Your Best Shot At a 10-Bagger

The following is a direct quote: "if they cant tell you what will go up 100% in a few days then motley fool are worthless and they suck at picking stocks."

I received that comment on one of my recent columns. Grammar issues aside, this type of get-rich-quick mentality scares the heck out of me.

Now, don't get me wrong. I enjoy stalking monster returns. Heck, I'll even reveal your best shot at snaring a 10-bagger a little later in this piece. But first, let me warn you against an investing mistake that leads to many a zero-bagger.

The warning
My worst investing decisions have involved three common elements:

  • The allure of great upside.
  • The "need" to act quickly.
  • The lack of proper due diligence.

My visions of huge, unrealistic profits led to hasty decision-making, which led to losses. In other words, almost every time I've tried to swing out of my shoes to hit a home run, I've struck out.

To defend yourself against the kind of greed that leads to grief, put investing returns in perspective.

My critic earlier talked about 100% returns in just a few days. Let's think through that for a minute. If you started with $10,000 and made 100% gains every week, you'd be the richest person in the world -- surpassing Bill Gates' $40 billion -- in far less than six months.

I'll go one step further. Perhaps you're thinking of the huge gains we've had over the course of the last year. If you timed it right, you could have made more than 100% on Halliburton (NYSE: HAL  ) and Chesapeake Energy (NYSE: CHK  ) , more than 150% on General Electric (NYSE: GE  ) and Alcoa (NYSE: AA  ) , or more than 1,500% on Human Genome Sciences (Nasdaq: HGSI  ) .

Although these are real returns some investors have achieved, they're not the sort of realistic earnings anyone can expect over the long term. You can't extrapolate Usain Bolt's 100-meter times to conclude that he could run a marathon in 70 minutes. Similarly, even the best investors can't generate 100% returns year after year.

What's the upper limit of reasonable?
Peter Lynch is recognized as one of the greatest investors of all time. He ran his Fidelity Magellan Fund from 1977 to 1990 -- less than 15 years, during one hell of a bull market. Even in those perfect conditions, he "only" averaged 29% annual returns.

If you're wondering about Warren Buffett, his returns are lower than Lynch's. If you got in on his company, Berkshire Hathaway, in 1965, you'd have generated average annual returns in the neighborhood of 20%.

Now, because of the power of compounding for 45 years, those returns are tremendous. A $10,000 investment back then would leave you a millionaire many times over.

Believing you can do much better than the 20% to 30% long-term annual returns of Lynch and Buffett is almost surely a road to overconfidence and failure. Doing half of what they did would make you a very, very rich investor.

Your best shot at a 10-bagger
Now that we're grounded in reality, let's talk about what it takes to snag a 10-bagger in 10 years, while limiting your risk.

For a stock to be worth 10 times its buy-in price in 10 years requires a 26% annual return. As the returns of Lynch and Buffett attest, that's huge! 

Going after that kind of return, even in an individual stock, isn't for everyone. You have to have a mighty risk tolerance. That's why most people are best served allocating among index funds or ETFs, and holding for the long haul. In fact, I believe everyone this side of Buffett and Lynch should index at the core of their portfolios.

But for those of us who want to pick some individual stocks and go after a 10-bagger or two, small-cap stocks (i.e., stocks with market caps of $2 billion or less) are our best shot.

Large-cap stocks like Cisco (Nasdaq: CSCO  ) ($139 billion market cap) and Pfizer (NYSE: PFE  ) ($142 billion market cap) simply don't have the room to grow that their $2-billion-and-under brethren do. Now, large caps have their place in your portfolio, but that place isn't in the area dedicated to the 10-bagger.

To maximize your chances of achieving a 10-bagger in 10 years without throwing Hail Marys, focus on smaller companies that have:

  • Strong balance sheets.
  • Strong cash flows.
  • Strong growth prospects.

Our small-cap experts at Hidden Gems have recommended Dynamic Materials, a maker of explosion-welded clad metal plates, to their members. This stock is a good place to start your 10-bagger research. To see the Hidden Gems team's entire write-up on Dynamic Materials, and the rest of their recommendations, click here for a free 30-day trial.

Anand Chokkavelu owns shares of Pfizer and Halliburton. He made a 100% return in just two days once: The sweater didn't fit, and he got store credit. Chesapeake Energy and Pfizer are Motley Fool Inside Value recommendations. The Fool owns shares of Chesapeake Energy. The Fool has a disclosure policy.


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  • Report this Comment On February 18, 2010, at 2:09 PM, millsbob wrote:

    there are no grammatical issues in the quoted sentence. the plural with regard to an entity is common British usage, and the lack of punctuation is standard netspeak.

    the concepts espoused Are idiotic, but not the grammar.

  • Report this Comment On February 18, 2010, at 3:55 PM, emajed wrote:

    10 bagger==you did'nt note rax-i bought at $ 5.53 on 03/04/09- long term gain will soon be here-sell or hold?????.

