines for downloading IP without proper authority or permission can reach $150,000 per violation. However, RightsCorp provides these illegal users with a link to remit payment to Rightscorp who will then pay the IP owner a percentage of the collected fee. RightsCorp Inc (OTCMKTS:RIHT) believes this arrangement is economical and mutually beneficial to both the infringer and owner of the IP.

One thing is certain if the company is able to fully execute its business model – it could be a massive cash-flow generating machine.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $RIHT and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant

VOXX International Corp (NASDAQ:VOXX)’s Q1 2018 Sales Growth Offsets Net Loss Concerns

VOXX International Corp (NASDAQ:VOXX)

VOXX International Corp (NASDAQ:VOXX) traded higher in Monday trading session after posting modest top line growth in Q1 2018. A 17.4% increase in Premium Audio sales helped offset investors’ concerns about a (-$3) million loss in the quarter.

$VOXX Daily Candle graph
Candle Graph $VOXX

VOXX International Corp (NASDAQ:VOXX) is a renowned worldwide leader in automotive consumer electronics. The company boasts of an extensive distribution network that includes power retailers, mass merchandisers and 12-volt specialists. Its footprint extends into some of the biggest markets in Europe, Asia, Mexico, and South America.

VOXX Q1 2018 Financial Results

Net sales for the quarter ending May 31, 2017, increased by 3.6% to $159.1 million compared to $155.5 million reported a year ago. Gross margin, however, dropped to 27.5% from 29.7% due to increased promotion activities geared towards clearing inventory levels.

VOXX International Corp (NASDAQ:VOXX) expects gross margins to improve in the second quarter due to new products coming to market and partnerships in the Automotive and Consumer Accessories segments.

Operating expenses dropped to $51.6 million from $53.2 million as of Q1 2017. Net loss attributed to shareholders dropped to ($3) million from (-$4.3) million reported in Q1 2017. Operating net loss, on the other hand, increased to $7.8 million from $7.1 million as of last year.

Hirschmann Car Communication GmbH Sell

During the quarter, the company entered into a definitive agreement with a subsidiary of TE Connectivity Ltd for the sale of Hirschmann Car Communication GmbH and its subsidiaries. The chief Executive Officer, Pat Lavelle, expects the transaction to lead to a greater concentration of the company’s business in North America.

“While Hirschmann has been a great contributor to our business and has the industry-leading technology, we believe the opportunity to sell at the proposed value is a benefit for our shareholders. Upon completion, we will have a clean balance sheet, lower working capital needs and we expect greater cash flow,” said Mr. Lavelle.

Under the terms of the agreement, Voxx International is to receive €148.5 million for the unit. The transaction is subject to regulatory approval among other customary closing conditions.

VOXX International Corp (NASDAQ:VOXX) Shares have been on an impressive run since the start of the year, a trend that could continue especially with the filling of stellar Q1 2018 financial results. The stock is up by more than 80% since the start of the year having tripled in value in the last 12 months.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $VOXX and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

FDA Concerns Over Ocular Therapeutix Inc. (NASDAQ:OCUL) Manufacturing Process

Ocular Therapeutix Inc. (NASDAQ:OCUL)

Shares of Ocular Therapeutix Inc. (NASDAQ:OCUL) plunged 25.05% in Friday’s trading session as investors reacted to concerns raised by the U.S. Food and Drug Administration (FDA) about the company’s manufacturing processes. The resignation of the entire management team also continues to fuel a selloff of the stock – a problem that has since attracted a wave of class action lawsuits.

The biopharmaceutical company bills itself as a leading developer of innovative therapies, using the hydrogel platform technology, for diseases and conditions affecting the eye. The company’s lead candidate product DEXTENZA has already completed its Phase 3 clinical trial as a novel treatment for ocular pain after ophthalmic surgery.

Ocular Therapeutix Inc. (NASDAQ:OCUL) has filed an NDA resubmission for DEXTENZA awaiting the final FDA stance on the product. The company is also evaluating a number of injectable drug delivery depots for back-of-the-eye diseases.

Manufacturing Concerns

Ocular Therapeutix Inc. (NASDAQ:OCUL) appears to be facing serious manufacturing issues after the Food and Drug’s Administration raised concerns in a second 483 statement. The agency, after carrying out an inspection of the company’s manufacturing plant, says it discovered an unknown matter in the company’s candidate product DEXTENZA.

The FDA has since accused the biopharmaceutical company of releasing the product without carrying out a risk assessment on its quality or safety. In one of the observations, the FDA raises concerns about the company’s laboratory controls which it says does not include scientifically sound and appropriate test procedures that can guarantee high-quality products.

The company has also been taken to task for not providing written procedures for production and process controls that can affirm products and drugs have the strength and quality they purport to have.

