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The Iron Ore Market Is in a ‘Sweet Spot’ Right Now

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It’s possible for pure iron ore focused plays to outperform the big mining companies based on current market conditions.

Several companies in this vein are attracting interest and one junior miner in particular, Black Iron Inc. (TSX: BKI, OTC: BKIRF), has a strong formula for success and low-cost production.

The market for iron ore has been hot, especially for higher grade ore. Big mining companies with massive iron interests have seen a rally of investor support because of their low valuations, high earnings and big dividends. Rio Tinto for instance paid its largest interim dividend in its history last month.

But things are shifting. The demand for steel from China, the major consumer of iron ore, was dampened in September as that country slowed its forecast based on economic output and said it would lessen steel production during winter to help curb pollution (1).

Interestingly, other Asian countries including India and Vietnam look like they will take advantage of any price drop in iron ore and buy in. That should offset any lack of demand from China and put iron ore back where it was headed: up once again.

For those uncertain about the potential gains in iron ore, consider one well known mining company focused completely on iron ore: Cleveland-Cliffs jumped 12% in August 2017 alone (2).

That’s just one good reason to look at pure iron ore focused companies right now.

As our readers know, we are very positive on the junior mining sector. Many investors have done very well this year in that end of the market. That is why we suggest taking a hard look at Black Iron Inc.(TSX: BKI) (OTC: BKIRF), which is developing a large iron ore project in Ukraine to production.

We like the play, we like the economics and we think you think you’ll agree that the company can double or triple gains made by the more diversified miners, based on its unique opportunity.

You Could BUY a Pure Iron Ore Mining Stock at Pennies Per Share. See Our Recommendation.

Iron Ore Companies Have Been Good to Investors

If you take a moment to review the leaders from our Winners List (below) you’ll likely recognize that these are very large mining companies, save for one iron ore only miner. Our top three selections had a one year return of 54.66%, 19.53% and 92.03% respectively (4). This group has provided strong dividends and solid value.

The challenge for many investors is that these big board stocks trade in the over $40 to $50 a share or above range. They’re comparatively stable, but they already have any large gains and speculation built in to their pricing.

In order to achieve leverage, like 10 to 1, 20 to 1 or better, we realize you need to look at the early stage mining business with the focus on an immediate path to production and a means to expand the resource.

That is the exact description of Black Iron Inc.

Black Iron’s Ukraine Location is Pivotal to Its Success

Black Iron Inc. is a junior Canadian mining company advancing its 100% owned Shymanivske Project located in Kryvyi Rih, Ukraine, to production.

The project is located in an established mining region with five other operating iron ore mines in close proximity.

Black Iron has been at work in Ukraine since 2010 to develop this large scale project and was moving to production, but they were delayed when Russia decided to invade Eastern Ukraine and the Crimean Peninsula Region in 2014. Things have since stabilized in the rest of Ukraine and global consensus is that if Putin wanted to take the rest of Ukraine, he would have already done it. He has apparently achieved his strategic objective of securing the country’s naval base and assets most valuable to Russia.

After more than three years of stability, its business as usual in the rest of Ukraine including the region where Black Iron is located.

Black Iron has really moved into high gear as world iron ore economics have been ramping up.

The Shymanivske Project contains 646 million tonnes measured and indicated resources grading 31.6% iron and 188 million tonnes inferred resources grading 30.1% iron.

A bankable feasibility study for the project completed in 2014 provides excellent economics for 9.9 million tonnes per year of 68% iron ore concentrate production, including a Net Present Value of US$3.3 billion at an 8% discount rate and before tax Internal Return Rate of 48%(3).

As a rule of thumb: for base metal projects an after tax IRR of at least 15% is preferred by financiers of mining projects.

Importantly, since the report was issued, the Ukrainian currency (Ukrainian Hryvnia) has depreciated significantly, currently at around UAH 27 to US $1. The original value placed on the resource used an exchange rate of UAH 8 to US $1.

This means that Black Iron has lowered its costs dramatically from the original estimate based on a very favorable exchange rate, which could easily offset any lowered value in global ore prices.

Black Iron’s high grade of ore (68%) also fetches a premium to regular or low grade ores produced in many other regions.

What Black Iron has is a large, bankable ore deposit with significant potential expansion that it is bringing to production. And while the resource itself is the major asset, it’s the location in Ukraine that makes Black Iron’s project so attractive.

Location, Location, Location

As any mining company will tell you, in order to mine ore, you need ready access to move the product to markets, a secure power source and a reliable labor force. Of course being able to access all these at low cost makes or breaks the project.

This is where Black Iron has a potential grand slam.

The project location itself has paved roads to the site and lies just two kilometers from main state-owned rail line. There’s also a surplus of low-cost electricity readily accessible from high voltage power lines that run beside the company’s property. The site is also just 8 kilometers away from the major city of Kryvyi Rih (population 750,000) which has very skilled work force to draw from.

The region where Black Iron operates has rail access to Western Europe and it’s just 140 kilometers to nearest water port providing access to the Black Sea and global seaborne iron ore markets. The obvious targets for its product include Asia, Western Europe, Turkey, and the Middle East.

Besides the favorable exchange rate, Black Iron is also able to able to leverage low-cost electricity, transportation, a skilled work force that makes about $5.00 an hour and all this is rounded out by a highly affordable tax rate paid to the Ukraine government of just 18%.

Ukraine is an ideal spot for this project.

Imagine an IronOre Mining Stock That Could  See Returns of 10x, 20x or more! – See Our Recommendation

The Smart Play in Iron Ore: Junior Miners

Leaders in iron ore mining are typically large companies with part of their interests tied to steel production. They likely mine other metals or develop petroleum etc. For really big returns, we seek out early stage companies with strong economics. These are nearly always junior mining companies, as is the case with Black Iron Inc.

Why juniors? They are flexible and able to move quickly to scoop up opportunities. They don’t bear large overheads and they can shift when needed. Obviously they carry more risk than the BIG mining companies, but the returns can be outstanding.

Black Iron(TSX: BKI) (OTC: BKIRF) is a junior mining company that has put itself in a unique position. Their advanced Shymanivske project in Ukraine represents a $3.3 billion asset that ready to move to production with highly capable management and an impressive board. By any measure that is a huge project with legs and real potential for big pay back.

Take note that Black Iron must report its project by mining regulations NI 43-101 standards. However, the company has said that it will update the 2014 NI 43-101 information to reflect current market economics in Q4 of this year.

