A Chinese Financial Implosion Might Spur Opportunities – Here Are 4 Stocks to Watch
WINDSOR, ON / ACCESSWIRE / July 14, 2015 / The Wealthy Biotech Trader, an Investment Newsletter focused on showing everyday Investors new opportunities in rapidly growing, little-known, Biotech stocks making news and subsequent market moves, would like to report on recent developments in the global financial markets.
The sky is falling in China. Or so the finance experts would have you think. “Forget Athens, investors should be worried about China,” chimed CNN Money.
Bank of America Merrill Lynch warns that “an opaque Chinese financial system and a lack of clear definition of risk responsibility make contagion very high.”
Meanwhile, IMF chief economist Olivier Blanchard said recently that global economies “have entered a period of low growth.” The ongoing crisis in China may exacerbate this, thinks the IMF.
But there is another side for investors to consider. That side involves the tremendous investment opportunities that exist in several ‘long-term growth’ sectors.
Healthcare is one such sector and investors have perennially found safe and sustained returns by focusing on those opportunities at the earliest stages of the growth curve. Challenges in caring for an increasing elderly population as life expectancy continues its upward trajectory and the need to treat sufferers of diseases such as cancer and diabetes, present an unprecedented opportunity for entrepreneurs and investors alike.
Last year a report from Forbes estimated that annual healthcare spending in the US is greater than $3.8 trillion. That figure could increase by as much 10% over the next four years.
The point is this: healthcare spending will continue to generate profits for the companies with innovative solutions.
The crisis in Athens and to a larger extent China should not distract investors from the mountain of opportunities that abound.
And those opportunities are closer to home than most investors realize. Few realize for instance, that bio-threats and the accompanying technologies that help America beef up its defenses is big business.
PositiveID Corp. (OTC: PSID) leads an interesting field of biotech companies that offer strong upside opportunity in the healthcare and bio-threat detection space. XOMA Corporation (NASDAQ: XOMA), Anthera Pharmaceuticals, Inc. (NASDAQ: ANTH) and aTyr Pharma, Inc. (NASDAQ: LIFE) are also key players in an investment landscape ripe with growth potential.
Bio-detection Market Opens up Huge Opportunity
Research suggests that since the terrorist attacks of September 11, 2001, more than $50 billion has been spent on bio-terror mitigation programs implementation.
Despite this significant outlay however, many of the top experts admit that America is still vulnerable. Many believe that bio-detection is the key market that will help bolster the country’s defenses and herein is the tremendous investment opportunity.
According to one set of research data, 3rd generation technologies in the US bio-detection market will reach $2.6 billion by 2016. The overall market (taking into account systems sale, consumables, upgrades and service) could reach $22.8 billion.
The strong growth potential of the sector is undeniable, which makes the importance of getting on board the early-stage upside companies like PositiveID Corp. (OTC: PSID) all the more urgent.
PSID and Its Bio-Detection System Gets High-Level Attention
The Department of Homeland Security (DoHS) announced a massive $3.1 billion allocation for the deployment of Bio-watch Gen-3 Phase II, Stage 1 back in 2013. PSID became a part of a large-scale effort to get a piece of the action and was involved a $2.5 million cash license deal with Boeing (BA) for its M-BAND system in preparation for a potential bid with the DoHS.
This was only one part of the high profile that PSID and its latest product under development, the Firefly Dx technology got from companies in the defense space.
Federal constraints hampered the rollout of Bio-watch but that didn’t stop PSID from gaining more and more attention from partners and interested contractors in the space.
DirectView Security Systems, a leading video and security technology company recently signed a co-marketing agreement with PSID to jointly market the companies’ products to homeland security and first responders.
PositiveID Corp. (OTC: PSID) has also made significant progress with its Firefly Dx system. The company announced in June of this year that it has now successfully tested 12 different assays on its Firefly Dx breadboard prototype PCR (polymerase chain reaction) pathogen detection system. Using both its own as well as third-party assays, Firefly Dx successfully detected all the pathogens it tested for in less than 20 minutes.
20 minutes might seem like a long time but when you consider the virulent nature of some of the world’s deadliest pathogens this short testing and detection window could save millions of lives.
PositiveID Corp. (OTC: PSID) Delivers Upbeat Mid-Year Report Card
Significant achievements include:
– The completion of the design for the second-phase (bench-top) prototype of Firefly Dx. PSID also commenced the building for the second-phase prototype of Firefly Dx.
– The company also prepared additional M-BAND (Microfluidic Bioagent Autonomous Network Detector) systems for field deployment and testing and completed the build of its Firefly Dx PCR chip, and started testing assays to prove the design of achieving PCR results in less than 20 minutes.
– Protection of its valuable technology is also a key imperative for PSID and to that end the company filed two U.S. patents for Firefly Dx: “A Cyclical and Continuous Flow PCR Device,” which covers a cyclical mechanism of thermal cycling required to complete real-time PCR and deliver results in less than 20 minutes, and “A Cyclical PCR Device with Reusable Heat Zones”
– PSID also reported that it successfully detected influenza, which is an RNA virus and requires a reverse transcription step to create cDNA prior to PCR being performed, on its Firefly Dx prototype system.
PSID, Investing Upside and the Fierce Urgency of Now
PositiveID Corp. (OTC: PSID) finds itself among an elite set of biotech companies that are already in the trenches. These companies are churning out shareholder value with research and development.
Investors have a unique opportunity to tap into a company that has a technology that could quite possibly define the face of bio-detection not just for America, but for countries around the globe.
The recent improvements in the company’s technology and the huge gains made with partnerships and interest from key players in the bio-detection space highlight the gross undervaluation of the company presently.
There are few investing opportunities on Wall Street that have the upside potential of PositiveID Corp. (OTC: PSID).
XOMA Corporation (NASDAQ: XOMA) also shows promise. In fact, the developer of antibody-based therapeutics recently soared 20% on news that one of its drug offerings has been granted Orphan Drug Designation by the U.S. Food and Drug Administration (FDA). XOMA 358 has been developed for the treatment of congenital hyperinsulinism (HI). Investors could very well see this latest development as a firm indicator of the growth potential of the company so continued vigilance is therefore recommended.
Anthera Pharmaceuticals, Inc. (NASDAQ: ANTH) is another outstanding biotech company that is trending among Wall Street heavyweights. The company has been consistently beating analyst estimates and was recently added to the Russell 2000(R) and the Russell 3000(R) indexes, as part of the annual update to the Russell indexes. Inclusion in the Russell gives the company added exposure to shareholders and this can only boost the company’s investing profile.
aTyr Pharma, Inc. (NASDAQ: LIFE) rounds out the quartet of stocks to watch. The bio-therapeutics company was also recently added to the Russell 2000®, Russell 3000® and Russell Global Indexes as part of Russell Investments’ annual reconstitution. The addition to the Russell came weeks after the company announced its first quarter 2015 operating results and confirmed net proceeds of $76.9 million from a successfully completed IPO in May 2015.
The four biotech opportunities outlined above are just a one set of trade ideas sourced from our ongoing research. We’ll continue to explore opportunities across all the high-performing sectors on Wall Street.
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