Management Stance

Many observers believe the management has yet to grasp the magnitude of the matter if remarks by the chief executive officer, Amar Shawnee, during Q1 earnings call is anything to go by.

“We were pleased during the re-inspection that the FDA investigator was able to confirm our corrective action plan from prior observations, and indicated that there was no further follow-up necessary to close out those issues. So I think that’s a strong sign that the manufacturing process has moved forward significantly, and is in a fully developed mode,” said Mr. Shawnee.

Ocular Therapeutix Inc. (NASDAQ:OCUL) maintains that its manufacturing process is fully developed and that the concerns raised can be resolved quickly. However, the company needs to revamp the manufacturing process if its lead product DEXTENZA is to stand a chance of gaining the much needed FDA approval.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $OCUL and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms

Cerulean Pharma Inc (NASDAQ:CERU) Explodes On Dare Bioscience Merger Push

Cerulean Pharma Inc (NASDAQ:CERU)

Shares of Cerulean Pharma Inc (NASDAQ:CERU) more than doubled in market value after Dare Bioscience Chief Executive Officer Sabrina Martucci Johnson requested that shareholders approve a proposed merger. The stock was up by 143.69% in Wednesday’s trading session to end the day at $1.13 a share.

Cerulean Pharma Inc (NASDAQ:CERU) has also sought to accelerate the merger push by asking its shareholders to approve a sale of its dynamics Tumor Targeting Platform technology pursuant to a Novartis Asset Purchase Agreement. The company also wants shareholders to approve a reverse stock split at a ratio ranging from 10:1 to 20:1.

Cerulean Pharma Inc (NASDAQ:CERU) is a clinical stage company that specializes in the development of therapies in areas of oncology and other diseases. The company is currently working with Novartis Institute for Biomedical Research to develop nanoparticle-drug conjugates. Dare Bioscience bills itself as a healthcare company focused on developing and commercializing products for women’s reproductive health. Ovaprene, a novel non-hormonal contraceptive, will become the combined company’s lead candidate drug. The drug seeks to address an unmet need in the $19 billion a year contraception market.

Merger Agreement

On March 19, 2017, Cerulean Pharma Inc (NASDAQ:CERU) entered into a definitive agreement for the purchase Dare Biosciences issued and outstanding capital stock. The fate of the proposed merger rests in the hands of shareholders who are set to vote on the management proposal at the upcoming special meeting on July 19, 2017.

“As the founder and CEO of Dare Bioscience, Inc. (“Dare”), I am excited by the prospect of Dare combining with Cerulean Pharma Inc. (“Cerulean”). [..]. We believe a segment of this market is underserved, which gives us an opportunity to create value for stockholders,” said Mr. Johnson.

Cerulean Pharma Inc (NASDAQ:CERU) shareholders will own between 30% and 49% of the combined company upon the deal closing. The combined company will operate under the name Dare Bioscience Inc. under the leadership of Mr. Johnson as the CEO and Lisa Walters-Hoffert as the Chief Financial Officer. The board of directors will consist of William H. Rastetter, Susan L. Kelley, Roger L. Hawley, Robin J. Steele and Sabrina Martucci Johnson

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $CERU and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

Update on Celsion Corporation (NASDAQ:CLSN) Sends Shares Booming!

Celsion Corporation (NASDAQ:CLSN)

Shares of Lawrenceville, NJ-based Celsion Corporation (NASDAQ:CLSN) are up over 36% in the first hour of trading. Volumes are extraordinarily heavy. CLSN shares closed Monday at $2.02 and gapped up to open this morning at $2.63 on the biotech company’s update regarding its Phase 1b dose escalating clinical trial (the OVATION Study) combining GEN-1, the Company’s IL-12 gene-mediated immunotherapy, with neoadjuvant chemotherapy for the treatment of newly-diagnosed patients with Stage III and IV ovarian cancer followed by interval debulking surgery.

NASDAQ:CLSN
Daily candle bar graph

Founded in 1982, Celsion Corporation develops and directed chemotherapy, DNA-mediated immunotherapy, and RNA based therapy products for the treatment of cancer. Celsion Corporation (NASDAQ:CLSN)’s lead product candidate, ThermoDox, is in Phase 3 clinical trials for primary liver cancer; and under Phase II clinical trials for recurrent chest wall breast cancer. Celsion Corporation (NASDAQ:CLSN) is also developing GEN-1, a DNA-based immunotherapeutic product for the localized treatment of ovarian and brain cancers.