FEATURE STOCK: FOR COMPARISON

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Iron Ore Winners: Too Late for Big Gains, But Still Good to Study

We’ve pulled from the leaders in mining that have seen excellent returns this year already based on their focus on iron ore. Investors enjoy the safety of the fact that they are, for the most part, large and diversified across other mining interests and metals. Unfortunately, that’s the very same reason that these companies are not likely to see the kind of major returns that we are looking for in a pure iron ore player like our feature stock.

[table id=18/]

Our Recommendation: We Give BKI Our Highest Pure Play BUY Rating

Our scan of the market indicates that there’s a wide variance in the iron ore sector and that spells opportunity. You have to remember that it’s a commodity, so it is affected directly by demand and supply.

Iron ore markets are volatile and moves up of 100% up or down by 70% are the norm.

Despite the volatility, it’s possible to invest in iron ore miners and make outstanding returns, but you have to be aware of the impact of product grade on price, proximity to rail port and power. Not all miners are the same.

Pure play iron ore companies have potential for huge upside in both the short and long term. Short term they offer speculation on iron ore’s upswings. Long term they offer security of a well-established, predictable industry.

Given the competitors, we think BKI has one of the best positions for iron ore out of any in the global junior mining sector. They certainly have a lot going for them.

Their cost of production, location to world markets in Ukraine, ultra high-grade 68% iron content product, existing infrastructure and strong mining management make the company a shoe-in for success. They have the permitting, available labor and a huge resource to grow a valuable iron ore operation.

Ultimately, Black Iron’s Shymanivske iron ore project could be a leading resource in the region. It’s already valued in the billions.

Bottom Line: You can get in on what is a very affordable point in the iron ore trend now. There is the potential for major leverage in backing a junior mining company that has a proven resource, but that is not yet in production.

We are looking for BKI to move to production rapidly, establish operations, ramp up their capacity and expand the overall resource size and valuations.

Early investors, like those that slip in prior to reaching production, could see an immediate double, triple or more from an initial stake. And although the long-term will be determined by supply economics, we feel that steel production and investments in infrastructure that power the iron ore market are solid bets through to the next administration, at the very least.

 

USA News Group
Editorial Staff

 

Sources:

(1) Seeking Alpha – https://seekingalpha.com/news/3296562-iron-ore-prices-slide-amid-chinese-demand-doubts-peak-steel-warning

(2) Motley Fool –  https://www.fool.com/investing/2017/09/06/why-this-iron-ore-miner-jumped-12-in-august-bestin.aspx

(3) BKI – Bankable Feasibility Study – https://www.blackiron.com/Projects/Shymanivske-Project/default.aspx

(4) Bloomberg Markets – Online as at 10.6.2017 https://bloomberg.com

 

 

Disclaimer

Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. USAnewsgroup.com is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for Black iron Inc. advertising and digital media. There may be 3rd parties who may have shares of BKI, and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this newsletter as the basis for any investment decision. The owner/operator of USA News Group does not own any shares of BKI.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment

Three areas that could make early cannabis investors more profits than they thought

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Photo: Testing, research and extraction technologies are one of three prime areas where the massive Cannabis boom is being felt immediately. We’ve singled out Abattis Bioceuticals Corp. (OTC: ATTBF) (CSE: ATT) as an example company that cannabis minded investors can get in on ahead of the crowd.

After what was easily the hottest year for cannabis stocks, expectations on the legal marijuana related sector are higher than ever.

Of the dozen main players in the space, the average marijuana stock is up 332% over the past year.1

What savvy investors are focussing on now is how this rapidly developing sector can support what looks to be massive growth into the future. Apart from the obvious legalization, three areas are emerging that will be critical in the bid to ensure the sector’s meteoric rise: Better Testing and Extraction, More Medical Uses and Ensuring Adequate Supplies.

Companies who can deliver on these promises stand to make Cannabis investors a lot of money.

One company that appears to be well situated to capitalize on the Research, Testing and Extraction segment is Abattis Bioceuticals Corp (CSE: ATT – OTCQB: ATTBF), which we discuss below, along with a few other key players positioned for success.

The overall optimism led researchers at New Frontier Data to project that the cannabis industry will have created a whopping 283,422 jobs, grow to and generate $2.3 Billion in tax revenue—both by 2020.2

The same study predicted that the sector as a whole will grow to $24.1 Billion by 2025.

But in order to maintain the course in order to get to $24 Billion, companies will need to meet the demands of these three key developing areas:

– Our first and favorite sector may surprise you since it is not actually the cultivation, it’s going to be way bigger, and we’ve found a company that is widely undiscovered as noted below in our first example:

  1.  BETTER TESTING AND EXTRACTION

    Company: Abattis Bioceuticals Corp (CSE: ATT – OTCQB: ATTBF)

    Mkt Cap: $15.21M

    Still very early in its company’s story, Abattis has wisely burst onto the scene as a tester.  Wasting no time in getting its cannabis testing facility opened in Langley, BC, ahead of Canada’s full-scale legalization4 of cannabis expected by July 1, 2018, Abattis swiftly got itself into the game and already has garnered revenues.

    Abattis Bioceuticals’ subsidiary Northern Vine Labs opened its doors in May 2017, to serve the rising demand for cannabis testing. The company had been pursuing that license since 2014, and officially became licensed in October 2016.

    What is cannabis testing?

    In order to maintain quality control, and meet both regulatory, and market demands, cannabis laboratories test for potency, purity, and details such as terpene counts. Testing also protects the consumer by screening for contaminants such as bacteria, heavy metals, and unapproved pesticides.

    (For more information on Health Canada’s mandatory testing on medical cannabis click here. )

    For the 52 licensed producers in Canada, Health Canada introduced random testing to address these issues. Abattis’s facility is just 1 of 30 approved facilities in Canada, and one of the eight in BC’s lower mainland. Even better, Abattis is the only company available on the public markets, making it a solid choice in this sector. Once recreational cannabis becomes available in mid-2018, everyone will have to use a facility like what Abattis already has a leg up on, so keep that in mind while the PPS is low here.

    “Abattis Bioceuticals is one of very few publicly listed companies with comprehensive testing and extraction capabilities. They are also one of only 30 Health Canada approved labs able to handle cannabis for all forms of testing.”

    Demand for cannabis testing is big and getting bigger fast.

