As we move into a New Year it strikes me as appropriate to make some reflexive calls (mostly for fun) based on what we know today. These calls should not be taken as what will happen…no one should take any of these to the bank. To the contrary they are my personal thoughts and of course are rooted in the idea that there either is or will increasingly be strong interest in a product or service offered by these companies.
PLUG POWER-PLUG enters this year after what will be a nearly 200% increase in top line revenue in 2014. We expect that they finish the year between $68-70M. On some level Plug has been its own worst enemy inasmuch as they have over- promised and under-delivered on revenue even though again, they will be up nearly 200% for 2014. A fine example of no good deed going unpunished. Unfortunately they brought this on themselves and I believe that is one thing they must remedy in 2015. They can’t look like the Keystone Cops anymore with personnel decisions, quarterly reports or on any “investor calls.” They have to stick to the facts and learn not to hold a call if in fact there is nothing to say. Having said this, we think the anticipated investor call promised for sometime this month by CEO Andy Marsh should be full of information investors want to know, critical stuff like estimates for full year 2015. I think a good call is something that will move the stock well past $4 (and we do expect given recent orders that the ReliOn division will be a helpful add this year) at which point it will pick up steam as anticipated contracts are announced. If PLUG is able to make significant inroads on only its current client base there is no reason it can’t see high single or low double digits this year.
AETHLON MEDICAL- We fully expect this to be a company changing year for AEMD. The results of the CTE study originated by Boston University are expected at some point this month. Previously this often fatal disease was only able to be observed upon autopsy. For athletes and soldiers the world over early diagnosis could mean the difference between a life of misery and challenge or just a life. Recently, Aethlon’s Hemopurifier was approved to be used for an FDA study on Ebola patients at 10 medical centers around the country. There are so many different kinds of catalysts that this company has that they are too many to mention in this brief entry but you can look to some of my past posts or simply try to consider the conversations with health officials that Aethlon must be having or perhaps even companies interested in furthering their efforts. These kind of partnerships can obviously take many forms. As far as price action I would not be at all surprised if AEMD takes out the recent highs at some point during the first quarter of this year, maybe even this month.
SANOMEDICS- SIMH- (updated-1/7/2015) is highly speculative but we note the recent agreements with some very large medical product distributors such as Henry Schein Inc. I have seen some speculation regarding how it is that SIMH is producing enough product to meet anticipated demand. Our working assumption (and again it is just that) is that SIMH is taking enough of a down payment from these distributors that it satisfies what they would have to pay to any manufacturer prior to product delivery. There are of course myriad ways to structure this but we are assuming that demand for the product has made manufacturing possible in whatever amounts that demand presents itself. While the share structure on SIMH has changed (reportedly some 113M shares) we still see a possibility for a significant move here. How much? Anyone’s guess but as high as .20-.30 would not be a complete shocker if the company announces a significant order(s) which, in the current environment with respect to Ebola and new U.S. funding, we think it will. We learned earlier today (1/7) that the company has announced plans to increase A/S considerably and also is proposing a 1:125 reverse split. At this point we plan to steer clear of this investment unless and until the future becomes a bit more transparent.
HYPERSOLAR- Another highly speculative stock but one which is inching ever closer to pay dirt in its quest to produce Hydrogen at the point of distribution. We are surprised that HYSR is not sitting around .05 at this very moment but nonetheless we see an unexpected announcement coming from the company before mid-year. We think there is renewed and completely new interest in this company and not just from your typical retail penny players. Stay tuned. The old high on this stock is likely to fall this year which means about a 1000% increase.
As always these are my thoughts alone and not a recommendation for anyone to buy anything. Please do your own due diligence or consult a trusted financial advisor prior to purchasing any equity.