  • Report this Comment On February 18, 2010, at 4:47 PM, sheltonclan wrote:

    Dear millsbob,

    Just because it is "standard netspeak" does not mean that it fails to give every true lover of the English language a queasy stomach. There are issues with it, but I will grant you that perhaps they are MY issues (and Mr. Chokkavelu's, evidently) to deal with.

    However, at least we all agree that the investing concepts the poor deluded soul espouses are inherently bogus.

  • Report this Comment On February 18, 2010, at 5:17 PM, nicholas909 wrote:

    cant - that's the grammar issue

  • Report this Comment On February 18, 2010, at 5:27 PM, im4q wrote:

    I suspect one needs to study stocks much harder to get 4 baggers during the next 12 months than the last 12 months where even some large caps did that well, like dow chemical.

  • Report this Comment On February 18, 2010, at 5:36 PM, NotJesseL wrote:

    As an investor, speculator, trader that pursues 10 baggers with regularity, I am totally in agreement with this article. The best I ever did was a double on 10,000 in options in one day. But over time, my return on option speculation and trading has been fairly slim. I did a 4 bagger on Petsmart.

    I think that was the best one, and it took about 4 years. I hung on to SCSS from under $1 to where it is now at $7-8, but that doesn't count because I bought it at about 9.

    But, really, you do *N*O*T* want to put all your eggs in one basket that you hope to be a 10 bagger, because more than likely, it will be a 0 bagger. If you have more risk, you might get more returns in a fair world, but A,) the market is not really fair, and B.) risk is inherently hard to evaluate.

    I still think, if you want to pursue these speculative things, you need to allocate a smallish percentage of your working capital, under 20% and probably under 10% and then split that up into 5 or more pots so that if any of the trades is a 0 bagger, you still have some other trades left that will hopefully make up for it.

    Look at it this way, if you're dead, you can't play in the colliseum anymore.

  • Report this Comment On February 18, 2010, at 6:04 PM, Doccus wrote:

    wow.. just checked my fool email and saw this article.and your lead in.. somebody really said that in a comment?..

    I bet the fella that said that is poorer than me... at least i'm poor only because i have had no stake, (my virtual portfolio is, however, a smash! and in LARGE PART due to the wisdom of the FOOL here!)

    I don't really need money.. but I like to play...

    You guys USUALLY have bang on perspectives.. but not always, i might add ;-( ......most of the time tho.

    This is i think one of the good ones.

    kinda like......

    after all YOU MUST read this comment NOW. or else the OPPORTUNITY to have AMAZING UNHEARD OF intellectual profits will be LOST...

    Dont Waste your time CHECKING what i've said.. Theres NO TIME TO LOSE.

    Hyuk hyuk...

    sound familiar?

    Cheers from Doc

  • Report this Comment On February 18, 2010, at 6:31 PM, Latinus wrote:

    "standard netspeak" be dammed;

  • Report this Comment On February 18, 2010, at 6:34 PM, Latinus wrote:

    My post disappeared. Why?

  • Report this Comment On February 18, 2010, at 6:35 PM, Latinus wrote:

    No, now it is on. It seems a small amount of patience is required in this neighborhood.

  • Report this Comment On February 18, 2010, at 7:22 PM, PositiveMojo wrote:

    Why is there such animosity toward folks who do anything but trade long? I would describe myself, not as a day trader, but as a momentum trader.

    My return for the past month is around 6%. Between March and October of '09 it was 96.4% - but that was a bull market and the old saying "Even a blind dog finds a bone every once in a while".

    I work very hard to make the best decisions I can and record my assumptions when I make a buy or sell - sometimes even a hold. When I blow it and lose money - which is rare, I go back and review the assumptions and see where I went wrong and how I can make better decisions. The whole process takes 30-60 min. every day an hour before the market closes.

    I love being a "Fool" because nobody does any better at analyzing companies and my #2 rule is to "only buy well managed companies" - like Ford - Mulally rules! My #1 rule is "don't lose money!". I'll sit at a cash position if I think the fishing isn't good - which is where I was during a lot of the past month.

    Anyway - I'm still learning but there are other strategies other than being long.

  • Report this Comment On February 18, 2010, at 7:44 PM, TMFEditorsDesk wrote:

    @ the grammarians in the audience,

    Here's the entire comment I was referring to in the article...you can make the call on the grammar...

    if they cant tell you what will go up 100% in a few days then motley fool are worthless and they suck at picking stocks. One of their articles i read said dosnt matter how much you buy it for all that matters is holding it forever while it goes down and eventually over the extreme long term (45 years) it will go up 12%.

    @Latinus,

    Yeah, sometimes the comments take a while to show up. Apologies for that...it's noted for future site improvements.