    The global cannabis testing market is expected to grow at a compound annual growth rate of 11.5%, culminating towards a $1.42 billion market by 2021.5

    In order to hit the shelves, producers will need to have an accurate depiction of the drug’s potency, including the levels of the most sought after medicinal components of cannabis, THC and CBD. To do that, even the mega producers will require a third party to test their product before it goes to market.

    Abattis is smartly staking itself as a leader in the testing field, having built a lab, and staffed it with industry experts to ensure the quality standard they promise the sector.

    The Northern Vine Labs facility will not just be used for testing, however. Another major component to the facility will be in extraction and formulation.

    This means that the company will be involved in innovation of methods to extract medicinal components from cannabis on a massive industrial scale, and to formulate them for consumer products.

    As a cooperative arm of the company to run in conjunction with Northern Vine Labs, Abattis has formed another subsidiary called Vergence, in order to market and sell natural, safe, and effective health products.

    Those products will target reducing pain caused from inflammation, boost immunity, and increase nutrient absorption. As natural remedies, these products will likely reach the market faster than a pharmaceutical product would, without the lengthy and costly clinical trials.

    According to the CBD Report published by The Hemp Business Journal, the US hemp-derived CBD market will total approximately $115 million this year, with an estimate to grow to $2.1 billion by 2020.6

    Abattis is tight-lipped about its ability to extract cannabinoids and terpenoids from cannabis at its facilities, however, it hasn’t been shy about hinting that it aims to be a leader in the extraction space. There’s a possibility that extraction will overtake testing as the company’s primary revenue model in the future.

     

  2.  MORE MEDICAL USES

    Company: Cara Therapeutics (CARA)

    Mkt Cap: $495M

    After a wild month that saw Cara Therapeutics rise to $26 per share, and plummeting to $12 per share within a week, this giant is on its way back to stardom.

    The bounce back came on the announcement of encouraging data from its phase 1 trials of oral CR845, as a treatment for pain and itching in patients with chronic kidney disease and undergoing hemodialysis. All tested doses were well tolerated when administrated daily.

    This came as a relief for shareholders after they saw the value of the company drop upon the same drug’s treatment for patients with osteoarthritis (OA) of the hip or knee. Lower doses achieved statistical significance. Only the highest dose received statistical significance. It’s still possible based on those results to test higher doses for significance.

    Medical marijuana sales, from pharmaceutical extracts to medically cultivated flowers, currently make up the lion’s share of the cannabis sector. Medical sales in 2017 are projected to grow to $5.3 billion in 2017, and account for 67% of total cannabis sales.2

    That means that medical cannabis patients are outspending adult-use consumers at a nearly 3 to 1 basis.

    While medical sales are projected to exceed $13.2 billion by 2020, the medical share of the total cannabis sales is expected to drop to 55% of all sales as well.

    Much of that has to do with the recreational legalization in larger states, like California, and in holiday states like Nevada.

    As cannabis stocks fly, the developers of new medicinal applications and products stand to make the most gains.

    While Cara fluctuated during its trials, new drug development was the reason that AXIM Biotechnologies (NASDAQ: AXIM) absolutely crushed it in 2016-17.

    As stated earlier, the average marijuana stock rose 332% over the last year.

    Much of that increase is skewed by the meteoric rise of AXIM Biotechnologies, whose year-over-year increase was 2,363%.

    You read that right.

    A large portion of that success can be attributed to the development of AXIM’s CanChew Plus Chewing Gum, used for the treatment of irritable bowel syndrome—or IBS. Used as an alternative delivery system to inhalation, CanChew tapped into the act of chewing which bypasses the gastrointestinal system and improves the bioavailability of cannabinoids.3

    Because medical uses for cannabis are still in their infancy, there are plenty of repeatable AXIM-like stories out there yet to be told.

 

  1. ENSURING A SUPPLY CHAIN SURPLUS

          Aurora Cannabis – ACBFF, ACB

          Mkt Cap: $941.6M

Second only to Axim over the last year was top performer Aurora Cannabis (NASDAQ:ACBFF)(TSX: ACB), which grew 465% year-over-year, rising from a low of $0.30 to $2.59 and a market cap just a shade under a Billion, at $941.6 million.

The company’s well deserved move to the TSX from the TSX venture this week is a pat on the back for a solid year that included record yields at Aurora’s Mountain View County production facility, and on the anticipation of the opening of its 100,000+ kg Aurora Sky facility to be located near the Edmonton International Airport.

With the nearing completion of a third production facility in Pointe-Claire, Quebec, Aurora’s production capacity is skyrocketing.

But supplies are still lagging in the market as a whole, especially after shelves emptied rapidly in Nevada after the state began adult-use sales on July 1.

Supply issues reached such dire levels, that Nevada Governor Brian Sandoval had to issue a state of emergency to allow state officials to decide on new rules to ease the shortage.7

As Canada (where Aurora is headquartered) inches closer to nation-wide marijuana legalization, it’s doubtful that the country will encounter the same scale of supply problems that hit Nevada.8 Especially with massive production coming from companies such as Aurora.

With other major Canadian producers, such as Canopy Growth Corp. (TSX: WEED) growing for both the North American and German markets, it’ll be interesting to see how supplies meet demand on a global scale.

CAPTURING THE TREND

Cannabis has still not been registered as a medicine in any country, and only a small number of cannabinoid medicines have reached the market.

With over 100 cannabinoids, and over 700 other compounds such as flavonoids and terpenes, the cannabis plant is still barely understood, as the legality over researching it, and testing its benefits has provided hurdles until recently.9

Hence the need for new, better and more abundant research and testing capabilities to keep pace with the industry’s growth.

“In order to maintain this growth pattern, industry players will need to provide the market with More Medical Uses, Better Testing and Extraction, and to Ensure Supplies.”

Public perception of the drug has changed significantly over the past decade, with it being seen more favorably than ever.

According to a survey2 done by New Frontier Data and Full Circle Research this January, 55% of respondents believed “cannabis should be legalized, regulated and taxed like cigarettes and alcohol”, and an additional 26% believed it should at least be “legal for medical use with a doctor’s recommendation.”

In fact, only 9% responded that cannabis should be illegal. Overall, 63% of those surveyed believed that the federal government should legalize cannabis, and 86% believed it has valid medical uses.

In 2016, 4 out of the 5 US states that voted on adult-use of cannabis passed legalization initiatives, with an average adult-use vote of 53% in favour. And all 4 states that voted on medical use passed their initiatives, with an average medical use vote of 62%.

For those that still hold doubt to the growth potential of the cannabis sector, there’s really nothing that will convince you. Sales are growing significantly for retailers, even as more retailers hit the scene.