According to Celsion Corporation (NASDAQ:CLSN)’s press release:

  • Of the fourteen patients treated to date, two (2) patients demonstrated a complete response, ten (10) patients demonstrated a partial response and two (2) patients demonstrated stable disease, as measured by RECIST criteria. This translates to a 100% disease control rate (DCR) and an 86% objective response rate (ORR).
  • Of the five patients treated in the highest dose cohort, there was a 100% objective response rate with one (1) complete response and four (4) partial responses.
  • Fourteen patients had successful resections of their tumors, with nine (9) patients (64%) having an R0 resection, which indicates a margin-negative resection in which no gross or microscopic tumor remains in the tumor bed.
  • Of the five patients treated at the highest dose cohort, all five patients (100%) experienced a R0 surgical resection.
  • Of the seven patients who have received GEN-1 treatment over one year ago and are being followed, only one patient’s cancer has progressed after 11.7 months.

Celsion Corporation (NASDAQ:CLSN) is followed by three investment firms. Two analysts rate CLSN shares as a “Strong Buy” and one rates the shares as a “Hold”. Their consensus price target is over $15. CLSN shareholders have had their shares diluted every single year since 2012 when there were 550,000 shares outstanding. By 2016 that number had ballooned to 1.85 million. EPS losses have also been standard since 2012 when the company posted a loss of (-$48.11) per shares. In 2016 that loss shrank to (-$11.90).

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. All information, or data, is provided with no guarantees of accuracy.

Don’t miss out! Stay informed on $CLSN and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Freedom Leaf Inc (OTCMKTS:FRLF) Acquires Green Market Europe

Freedom Leaf Inc (OTCMKTS:FRLF)

Freedom Leaf Inc (OTCMKTS:FRLF), which focuses on marijuana industry mergers and acquisitions, has signed an intent letter of acquisition with Green Market Europe owners. The acquisition will see Freedom Leaf take ownership of an operational greenhouse that measures more than 60,000 square feet. Shares of Freedom Leaf fell by 1.94% to $0.0505 on Thursday.

The greenhouse consists of more than 20,000 square feet equipped with a light deprivation system necessary for the stimulation of flowering throughout the year. An additional 200 acres are also available for outdoor production and thus the capacity for both outdoor and greenhouse production can be scaled up if necessary.

No debt

All the facilities that will be acquired from Green Market Europe are free of debt. The acquisition will include all assets belonging to Green Market Europe such as purchase orders that are more than $450,000, production agreements with local farmers, intellectual property, greenhouse equipment, leasehold improvements, and land leases.

The chief executive officer and co-founder of Freedom Leaf Inc (OTCMKTS:FRLF), Clifford Perry, said the acquisition would turn the company into a major player in the industry.

“With this transformative acquisition Freedom Leaf has become a major participant not only in the booming CBD (cannabidiol) industry, but in many other aspects of the global hemp industry,” said Perry.

Some of the development projects that Freedom Leaf Inc (OTCMKTS:FRLF) is engaged in includes rare cannabinoids research. Hemp seed oil, making furniture and footwear from fabric derived from hemp, phytocannabinoid oil, and CBD drinks.

Spanish Mediterranean coast

Miguel Hernandez University, an institution which possesses extensive facilities for research and development, is collaborating with Green Market Europe in fertilizer testing projects, LED growing systems, and genetic breeding.

Operations are in the Callosa de Segura area of Alicante, Spain and close to Elche city on the southeastern Mediterranean coast. Due to the favorable and moderate climate, multiple crops can be produced every year.

Natural Hemp was started in 2013 by Vicente Javaloyes Martinez and Luis Miguel Santos is the predecessor of Green Market Europe.

One of the agreements contained in the intent letter is that the current management of Green Market Europe will be retained. The acquisition will consist of a common stock transaction of 4,800,000 shares belonging to Freedom Leaf as well as 20,000 euros in cash. Shareholders of Green Market Europe will get to keep half of the profits that have been generated. The flagship publication of Freedom Leaf Inc (OTCMKTS:FRLF) is Freedom Leaf Magazine.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $FRLF and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

Shares Rocket for CHF Solutions, Inc. (NASDAQ:CHFS)

CHF Solutions, Inc. (NASDAQ:CHFS) – formerly Sunshine Heart Inc.

CHF Solutions, Inc. (NASDAQ:CHFS) closed Thursday at $1.08 and gapped up to open at $1.29 before hitting their inter-day high of $1.65 – a gain of over 40%. Volumes are extraordinarily heavy. The 50-day, daily trading average is listed at just over 550,000 shares but already over 13.8 million shares of CHFS have traded hands. The market is responding to a news release by CHF Solutions that researchers in the Stanford University School of Medicine’s Department of Pediatrics have received FDA Investigational Device Exemption (IDE) approval to conduct a clinical study to evaluate the safety and effectiveness of CHF Solutions’ Aquadex FlexFlow Aquapheresis System for diuretic-resistant fluid overload in children with acute decompensated heart failure. Patients suffering from this condition have typically failed diuretic therapy and require hospitalization.