    -Anand (TMFBomb)

  • Report this Comment On February 18, 2010, at 8:37 PM, khanazul wrote:

    I know the next stock that's going to be a 10-bagger.

    But I'm not going to tell you.

    ....

    ok, here's a hint:

    It's not Google.

  • Report this Comment On February 18, 2010, at 9:26 PM, slash32is4 wrote:

    egmi?????

  • Report this Comment On February 18, 2010, at 9:58 PM, akaluna wrote:

    Well,not much mention about dividends in this thread. I think that any long term investment strategy should be looking at solid companies that have a strong and long history of paying out dividends. Ya gotta luv that EPD

  • Report this Comment On February 19, 2010, at 12:07 AM, WTHAmIDoing wrote:

    Some fools don't have the luxury of being "traders", be it due to company policy, mandatory hold durations, obligated high commission rates or taxation by multiple governments. I'd like to this puts some of us into the "investors" category because "buy and hold" is really our only option. I'm sure glad for some of the fool advice I've picked up here though as TMF has shown me my silver lining...

    Because of the above restrictions I need to do a lot of research on the stocks I buy. When I buy I feel secure in the decision therefore whenever they've seen a downturn I've had the confidence to just grin and buy more. Granted I'm no Buffet but I've been happy with my returns so far; especially given that 80% of my investments are small caps.

  • Report this Comment On February 19, 2010, at 2:18 AM, anuvaka wrote:

    TMF Shannon Zimmerman made 100% return in one day.

    KTII as recommended in the RMM portfolio about a year before. When they were purchased, the return was 97 to 103%

    Ok, now it is only 81%, but if you sold early it was 100.

    Can you do it? Can you predict it?

    Depends on your crystal ball. But Shannon DID.

    jC

  • Report this Comment On February 19, 2010, at 5:22 AM, jpaa74 wrote:

    It would be interesting to see a comparison between Peter Lynch and Warren Buffett's returns between the 13 year period that Lynch managed Magellan at Fidelity, to see who was the better capital allocator during this bull market period.

    On a side note, I would like to brag a bit about getting a 35 bagger in less than 1 year. The stock was Select Comfort (scss), which is a previous hidden gem recommendation, before the housing and credit crisis. I bought it last March at 0.20 and it's now trading at over 7 dollars a share.

    Oh, I forgot to mention though that in my stupidity, I sent it as a LMT order at 0.20, so only 100 out of my 10,000 share order got filled... Lesson learned though: I'm never putting any limit orders to save pennies...

  • Report this Comment On February 19, 2010, at 9:09 AM, maplewoodman wrote:

    I'm not sure if they want "clad metal plates" "explosion welded", "to their members"

  • Report this Comment On February 19, 2010, at 1:27 PM, EarlBerger wrote:

    The important objective is not the 10-bagger stock but the 10-bagger portfolio, or 8-bagger, or 5-bagger. There is a portfolio in Toronto run by two cousins and called Contra the Heard which recommends (and buys on their own account) badly beaten up and wrecks of stocks which in their view have a future (e.g. MOT); I am not recommending it, I am just telling you the kind of stuff they look at. Depending when you buy them, and you might have to wait a year or two before buying while the company completes its downward spiral, you can sometimes make a 5 or 8 bagger over five or six years. But, it takes patience and a willingness to see stocks dwindle almost to disappearance before buying, e.g. Anly, and then wait around for another year or two until the company gets its act together. If you can do that you can do well. Their portfolio was as badly hammered as everyone else's two years ago, but until the crash they were doing about 25% to 30% a year - not bad but not a 10 bagger over five years.

  • Report this Comment On February 19, 2010, at 1:32 PM, EarlBerger wrote:

    And, I forgot to mention, the cousins' investment firm takes on limited number of subscribers and are usually fully subscribed - so my previous note was not a plug for them but only to emphasize how difficult it is to get either a 10-bagger stock or portfolio.

  • Report this Comment On February 19, 2010, at 4:31 PM, TMFEditorsDesk wrote:

    @snowballinvestor,

    You'd have to factor in how much money each was managing at the time. When Buffett was first starting out, his returns were utterly ridiculous because he wasn't constrained by portfolio size. I wrote about it a bit in this article:

    http://www.fool.com/investing/small-cap/2009/12/24/the-home-...

    But Buffett's returns were monstrous during Lynch's heyday as well...you can see the book value returns each year in his annual shareholder letter:

    http://www.berkshirehathaway.com/letters/2008ltr.pdf

    -Anand (TMFBomb)

  • Report this Comment On February 19, 2010, at 5:21 PM, Bamafan68 wrote:

    I just gave this article a +1, partially for the 100% return footnote. I appreciated the chuckle.