In order to maintain this growth pattern, industry players will need to provide the market with More Medical Uses, Better Testing and Extraction, and to Ensure Supplies.

If, as all of the indicators suggest, the industry continues on its staggering growth, the opportunity to take advantage of the emerging trends is here, now. The benefactors of the impact like Abattis Bioceuticals, stand to make huge gains, while the leaders like Aurora Cannabis and Axim can build an even bigger lead against competitors who must surely emerge.

 

For American News Group

By G. Joel Chury

Edited by; American News Group Editorial Staff

 

FOOTNOTES:

1 – Motley Fool (July 2017) – The Average Marijuana Stock is up 332% over the past year

https://www.fool.com/investing/2017/07/24/the-average-marijuana-stock-is-up-332-over-the-tra.aspx?yptr=yahoo

2 – New Frontier Data – The Cannabis Industry Annual Report: 2017 Legal Marijuana Outlook

https://newfrontierdata.com/wp-content/uploads/2015/11/CIAR_Webinar_FINAL.pdf

3 – YAHOO! Finance – AXIM Biotech: Cannabinoid Potential Worth the Complexity

https://finance.yahoo.com/news/axim-biotech-cannabinoid-potential-worth-130000914.html

4 – Toronto Star – Trudeau government to legalize marijuana by Canada Day 2018: reports

https://www.thestar.com/news/canada/2017/03/26/trudeau-government-to-legalize-marijuana-by-canada-day-2018-reports.html

5 – Markets and Markets (March 2017) – Cannabis Testing Market by Product & Software (LC, GC, Spectroscopy (MS, Atomic), Column, Standards, Accessories, LIMS), Service (Potency, Pesticides, Heavy Metal, Genetic Testing), End User (Lab, Pharmaceutical, Research) – Global Forecast to 2021

https://www.marketsandmarkets.com/Market-Reports/cannabis-testing-market-46932450.html

6 – Hemp Business Journal – The CBD Report

https://www.hempbizjournal.com/the-cbd-report/

7 – Fox News (July 2017) – Nevada marijuana supply running low, state of emergency declared, governor says

https://www.foxnews.com/us/2017/07/11/nevada-marijuana-supply-running-low-state-emergency-declared-governor-says.html

8 – Fortune Magazine – Here’s Why Nevada’s Marijuana Supply Can’t Keep up with Sales

https://fortune.com/2017/07/12/nevada-marijuana-taxes-shortage/

9 – The Medicine Maker (June 2017) – Cannabis Complex

https://themedicinemaker.com/issues/0617/cannabis-complex/

Disclaimer: Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Americannewsgroup.com is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for Abattis Bioceuticals Corp. from the company direct of ten thousand canadian dollars, as well as two hundred and fifty thousand free trading shares of ATT.CN for advertising and digital media. There may be 3rd parties who may have shares of Abattis Bioceuticals Corp., and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this newsletter as the basis for any investment decision. We have no intentions of selling any shares within the next 72 hours of this publishing date (August 9, 2017), but reserve the right to buy and sell shares thereafter without any further notice.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment

The Iron Ore Market Is in a ‘Sweet Spot’ Right Now

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The market for iron ore has been hot, especially heading toward the end of the year. Big mining companies with massive iron interests have seen a rally of investor support because of their low valuations, high earnings and big dividends.

But things are shifting. The demand for steel from China, the major consumer of iron ore, was dampened in September as that country slowed its forecast based on economic output and said it would lessen steel production during winter to help curb pollution.

Interestingly, other Asian countries including India and Vietnam look like they will take advantage of any price drop in iron ore and buy in. That should offset any lack of demand from China and put iron ore back where it was headed: up once again.

As any mining company will tell you, in order to mine ore, you need ready access to move the product to markets, a secure power source and a reliable labor force. Of course being able to access all these at low cost makes or breaks the project.

Leaders in iron ore mining are typically large companies with part of their interests tied to iron ore production. They likely mine other metals or develop petroleum etc. For really big returns, and in this particular climate, consider looking at early stage companies with strong economics.

Why juniors? They are flexible and able to move quickly to scoop up opportunities. They don’t bear large overheads and they can shift when needed. Obviously they carry more risk than the BIG mining companies, but the returns can be outstanding.

Blue Light Cystoscopy Increases Bladder Cancer Detection Rate

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Before we discuss this major technology shift, we need to add an important footnote: the company we discuss, Imagin Medical Inc. (CSE: IME OTC: IMEXF), just announced approval of human testing for their product.

See the news release:(1)

We add this note because the news is not widely known and puts the company at a completely different stage of development.

Imagin Medical’s stock has not noticeably changed, likely because the news is so new and hasn’t been publicized except to peers in the medical industry.

Companies in the unique position of being in clinical testing with a breakthrough product who are virtually unknown don’t come along every day. We urge our readers to carefully consider that there are few public medical companies this operationally advanced – including in human testing with a fully patented medical system – but trading at pennies per share.

Imagin Medical is a Revolution in The Making

Can you remember the last time you watched a low-res, cathode ray TV? You might or you may be too young to have even experienced that ancient technology. But you certainly can remember experiencing the clarity and detail that came to life when you saw your first HD movie on a 1080i flat screen… and perhaps more recently when you saw an Ultra-High-Definition 4K TV at full resolution.

That is the kind of difference that Imagin Medical Inc. is bringing to the medical imaging and diagnostics market for the treatment of one of the most widespread and costly forms of disease: bladder cancer.

And that’s why its diagnostic system can revolutionize treatment.

Imagin Medical Inc. is an emerging medical imaging company that we think could make a fortune for investors who take advantage of its early stage development. We view this as a biotech style breakthrough without the many hurdles associated with biotech development and with a direct path to product sales as early as 2019.

Medical Imaging’s New Reality

Just as the other digital technologies have been advancing in leaps and bounds, so too has medical imaging. You’ve probably noticed this everywhere from your dentist’s chair, where x-rays now arrive on the screen, to orthoscopic surgery as an in-patient or even in a small clinic. Medical imaging and the diagnostics that it supports are being totally transformed.

There are powerful, new technologies and techniques that are being adopted almost daily. A select few companies have taken the opportunity to draw on the new capabilities and are developing patented approaches that can forever change the way that diseases are diagnosed and treated.

This is the calling of Imagin Medical Inc. and their i/Blue™ Imaging System for the imaging and treatment of tumors targeting bladder cancer.