CHF Solutions, Inc. (NASDAQ:CHFS) was formerly known as Sunshine Heart Inc. and is based out of Eden Prairie, MN. In April, Sunshine Heart Inc. (NASDAQ:SSH) shares plummeted on news of the company’s pricing regarding a public share offering. Dilution has been a long-time concern for shareholders as the dilution adjusted share price in 2014 is calculated at over $200. While the nano-cap medical device firm has a market-cap under $15 million, for FY2016 the company reported a net loss applicable to shareholders of over $15 million – in 215 that loss was a larger loss of over $26 million.

Despite these performances, the sole investment firm, Cowen & Company, that follows CHF Solutions, Inc. (NASDAQ:CHFS) rates CHFS shares as a “Strong Buy” with a price target of $6.125.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $CHFS and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Marc worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.

MOLORI ENERGY INC (OTCMKTS:MOLOF) in Good Company

MOLORI ENERGY INC COM NPV (OTCMKTS:MOLOF)

One of the world’s greatest sayings is “follow the money”. This is particularly true of businesses as their vision of the future dictates how and when they allocate their resources. Businesses like the highest reward for the lowest risk so it is logical that they spend where they can get the best returns. In today’s oil market, the topic that continues to dominate is the new technology available to North America drillers and friendlier industry regulations – both of which are highly prized assets by the oil and gas sector. This combination is producing an environment where profits are now being generated from assets that were once believed to be depleted or too costly to operate. Mothballed, or previously operationally expensive, assets are now being brought back to life. Oilfields that were once considered too costly, or too difficult, to extract are now getting a second look. A great example of this is the Red Cave formation in the Texas panhandle. Not only are established players returning, but at least one firm we have highlighted in these pages before has an interesting play currently in process.

Red Cave History

The Red Cave formation has an interesting history. Most drillers believe that “Red Beds” do not produce both oil and gas, however Red Cave does. The formation has produced over 70 billion cubic feet of natural gas since drilling there began back in 1919. In 1960, the Red Cave formation received a separate field designation from the Texas Railroad Commission. Drillers have been active here ever since and are to this day, as you can see in the satellite image from Google.

MOLORI ENERGY INC COM NPV (OTCMKTS:MOLOF).
Red Cave Wells

Drillers Returning

For a while many believed that the Red Cave formation was either depleted or too costly to drill at a profit. That now appears to be “old thinking”. Reports show that money is returning to the Red Cave formation. Long time player Masterson West LLC, through their affiliate Adams Affiliates Inc., has 8,000 net acres. Masterson is now joining forces with Tulsa, OK-based Empire Petroleum Corp. to attack the sands play. The newly formed entity is named Masterson West II and it will be well capitalized. Empire will be contributing 40 million of its common shares and $9-$18 million for a stake that could range from 25-50%. Masterson West LLC will be contributing the leaseholds. Masterson West believes they have identified 380 locations to develop on wells spaced five to ten acres apart, with 200 proved undeveloped drilling locations. They estimate each well will cost them $250,000 and they are planning on drilling forty wells for the next few years.

Molori Energy Inc (OTCMKTS:MOLOF) Offers Pure Play

So we know that serious money is coming back to the Red Cave formation. How to take advantage? MOLORI ENERGY INC COM NPV (OTCMKTS:MOLOF) owns outright, or has optioned, over 4,000 acres with exposure to the Red Cave formation. Their largest lease is named “Mother Goose” while another lease is named “Thompson”. Joel Dumaresq, Molori’s CEO, is expecting two wells to be completed on the Mother Goose and Thompson leases by the end of this month. Molori’s bankers, Casimir Capital, have sourced over $100 million in investments for oil and gas producers with an asset profile similar to Molori Energy. At the last shareholder conference call, Casimir claimed that most of the wells drilled in this area produce around 50 barrels per day with a payback period of six months to a year. A review of the Texas Railroad Commission records seems to indicate that its likely Casimir could be referencing the Red Cave wells owned by Adams Affiliates, Inc. This could explain the massive investment that Empire Petroleum is willing to make.

If technology and a new regulatory environment will return the Red Cave formation to its old glory days, then it could be wise to forgo investment in some of the larger players and instead consider the Red Cave pure play that is offered by MOLORI ENERGY INC COM NPV (OTCMKTS:MOLOF).

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

Don’t miss out! Stay informed on $MOLOF and receive breaking news on other hot stocks by signing up for our free newsletter!

About the author: Marc has a degree in economics and a MSc. in Finance. Over his 20-year career, Marc has worked for global investment firms in Europe and the United States as an analyst, fund manager, and consultant.