  • Report this Comment On February 19, 2010, at 7:19 PM, automaticaev wrote:

    Really 29% in pro? I haven't felt this dissapointed in a while. Havent their been people who got rich from only buying stocks off of 10k? What about all the day traders that dont have a real job? They would need to already have 100k to start and make the greatest returns in the world of 29% to be able to do that? So most day traders have 1 million dollars and just make 5% a year i doubt that. Its not that you dont say what stock will go up 100% in a few days every week. You have never before said it even once. Like if a 5 dollar stock gets bought out for 8$ why you dont say anything till its bid up to $7.98? You should say buy it fast...

  • Report this Comment On February 19, 2010, at 7:22 PM, automaticaev wrote:

    that was my comment.

  • Report this Comment On February 19, 2010, at 7:28 PM, automaticaev wrote:

    why cant you just find every stock that gets bought out and buy it right away thus always making profit?

  • Report this Comment On February 19, 2010, at 7:30 PM, automaticaev wrote:

    also after you have made so much money its not the same because you have too much to lose. To make a bet for 1 million dollars to someone who started with 10k would have to be insaine i would think. You would want to protect your gains at that point.

  • Report this Comment On February 19, 2010, at 7:30 PM, automaticaev wrote:

    because you could now lose 100k 500k before you can lose 1k 3k not too much...

  • Report this Comment On February 19, 2010, at 7:34 PM, automaticaev wrote:

    like you guys did reccomend the Harvest Energy trust units like 6 months before it was bought out for like what was it 9$ a share. So it opened at like what 6$ But on the same day you dont say buy this immediatly before everyone else buys it.

  • Report this Comment On February 19, 2010, at 7:36 PM, automaticaev wrote:

    also get rich quick scares you but isn't that actually possible to do with options? You actually can get rich fast but it has risk.

  • Report this Comment On February 19, 2010, at 9:16 PM, automaticaev wrote:

    even if you started with 10k then 10k is probably a fortune to them. So why would they make a risky trade with 100k that can lose a fortune

  • Report this Comment On February 20, 2010, at 1:03 PM, TMFEditorsDesk wrote:

    @automaticaev,

    Let me address your main questions:

    Why can't we buy a company's stock as soon as a buyout is announced (assuming its price is below the buyout price)? This is called merger arbitrage. It can work, but the risk is that the merger is called off and the stock then sinks below where we bought it at (most likely, after we've all read the news of the buyout, the stock would have already shot up).

    Don't options allow for very high short-term gains? Yes, options can certainly juice returns, but they are also very, very risky and can lead to total losses. It's not a perfect analogy, but I think of it like putting all your money down on a roulette spin...sure, the chance for a huge gain is there if Red 16 pops up, but you can also lose it all. I personally don't recommend options for the vast majority of investors. One mistake can ruin years of careful saving and investing. I am a professional and I have yet to use them myself.

    As for daytraders, I don't believe there's a daytrading Warren Buffett out there. I believe that long-term investing is the best way to invest. That's why I'm at the Motley Fool.

    -Anand (TMFBomb)

  • Report this Comment On February 22, 2010, at 5:01 PM, SavageHeart wrote:

    No, let's face it. While 2010 could continue to be rocky, it can't get much worse than this, especially if Obama and the Democrats work some magic with a smoke and mirrors act to get people thinking positively.

    Right now everyone is thinking negatively, and none of it is helped by our panicky government and its talk of economic meltdowns, food riots, martial law and other comments to freak out the citizenry.

    Personally, I think the smart investor needs to get back into the game by looking for the rare, but obtainable 10-bagger -- as it is affectionately called. Yes, this is that normally rare stock that goes up by a factor of 10 within a short period of time.

    ---------------------------

    www.topinvestingtips.com

  • Report this Comment On February 22, 2010, at 5:02 PM, SavageHeart wrote:

    No, let's face it. While 2010 could continue to be rocky, it can't get much worse than this, especially if Obama and the Democrats work some magic with a smoke and mirrors act to get people thinking positively.

    Right now everyone is thinking negatively, and none of it is helped by our panicky government and its talk of economic meltdowns, food riots, martial law and other comments to freak out the citizenry.

    Personally, I think the smart investor needs to get back into the game by looking for the rare, but obtainable 10-bagger -- as it is affectionately called. Yes, this is that normally rare stock that goes up by a factor of 10 within a short period of time.

    ---------------------------

    www.topinvestingtips.com

  • Report this Comment On February 23, 2010, at 1:13 AM, automaticaev wrote:

    Wow if you think options is throwing money away then you dont know the first thing about investing.

  • Report this Comment On February 23, 2010, at 7:10 PM, LodestarX2 wrote:

    Forget the grammar, I'm more concerned about this math:

    "He made a 100% return in just two days once: The sweater didn't fit, and he got store credit."

    If you paid for it, and got your money back, that's a 0% return.

    If you got it as a gift, you paid $0 for it, and you can't divide by 0 to get a %.

  • Report this Comment On February 23, 2010, at 10:19 PM, TMFEditorsDesk wrote:

    @LodestarX2,

    It was a play on words, not a financial calculation...the sweater was 100% returned. Less math, more chuckling!