You won’t likely know about Imagin Medical yet. Their patented i/Blue™ Imaging System just passed through the prototype stage and is about to go into human testing. For our readers, that’s a good thing. Since it’s not widely known, you can accumulate stock at pennies a share– well before the wider market takes notice and creates demand.

We’ve spelled out why we think the situation is a great opportunity that holds the potential for big profits.

One Hundred Times More Accurate at Visualizing Tumors

Imagin Medical is the developer of the i/Blue™ Imaging System to help detect bladder cancer and reduce its recurrence by dramatically improving the urologist’s ability to visualize, identify and then remove cancerous cells.

Here’s how the technology works:

With the development of compact color video cameras over 30 years, urologists have adopted endoscopes (or cystoscopes) combined with white light and video imaging to visualize the interior of the human bladder in order to detect cancer.

Using this technology, providers established that malignant lesions may not be visible and not detected during endoscopic examination alone. So in 2010, the FDA approved a combination of fluorescing drugs and specialized blue light imaging to improve the visualization of tumors.

Bladder cancer tumor, visualized through an endoscope using white light (left image) and blue light using Photocure’s chemical agent called Cysview®* (right image)

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Without question, this method produces better visualization and detection of malignant lesions. However, the available technology has several issues that are slowing the wide adoption of this technology.

The main drawbacks besides an inability to more accurately visualize the tumors, are the time needed to absorb fluorescing drugs and the inability to view multiple perspectives of the bladder at the same time.

Imagin Medical’s i/Blue™ patented computer technology, white light and near-infrared fluorescence overcomes all of these shortfalls.

The company’s approach allows the system to accurately image in less than 15 minutes vs. the one-hour period required to metabolize the drug using conventional fluorescing.

Current imaging technology offers only blue filtered images showing a highlighted fluorescence image of the cancer, but without a precise indication of where it is located in the bladder. To see that, the surgeon needs a white light only view to show the full landscape of the bladder, causing them to have to switch back and forth between the white and blue light images on separate systems.

Imagin Medical’s computer application cleans, reprocesses, blends and displays the image of the bladder and cancer onto a single monitor at the same time.

Most importantly, Imagin’s i/Blue™ system increases sensitivity for detecting the cancer specific contrast agent by 5 orders of magnitude or in terms of visibility, 100,000X.

This advancement in sensitivity is vitally important because it improves the surgeon’s ability to detect even flat cancers and to visualize their margins for more complete removal. Ultimately this can dramatically reduce the risk of recurrence, slowing the progression of the disease.(2)

Simply a Better Solution: Less Invasive, Less Costly, More Effective

Advancements in medical technology are crucial, but if they are impractical or too expensive, they simply won’t find their way into the medical system. It’s a fact.

What’s really exciting about the i/Blue™ System is its ability to improve results, simplify procedures, save time, and save money. And in the healthcare system, that is always going to be a major factor.

With a shorter period to review initial diagnostics (roughly 1/3 previous requirements), the time savings is expected to increase the efficiency of the Operating Room markedly. Since it is minimally invasive, the i/Blue™ System will also enable diagnostic and surgical procedures to be performed in the less expensive physician’s office for follow-up exams.

In the end, the recurring nature of the bladder cancer due to missed or undetected tumor removal has made it the most expensive form out of treatable cancers.

Through more effective diagnostics and vastly improved imaging, the i/Blue™ system can have a profound impact on the outcomes from surgery to remove tumors and thereby seriously reduce the cost of treatment or re-treatment.

The i/Blue™ System is such a giant leap forward in the medical imaging space that it qualifies as a disruptive technology

Heavyweights in The Field Doing What They Do Best

Imagin Medical’s products are based on the technology invented by Dr. Stavros Demos at the Lawrence Livermore National Laboratory (LLNL).

Dr. Demos worked in collaboration with the UC Davis Comprehensive Cancer Center and Dr. Ralph deVere White, one of the world’s leading authorities on bladder cancer, for more than five years to determine the system’s feasibility.

Imagin Medical has now licensed the technology from LLNL and moved the final stages of development to the University of Rochester Laboratory for Laser Energetics (LLE).

We don’t often detail the backgrounds of management, but in this case we think it’s important to understand the professional level of the team responsible for the current and future path of Imagin Medical and its’ i/Blue™ technology.

Imagin’s management have successfully forwarded numerous products and valuable research to the medical field over their lengthy careers including:

Dr. Stavros G. Demos is the technical advisor to the company. He is a prolific inventor and scholar, as well as a laser materials expert. Companies using his technologies include Muse Microscopy, Near Infrared Imaging, and Biosense/Webster. Dr. Demos holds 20 patents and has published more than 115 scholarly journal articles.

Dr. Stavros is the original inventor of the i/Blue™ system and is continuing to work with Imagin in developing the technology. Imagin has an agreement with UC Davis and the University of Rochester Laboratory for Laser Energetics where Dr. Demos continues to support Imagin’s development team through clinical evaluations and into commercialization.

Dr. Ralph deVere White who serves as Imagin’s Medical Advisor, is one of the world’s foremost authorities on bladder cancer. He has authored more than 300 peer-reviewed scientific articles. He is also the director of the UC Davis Comprehensive Cancer Center and a professor of urology at the university. He will actively consult with the Imagin team about bladder cancer.

Rounding out this impressive group is Dr. Edward Messing, Chief of Urology at the University of Rochester Medical Center.

Dr. Messing is a renowned expert in the diagnosis and treatment of cancers of the bladder, prostate, kidney, and other genitourinary organs. He has conducted extensive research in the basic biology of bladder and prostate cancers and has been the principal investigator on numerous clinical studies for the detection, prevention and treatment of genitourinary cancers.

Drs. Demos and deVere White continue to the lead in the guidance of testing and development of the i/Blue™ System. Dr. Messing will sponsor the Clinical Research Study at the

University of Rochester using i/Blue Technology.(3)

Bladder Cancer is the 6th Largest Cancer Market

Imagin Medical participates in the enormous medical imaging, diagnostics and treatment market. The US spends $4.5 billion per year on imaging alone. The diagnostic imaging segment has seen continual growth based on the increasing number of patients, as well as an increasing demand for minimally invasive surgery, which requires precise imaging.

Increasing investments from public-private organizations; growth in the number of diagnostic imaging centers; rising prevalence of cancer; increasing geriatric population and the subsequent growth in the incidence of various diseases; technological advancements in diagnostic imaging modalities; and increasing preference for minimally invasive treatments all drive the growth of this market.

More specifically, the i/Blue™ System is targeted initially at imaging and treatment of bladder cancer.

This year, an estimated 79,030 adults (60,490 men and 18,540 women) will be diagnosed with bladder cancer in the United States. It is estimated that 16,870 deaths from this disease will occur this year.

The treatment of bladder cancer is the most expensive form of cancer to treat, accounting for cumulative costs of $4 billion or about 3.2% of all cancer care each year. It is the sixth largest market for cancer treatment and yet treatment approaches have not changed significantly over the past 25 years.

Healthcare providers and the medical system are desperately seeking ways to reduce the cost of treatment for bladder cancer and provide better, more effective diagnostics and monitoring, since it often requires multiple treatments and continuous follow up over its course. (4)

Potential for Additional Applications Adds Major Value

While Imagin is initially focusing on the bladder cancer imaging market, the company expects that its dual-light, single-screen imaging system will set new standards of care for doctors and surgeons in detecting many other kinds of cancers and conditions.

These may include laparoscopic (general and gynecology), colorectal and thoracic procedures related to cancer and non-cancerous conditions.

According to Stratistics MRC, the Global Medical Imaging market is accounted for $29.8 billion in 2016 and is expected to reach $45.1 billion by 2022. (5)

The US represents the largest market where each day 10,000 people turn 65 years old. The impact of The Affordable Care Act (“Obamacare”) is also providing access to additional services like imaging for more of the population.

The Asia-Pacific region is the fastest growing area. This region is driven by the massive population base and the many environmental health issues created by rapid industrialization.

China is evolving into a massive market for healthcare products in dire need of effective diagnostics and treatments. This one market alone is a potential gold mine for IME to expand the application of its patented technology.

FEATURE STOCK: FOR COMPARISON

[table id=21 /]

The Winners: Too Late For Mass Gains, But Good To Study

These stocks represent some of the biggest winners in the healthcare sector over the last several years. These are large cap stocks, but they are evidence of just how well the industry has performed as a whole and offer insight into the kind of mammoth companies who could look to acquire a well positioned company like Allied Health Care Products.

[table id=22 /]

Our Recommendation: We Give IME Our Strongest BUY Rating

It’s hard not to be impressed by what you see when drill down into Imagin Medical Inc. This is a pure execution play.

By that we mean, the research and development is all but complete and the technology is proven very effective for diagnostics in treating bladder cancer. This removes massive risk for investors.

Imagin Medical’s i/Blue™ technology is also patented. So the company has the ability to build, license or sell its technology and retain all of the value in what is almost certain to be a disruptive technology.

And speaking of acquisitions, it’s pretty common for medical device companies to grow by acquisition, not organically. We see that as a real possibility as IME goes through its human testing recently announced. A lot of attention will come to the product and company as results are published through the National Institute of Health.

The other major risk factor with emerging medical device or technology companies is having the management needed to “get it done”. By their credentials, the team is truly outstanding. They are leaders in their respective fields who have demonstrated their ability to successfully bring medical devices and new technologies to market before.

The market for the effective treatment of bladder cancer is large and growing worldwide. Imagin Medical can potentially offer one of the only major improvements and cost-effective solutions that the market is seeking right now.

Companies that can deliver breakthroughs for healthcare products and services are expected to continue to be very attractive. That goes for the so called “killer B’s” in our summary (Baxter, B&D and Boston Scientific), and for the small companies with disruptive technologies and a strategic pathway to revenue, including Imagin Medical Inc.

It’s still unknown whether the Trump version of the Affordable Healthcare Act will deliver on the proposed tax cuts that could give the medical device industry a big boost. We will have to wait and see. Based on the industry’s current strong performance, that really doesn’t appear to be a deal breaker.

Let’s face it, if you are dealing with bladder cancer or might face it in the future, you really want Imagin Medical Inc. to succeed. We all might get a big benefit for backing them in the developing stages.

 

USA News Group
Editorial Staff

 

 

Sources:

(1) Imagin Medical news release – https://finance.yahoo.com/news/imagin-medical-receives-approval-1st-212242836.html

(2) Technology efficacy – https://imaginmedical.com/technology/

(3) Clinical Research Study – https://clinicaltrials.gov/ct2/show/NCT03058705?term=imagin+medical&rank=1

(4) The excessive cost of early Stage Bladder Cancer – https://onlinelibrary.wiley.com/store/10.1002/cncr.25227/asset/25227_ftp.pdf;jsessionid=CD2167D8CD074FB3B7C56B4B0F887379.f03t04?v=1&t=j8kvn488&s=7e17361d0151c457c6b8db3bd0137c891c49ecec

(5) Market for Imaging –  https://www.marketsandmarkets.com/PressReleases/diagnostic-imaging-market.asp

 

 

 

 

 

 

Disclaimer

 

Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. USAnewsgroup.com is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for Imagin Medical Inc. advertising and digital media. There may be 3rd parties who may have shares of IME, and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this newsletter as the basis for any investment decision. The owner/operator of USA News Group does not own any shares of IME.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

Small Medical Wonders Hold Promise for Big Profits

by

Before we discuss this major technology shift, we need to add an important footnote: the company we discuss, Imagin Medical Inc. (CSE: IME OTC: IMEXF), just announced approval of human testing for their product.

See the news release:(1)

We add this note because the news is not widely known and puts the company at a completely different stage of development.

Imagin Medical’s stock has not noticeably changed, likely because the news is so new and hasn’t been publicized except to peers in the medical industry.

Companies in the unique position of being in clinical testing with a breakthrough product who are virtually unknown don’t come along every day. We urge our readers to carefully consider that there are few public medical companies this operationally advanced – including in human testing with a fully patented medical system – but trading at pennies per share.

Imagin Medical is a Revolution in The Making

Can you remember the last time you watched a low-res, cathode ray TV? You might or you may be too young to have even experienced that ancient technology. But you certainly can remember experiencing the clarity and detail that came to life when you saw your first HD movie on a 1080i flat screen… and perhaps more recently when you saw an Ultra-High-Definition 4K TV at full resolution.

That is the kind of difference that Imagin Medical Inc. is bringing to the medical imaging and diagnostics market for the treatment of one of the most widespread and costly forms of disease: bladder cancer.

And that’s why its diagnostic system can revolutionize treatment.

Imagin Medical Inc. is an emerging medical imaging company that we think could make a fortune for investors who take advantage of its early stage development. We view this as a biotech style breakthrough without the many hurdles associated with biotech development and with a direct path to product sales as early as 2019.