    -Anand (TMFBomb)

  • Report this Comment On February 24, 2010, at 5:25 PM, a2gsg wrote:

    my best shot at 10-bagger, of which i am currently long is GSAT. here's my case in brief:

    just on the French Export Crecit Agency (COFACE) financing alone finalized last july GSAT is worth ~$5/share.

    if you add in the Book/Fair Value of the all the assets, i.e. the value of the 30 Mhz WORLD WIDE LICENSED (in 160 countries) HARMONIZED spectrum, the gateways owned around the world, the remnant satellite constellation, the technological developments such as the SPOT SATELLITE MESSENGER ( http://findmespot.com ), etc, money raised, loans arranged and guaranteed, SOCC/GOCC, supply agreements arranged, market testing so far, existing customer base (largest in the world), employment agreements, and all the rest GSAT should be trading in the $20 range....

    but this illustrious industry segment is just soooooooooo out of favor at the moment and still has a HUGE over hang (I call it malaria) from its and iridiums and ICO's previous (chapter 11'd) incarnations, it's why it trades at what it dose and is a significant steal at this price -- if you can just let the shares sit for the next 12 to 18 to 24 as GSAT's FULLY FINANCED (unlike IRDM) next generation constellation gets launched and becomes operational and let Mr. Market take recognition you'll have a multi-multi bagger on hand.

    btw, for a fair read on GSAT check out the equity analysis at http://devilcapital.com/investments/GSAT as well at the latest investor presentation under [Investor Relations] at http://www.globalstar.com/en/ -- oh, and don't miss out noticing the recent share transactions at http://www.mffais.com/gsat

  • Report this Comment On February 25, 2010, at 4:33 AM, LyonFund wrote:

    HANS

  • Report this Comment On February 26, 2010, at 4:06 PM, rru2s wrote:

    I had 220% in 6 weeks on NEP last fall, but it's dropped since I was still a long.

    Now NEP has been ordered by the SEC to resubmit ALL of its 2008 earnings and 2009 quarterlies because of 3 major important issues, stock warrants being listed as equities instead of liabilities the major one.

    So I dropped NEP in a hurry and was left with about 60% gain, but I'd rather be safe than sorry. There are a bunch of longs in it that have pushed it's price back up 5% from the 10% sudden drop, but at least the bottom didn't fall out. The longs are fooling themselves -- due diligence is not served when 2 years of earnings are flapping in the wind. I won't hang onto a stock waiting for the corrected earnings when several quarters of EPS might suddenly go from positive to very negative when the SEC filings are re-released.

  • Report this Comment On February 27, 2010, at 7:05 AM, Friendlysurfer wrote:

    Dear Anand,

    I actually love the guys aiming at 100% in no time. There always has to be someone underperforming the market if you are outperforming.... and those are the guys. So better warmly welcome them to do their piece of work. I thank them every day.

    Best Regards,

    Friendly

  • Report this Comment On February 27, 2010, at 7:34 AM, wuff3t wrote:

    TMFEditorsDesk - well done for understanding automaticaev's comments, let alone addressing them...

  • Report this Comment On February 27, 2010, at 9:36 AM, TMFEditorsDesk wrote:

    @Friendlysurfer,

    Good point...When you're playing a zero sum game, it's generally wise to invite those likely to make negative sums. :)

    -Anand (TMFBomb)

  • Report this Comment On February 27, 2010, at 8:12 PM, rmtonkavich wrote:

    There seems to be a never ending supply of News Letters touting the Next Big Move that you can't Miss. Some of them border on being almost evangelical and being able to have the solution at hand to the Global Financial Crisis. One that I recently read leaped all kinds of praise on herself for being Right a 100 Percent of the time. Shouldn't everybody start dropping what they are doing and start following her? I mean 100 Percent Correct in Stock Picking! Come on,shouldn't we join the band wagons. The real potential for Loss here is paying for these services and not being able to achieve the results that they claim and then continuing the money drain in trying to follow to many of them at the same time.

    Investing is a Life Style that involves looking and examining your objectives and achievements. Personally I think finding one or two good News Letters and following their advice with commitment will hopefully bring good results. Those results are going to be different for each investor. But we need to be self examining and make sure that we are achieving our goals and not just blindly following someone.

    There is enough information available that really with a little hard work, even the average investor can post good results and positive portfolio Gain. Remember, Diversification.

  • Report this Comment On February 28, 2010, at 10:57 AM, futuretrade wrote:

    I have a question The DJIA has had multiple 10% declines over the last 20 years, I think I read somewhere that the average is 1 per year for the last 10 years.

    We cannot predict when these will happen, obviously, would it be feasible to buy puts on a major Index one year into the future at 10% below the current price as a hedge? And if the price drops more than 10% to cash in the put and buy more of whatever stocks you own at the new prices?