Medical Imaging’s New Reality

Just as the other digital technologies have been advancing in leaps and bounds, so too has medical imaging. You’ve probably noticed this everywhere from your dentist’s chair, where x-rays now arrive on the screen, to orthoscopic surgery as an in-patient or even in a small clinic. Medical imaging and the diagnostics that it supports are being totally transformed.

There are powerful, new technologies and techniques that are being adopted almost daily. A select few companies have taken the opportunity to draw on the new capabilities and are developing patented approaches that can forever change the way that diseases are diagnosed and treated.

This is the calling of Imagin Medical Inc. and their i/Blue™ Imaging System for the imaging and treatment of tumors targeting bladder cancer.

You won’t likely know about Imagin Medical yet. Their patented i/Blue™ Imaging System just passed through the prototype stage and is about to go into human testing. For our readers, that’s a good thing. Since it’s not widely known, you can accumulate stock at pennies a share– well before the wider market takes notice and creates demand.

We’ve spelled out why we think the situation is a great opportunity that holds the potential for big profits.

One Hundred Times More Accurate at Visualizing Tumors

Imagin Medical is the developer of the i/Blue™ Imaging System to help detect bladder cancer and reduce its recurrence by dramatically improving the urologist’s ability to visualize, identify and then remove cancerous cells.

Here’s how the technology works:

With the development of compact color video cameras over 30 years, urologists have adopted endoscopes (or cystoscopes) combined with white light and video imaging to visualize the interior of the human bladder in order to detect cancer.

Using this technology, providers established that malignant lesions may not be visible and not detected during endoscopic examination alone. So in 2010, the FDA approved a combination of fluorescing drugs and specialized blue light imaging to improve the visualization of tumors.

Bladder cancer tumor, visualized through an endoscope using white light (left image) and blue light using Photocure’s chemical agent called Cysview®* (right image)

[table id=23 /]

Without question, this method produces better visualization and detection of malignant lesions. However, the available technology has several issues that are slowing the wide adoption of this technology.

The main drawbacks besides an inability to more accurately visualize the tumors, are the time needed to absorb fluorescing drugs and the inability to view multiple perspectives of the bladder at the same time.

Imagin Medical’s i/Blue™ patented computer technology, white light and near-infrared fluorescence overcomes all of these shortfalls.

The company’s approach allows the system to accurately image in less than 15 minutes vs. the one-hour period required to metabolize the drug using conventional fluorescing.

Current imaging technology offers only blue filtered images showing a highlighted fluorescence image of the cancer, but without a precise indication of where it is located in the bladder. To see that, the surgeon needs a white light only view to show the full landscape of the bladder, causing them to have to switch back and forth between the white and blue light images on separate systems.

Imagin Medical’s computer application cleans, reprocesses, blends and displays the image of the bladder and cancer onto a single monitor at the same time.

Most importantly, Imagin’s i/Blue™ system increases sensitivity for detecting the cancer specific contrast agent by 5 orders of magnitude or in terms of visibility, 100,000X.

This advancement in sensitivity is vitally important because it improves the surgeon’s ability to detect even flat cancers and to visualize their margins for more complete removal. Ultimately this can dramatically reduce the risk of recurrence, slowing the progression of the disease.(2)

Simply a Better Solution: Less Invasive, Less Costly, More Effective

Advancements in medical technology are crucial, but if they are impractical or too expensive, they simply won’t find their way into the medical system. It’s a fact.

What’s really exciting about the i/Blue™ System is its ability to improve results, simplify procedures, save time, and save money. And in the healthcare system, that is always going to be a major factor.

With a shorter period to review initial diagnostics (roughly 1/3 previous requirements), the time savings is expected to increase the efficiency of the Operating Room markedly. Since it is minimally invasive, the i/Blue™ System will also enable diagnostic and surgical procedures to be performed in the less expensive physician’s office for follow-up exams.

In the end, the recurring nature of the bladder cancer due to missed or undetected tumor removal has made it the most expensive form out of treatable cancers.

Through more effective diagnostics and vastly improved imaging, the i/Blue™ system can have a profound impact on the outcomes from surgery to remove tumors and thereby seriously reduce the cost of treatment or re-treatment.

The i/Blue™ System is such a giant leap forward in the medical imaging space that it qualifies as a disruptive technology

Heavyweights in The Field Doing What They Do Best

Imagin Medical’s products are based on the technology invented by Dr. Stavros Demos at the Lawrence Livermore National Laboratory (LLNL).

Dr. Demos worked in collaboration with the UC Davis Comprehensive Cancer Center and Dr. Ralph deVere White, one of the world’s leading authorities on bladder cancer, for more than five years to determine the system’s feasibility.

Imagin Medical has now licensed the technology from LLNL and moved the final stages of development to the University of Rochester Laboratory for Laser Energetics (LLE).

We don’t often detail the backgrounds of management, but in this case we think it’s important to understand the professional level of the team responsible for the current and future path of Imagin Medical and its’ i/Blue™ technology.

Imagin’s management have successfully forwarded numerous products and valuable research to the medical field over their lengthy careers including:

Dr. Stavros G. Demos is the technical advisor to the company. He is a prolific inventor and scholar, as well as a laser materials expert. Companies using his technologies include Muse Microscopy, Near Infrared Imaging, and Biosense/Webster. Dr. Demos holds 20 patents and has published more than 115 scholarly journal articles.

Dr. Stavros is the original inventor of the i/Blue™ system and is continuing to work with Imagin in developing the technology. Imagin has an agreement with UC Davis and the University of Rochester Laboratory for Laser Energetics where Dr. Demos continues to support Imagin’s development team through clinical evaluations and into commercialization.

Dr. Ralph deVere White who serves as Imagin’s Medical Advisor, is one of the world’s foremost authorities on bladder cancer. He has authored more than 300 peer-reviewed scientific articles. He is also the director of the UC Davis Comprehensive Cancer Center and a professor of urology at the university. He will actively consult with the Imagin team about bladder cancer.

Rounding out this impressive group is Dr. Edward Messing, Chief of Urology at the University of Rochester Medical Center.

Dr. Messing is a renowned expert in the diagnosis and treatment of cancers of the bladder, prostate, kidney, and other genitourinary organs. He has conducted extensive research in the basic biology of bladder and prostate cancers and has been the principal investigator on numerous clinical studies for the detection, prevention and treatment of genitourinary cancers.