    Is this feasible or are the option premiums on Indexes too high?

  • Report this Comment On February 28, 2010, at 10:57 AM, futuretrade wrote:

    I have a question The DJIA has had multiple 10% declines over the last 20 years, I think I read somewhere that the average is 1 per year for the last 10 years.

    We cannot predict when these will happen, obviously, would it be feasible to buy puts on a major Index one year into the future at 10% below the current price as a hedge? And if the price drops more than 10% to cash in the put and buy more of whatever stocks you own at the new prices?

    Is this feasible or are the option premiums on Indexes too high?

  • Report this Comment On March 01, 2010, at 8:25 PM, TMFEditorsDesk wrote:

    @futuretrade,

    I don't trade options myself and generally discourage average investors from doing so either.

    Hence, someone else can probably answer this better than I can. However, as you've guessed, the cost to carry a permanent hedge is likely quite steep. Also, figuring out when to close out your position is hard.

    -Anand (TMFBomb)

  • Report this Comment On March 15, 2010, at 3:50 PM, Morpheus2010 wrote:

    Attn. Anand Chokkavelu:

    This article made me think. Last week I signed up for "Spec. Opps." This program costs me $1,499 while Stock Advisor cost me only $79.

    Stock Advisor has given some pretty good stocks. One that has gone up over 50% in one month.

    All I have to invest is $8,000. Do you think that a $1,499 investment in "Spec Opps" is worth the $ or am I just getting greedy trying to make tons of Ca$h fast?

  • Report this Comment On May 06, 2012, at 12:34 PM, CoreAndExplore wrote:

    Check out CMG, SBUX, and AAPL since the march lows of 2009: 729%, 564%, and 562% gains respectively. What's interesting about this is that before the run-up, CMG was the only small-cap; SBUX was a mid-cap and AAPL obviously a large-cap stock. What does this tell you? You don't necessarily have to relegate yourself to small-caps to make massive profits. Just consider the incredible run IBM had from the 50's to the 80's - it was one of the stalwarts of the computer industry even then, sporting a much larger capitalization than any other tech company, even at the beginning of the period, and yet its returns were incredible.

  • Report this Comment On March 01, 2013, at 8:05 PM, chocolatecracker wrote:

    Intellect Neurosciences Issues Letter to Shareholders

    NEW YORK, Feb 13, 2013 (GLOBE NEWSWIRE via COMTEX) -- Intellect Neurosciences, Inc. (OTCBB:ILNS), a biopharmaceutical company engaged in the discovery and development of treatments for the prevention and treatment of neurodegenerative diseases, issued the following Letter to Shareholders from Dr. Daniel Chain, Chairman and CEO.

    Dear Shareholder,

    I am quite pleased by the progress we made in 2012 despite various challenging setbacks we experienced during the year. We put the funds we received from ViroPharma to good use, on the one hand by significantly reducing our liabilities and on the other with the following achievements:

    -- We filed several new patent applications to protect our product candidates and technology platforms;

    -- We in-licensed new technologies, including two antibodies that target early neurotoxic forms of tau protein, which have application for therapeutic and diagnostic uses;

    -- We initiated an important collaboration with the University of California, Irvine's Dr. Frank LaFerla, Chancellor's Professor and Chair, Neurobiology and Behavior School of Biological Sciences, Director, Institute for Memory Impairments and Neurological Disorders, as well as Dr. Kim Green and his team;

    -- We appointed world-renowned antibody drug developer, Dr. Dan Shochat, as Consultant, VP Development;

    -- We developed a detailed road map and signed a Letter of Intent with Lonza regarding the manufacture of our antibody drug conjugate, CONJUMAB-A, which is being developed for age-related macular degeneration.

    -- We signed a Research Service Agreement with iNovacia to evaluate lead compounds for the CONJUMAB-A program;

    -- We initiated testing of our TauC3 monoclonal antibody in an Alzheimer's preclinical model; and

    -- We mounted a strong appeal against the patent challenge we face in Europe from Pfizer & Johnson & Johnson.

    We also initiated a lawsuit against one of our global pharmaceutical licensees to seek remedy for its failure to pay the $2 million milestone that was due upon the May 8, 2012 issuance of our ANTISENILIN patent by the USPTO. Based on discussions with our counsel following the recent motions and submissions by the defendants, our ability to prevail remains unabated.

    In 2013 we plan to move forward aggressively with our CONJUMAB and tau immunotherapy programs. These activities are expected to generate data that will increase the enterprise value of each program and attract new partnership opportunities that could result in substantial license revenues. This strategy is based on recent discussions with global pharmaceutical companies, several of which have expressed high levels of interest in these preclinical programs.

    An important event to anticipate in 2013 is the initiation of Phase 2 clinical trials with OX1 (VP 20629) in patients with Friedreich's Ataxia ("FA"), which we expect to occur mid-year based on statements Vincent Milano, CEO of ViroPharma, made during his presentation at the JP Morgan Health Care Conference in January. ViroPharma intends to file for Orphan Drug Designation upon review of the Phase 2 proof-of-concept data. February 28 marks the sixth international Rare Disease Day in 24 European countries. We are pleased ViroPharma is collaborating with FARA (Friedreich's Ataxia Research Alliance) to raise awareness about FA and Rare Disease through the media. Intellect helped forge the alliance between ViroPharma and FARA and we are proud of our role in developing OX1 and highlighting its potential for FA.

    Pipeline activities:

    CONJUMAB:

    I am excited about the potential of our CONJUMAB antibody drug conjugate platform and the therapeutic potential of the lead program, CONJUMAB-A, for treatment of age-related macular degeneration (AMD). CONJUMAB is designed to empower chaperone-like monoclonal antibodies with cytoprotective properties for treatment of various forms of amyloidosis and other types of proteinopathies in which irregular accumulation of abnormally folded proteins causes oxidative stress and inflammation, resulting in irreversible damage and death of cells. This relates to many different diseases, including diseases of the eye (AMD, glaucoma, diabetic retinopathy), brain diseases (Alzheimer's disease, Parkinson's disease (PD), Huntington's disease, motor neuron disease (ALS) and Creutzfeld Jacob disease (CJD)) and peripheral diseases (multiple myeloma, systemic amyloidosis, familial serum amyloid neuropathies and isolated atrial amyloidosis). Numerous proteins, including, amyloid beta (Aβ), tau protein, huntingtin protein, superoxide dismutase, prion and transthryetin, become abnormally folded, making them potential targets for the CONJUMAB approach.

    Our lead program, CONJUMAB-A, offers an important advantage to the Aβ antibodies currently in clinical development for both AD and AMD by several large pharmaceutical companies. This is because those antibodies (e.g. solanezumab, bapineuzumab, gantenerumab, crenzeumab, RN6G and GSK33766A) are designed for a single purpose, namely to clear Aβ, while none act on the important secondary neurotoxic mechanisms, such as oxidative stress that causes most of the damage from Aβ. By contrast, CONJUMAB-A is empowered with a potent antioxidant. An important step in establishing proof-of-principle was the initial data generated through our collaboration with iNovacia to evaluate compounds synthesized by Lonza for Intellect. The data demonstrated the conjugation of the antioxidant molecule to an amino acid does not reduce its antioxidant activity. Pending adequate financial resources, these studies, which are almost complete, will allow us to select a drug candidate to take into development, providing the trigger for us to move forward with LONZA into an expanded manufacturing project, bringing us closer to the submission of an Investigational New Drug application.

    In principle, our approach could be applied to improve many different types of antibodies, such as those that previously disappointed in clinical trials. However, currently we are focused on optimizing CONJUMAB-A using our own humanized antibody IN-N01, which targets the N-terminus of Aβ. We believe IN-N01 to be superior to bapineuzumab because of its reduced potential to cause inflammation that results from our reengineering into an IgG4 class antibody.

    Among several potential indications, we have decided to focus on AMD since both AMD and AD share several similarities, while the eye offers less challenge for delivering the drug. Indeed, physicians routinely perform injections into the eye cavity. Moreover, AMD is the leading cause of blindness in people over the age of 55, most of who respond poorly or not at all to existing therapies. While the relatively recent introduction of anti-vascular endothelial growth factor agents, such as intravitreal bevacizumab and ranibizumab, appear to have improved the prognosis for patients with wet AMD, preclinical studies have raised a potential red flag on anti-VEGF therapies, suggesting that increasingly aggressive use in eye disease could trigger side effects and potentially cause long-term damage. Moreover, no one has been able to develop an effective treatment for dry AMD, which is a significantly larger population, as it is the precursor to wet AMD.

    Ample evidence has established oxidative stress as an important contributor in the pathogenesis of AMD and several studies have indicated antioxidant molecules can help reduce damage to the retina. Various Aβ-lowering and Aβ-neuroprotective strategies have demonstrated the ability to protect against damage in various models of retinal degeneration, including Aβ-specific antibodies. Two such antibodies, GSK933766A and RN6Gare being tested in Phase 2 AMD trials having demonstrated an ability to reduce damage to RPE cells in animal models following systemic administration. These data lead us to believe CONJUMAB-A has the potential to become a strong leader in the field based on its combined properties to remove Aβ and reduce oxidative stress when delivered in high concentrations directly to the eye.

    Tau Programs:

    Tau immunotherapy is gaining traction in the Alzheimer's field, and it has potential applications for many orphan indications, such as the many types of frontotemporal dementia, among other tauopathies.

    TauC3 is a monoclonal antibody that uniquely targets a shortened form of tau protein known as ∆ tau that nerve cells produce after exposure to Aß. ∆ tau forms fibrils much faster than full-length tau and has been demonstrated to be a precursor of tangles commonly found in the brains of AD patients, as well as in the spectrum of diseases classified as frontotemporal dementias. The experiments we are conducting with our collaborators at UCI aim to validate ∆ tau as a therapeutic target and establish the potential of TauC3 for the treatment of AD and other tauopathies. As recently announced, we have initiated in vivo studies from which we anticipate data in the third quarter of 2013. If positive, we could develop TauC3 either as a single molecule or antibody-drug conjugate using the CONJUMAB platforms.

    TOC-1 is a monoclonal antibody that selectively targets yet another pretangle form of tau known as oligomeric tau. Oligomeric tau are small aggregates of tau that are thought to be extremely toxic and occur very early in Alzheimer's disease and other tauopathies. We currently are working toward re-engineering TOC-1 to produce a more druggable form of the molecule. This work is being undertaken in collaboration with two separate contract research organizations in Switzerland and China.

    Patent news:

    Tau patents: Intellect has established its position as a leader in tau immunotherapy with the publication of two Tau patent applications, which are accessible on the Internet: Patterson et al. 2011 Antibodies Selective for Pathological Tau Timers and Prefibrillar Tau Oligomers and their use in Treatment, Diagnosis and Monitoring of Tauopathies, published March 3 2012 under Publication No. WO 2012/1493653 and Chain, 2011: Treatment of Tauopathies, WO 2012/106363 published November 15, 2012. We have received a Written Report in each case, but we do not generally respond to such reports that are non-binding until there is an action from a foreign patent office during the national phase filings based on the PCT applications. We plan to enter the national phase filings next summer.

    ANTISENILIN patents:

    For reasons that are unclear to us, Johnson & Johnson and Pfizer are continuing in their opposition to our ANTISENILIN patent in Europe, having responded quite aggressively to our appeal notice and submissions even after the bapineuzumab Phase 3 results were announced. We are considering our response and strategy leading up to the Oral Hearings in Munich, which we anticipate will be scheduled for early next year. Meanwhile, we are waiting for an Official Action from the EPO with regard to our pending divisional patent application that aims to overcome the formalistic objections raised in the opposition. If the EOP grants us a patent on this second application, the opposition becomes moot.

    We received a first official action from the USPTO to our continuation-in-part application in which we are seeking additional claims, including to the amino terminus of Aß. We believe the arguments from the Examiner are quite straightforward to address and we are preparing our response. If successful, the issuance of this second patent would trigger another $2 million milestone payment from certain of our global pharmaceutical licensees.

    Increased Public Awareness:

    We continue our efforts to increase public and investor awareness of Intellect through media outreach and other activities, including my participation as presenter at several international industry and investor conferences. These activities also comprise an important component of our business development strategy as it gives us the opportunity to meet potential pharma partners face-to-face. Intellect was selected to give a presentation at BIOEUROPE in Barcelona March 11-13 and I have scheduled several meetings with potential partners. I also am an invited speaker at the Asian Antibody Conference in Singapore, June 17-20.

    Recent articles about Intellect include in the January edition of Merger Markets, part of the Financial Times Group, and the Jerusalem Report carried a profile this week paralleling some of the challenges I have faced in developing treatments for Alzheimer's disease to those experienced by my father, Ernst Chain, who discovered the therapeutic properties of penicillin in 1939. Also in January, Neurotech Insights published my article regarding the highlights of the 2012 Alzheimer's Drug Discovery.

    One of our stakeholders recently told me he thinks Intellect is the cat with nine lives! Indeed, we have overcome quite a few setbacks that may have put an end to many of our peers. However, despite those setbacks - and being chronically underfunded - our pipeline has continued to grow while a myriad of important achievements give us hope for the future. We continue to suffer from an enormously undervalued stock which I believe is the result of a few shareholders who for some reason are not invested in the long-term growth of the company. This single factor - their lack of support - is the largest hindrance to raising the new capital needed to advance our drug programs to points of value accretion where they can be partnered. My biggest hope for 2013 is for all of our stakeholders to recognize the tremendous inherent value of Intellect's remarkable discovery engine, intellectual property portfolio and pipeline and license agreements that are the envy of many much larger companies. We urge them to help reverse the previous trend and make the good news events really count!

    Thank you for your continued support of Intellect and its important mission to create a world without Alzheimer's disease and other debilitating neurodegenerative diseases.

    Sincerely,

    Daniel Chain, PhD

    Chairman and Chief Executive Officer

  • Report this Comment On January 07, 2014, at 5:52 PM, chris293 wrote:

    Really maybe some of the above fools have to think what the subject is, or are they near the weed state and breathing deeply. The point is you and I get better returns and growth with smaller companies that have the goods and services people want.

    Also it seems there is a lot of misinformation so check your facts.

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