Drs. Demos and deVere White continue to the lead in the guidance of testing and development of the i/Blue™ System. Dr. Messing will sponsor the Clinical Research Study at the

University of Rochester using i/Blue Technology.(3)

Bladder Cancer is the 6th Largest Cancer Market

Imagin Medical participates in the enormous medical imaging, diagnostics and treatment market. The US spends $4.5 billion per year on imaging alone. The diagnostic imaging segment has seen continual growth based on the increasing number of patients, as well as an increasing demand for minimally invasive surgery, which requires precise imaging.

Increasing investments from public-private organizations; growth in the number of diagnostic imaging centers; rising prevalence of cancer; increasing geriatric population and the subsequent growth in the incidence of various diseases; technological advancements in diagnostic imaging modalities; and increasing preference for minimally invasive treatments all drive the growth of this market.

More specifically, the i/Blue™ System is targeted initially at imaging and treatment of bladder cancer.

This year, an estimated 79,030 adults (60,490 men and 18,540 women) will be diagnosed with bladder cancer in the United States. It is estimated that 16,870 deaths from this disease will occur this year.

The treatment of bladder cancer is the most expensive form of cancer to treat, accounting for cumulative costs of $4 billion or about 3.2% of all cancer care each year. It is the sixth largest market for cancer treatment and yet treatment approaches have not changed significantly over the past 25 years.

Healthcare providers and the medical system are desperately seeking ways to reduce the cost of treatment for bladder cancer and provide better, more effective diagnostics and monitoring, since it often requires multiple treatments and continuous follow up over its course. (4)

Potential for Additional Applications Adds Major Value

While Imagin is initially focusing on the bladder cancer imaging market, the company expects that its dual-light, single-screen imaging system will set new standards of care for doctors and surgeons in detecting many other kinds of cancers and conditions.

These may include laparoscopic (general and gynecology), colorectal and thoracic procedures related to cancer and non-cancerous conditions.

According to Stratistics MRC, the Global Medical Imaging market is accounted for $29.8 billion in 2016 and is expected to reach $45.1 billion by 2022. (5)

The US represents the largest market where each day 10,000 people turn 65 years old. The impact of The Affordable Care Act (“Obamacare”) is also providing access to additional services like imaging for more of the population.

The Asia-Pacific region is the fastest growing area. This region is driven by the massive population base and the many environmental health issues created by rapid industrialization.

China is evolving into a massive market for healthcare products in dire need of effective diagnostics and treatments. This one market alone is a potential gold mine for IME to expand the application of its patented technology.

FEATURE STOCK: FOR COMPARISON

[table id=21 /]

The Winners: Too Late For Mass Gains, But Good To Study

These stocks represent some of the biggest winners in the healthcare sector over the last several years. These are large cap stocks, but they are evidence of just how well the industry has performed as a whole and offer insight into the kind of mammoth companies who could look to acquire a well positioned company like Allied Health Care Products.

[table id=22 /]

Our Recommendation: We Give IME Our Strongest BUY Rating

It’s hard not to be impressed by what you see when drill down into Imagin Medical Inc. This is a pure execution play.

By that we mean, the research and development is all but complete and the technology is proven very effective for diagnostics in treating bladder cancer. This removes massive risk for investors.

Imagin Medical’s i/Blue™ technology is also patented. So the company has the ability to build, license or sell its technology and retain all of the value in what is almost certain to be a disruptive technology.

And speaking of acquisitions, it’s pretty common for medical device companies to grow by acquisition, not organically. We see that as a real possibility as IME goes through its human testing recently announced. A lot of attention will come to the product and company as results are published through the National Institute of Health.

The other major risk factor with emerging medical device or technology companies is having the management needed to “get it done”. By their credentials, the team is truly outstanding. They are leaders in their respective fields who have demonstrated their ability to successfully bring medical devices and new technologies to market before.

The market for the effective treatment of bladder cancer is large and growing worldwide. Imagin Medical can potentially offer one of the only major improvements and cost-effective solutions that the market is seeking right now.

Companies that can deliver breakthroughs for healthcare products and services are expected to continue to be very attractive. That goes for the so called “killer B’s” in our summary (Baxter, B&D and Boston Scientific), and for the small companies with disruptive technologies and a strategic pathway to revenue, including Imagin Medical Inc.

It’s still unknown whether the Trump version of the Affordable Healthcare Act will deliver on the proposed tax cuts that could give the medical device industry a big boost. We will have to wait and see. Based on the industry’s current strong performance, that really doesn’t appear to be a deal breaker.

Let’s face it, if you are dealing with bladder cancer or might face it in the future, you really want Imagin Medical Inc. to succeed. We all might get a big benefit for backing them in the developing stages.

 

USA News Group
Editorial Staff

 

 

Sources:

(1) Imagin Medical news release – https://finance.yahoo.com/news/imagin-medical-receives-approval-1st-212242836.html

(2) Technology efficacy – https://imaginmedical.com/technology/

(3) Clinical Research Study – https://clinicaltrials.gov/ct2/show/NCT03058705?term=imagin+medical&rank=1

(4) The excessive cost of early Stage Bladder Cancer – https://onlinelibrary.wiley.com/store/10.1002/cncr.25227/asset/25227_ftp.pdf;jsessionid=CD2167D8CD074FB3B7C56B4B0F887379.f03t04?v=1&t=j8kvn488&s=7e17361d0151c457c6b8db3bd0137c891c49ecec

(5) Market for Imaging –  https://www.marketsandmarkets.com/PressReleases/diagnostic-imaging-market.asp

 

 

 

 

 

 

Disclaimer

 

Nothing in this publication should be considered as personalized financial advice. We are not licensed under securities laws to address your particular financial situation. No communication by our employees to you should be deemed as personalized financial advice. Please consult a licensed financial advisor before making any investment decision. This is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. USAnewsgroup.com is a wholly-owned subsidiary of Market IQ Media Group, Inc. (“MIQ”). MIQ has been paid a fee for Imagin Medical Inc. advertising and digital media. There may be 3rd parties who may have shares of IME, and may liquidate their shares which could have a negative effect on the price of the stock. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this newsletter as the basis for any investment decision. The owner/operator of USA News Group does not own any shares of IME.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

Three areas that could make early cannabis investors more profits than they thought

by

Photo: Testing, research and extraction technologies are one of three prime areas where the massive Cannabis boom is being felt immediately. We’ve singled out Abattis Bioceuticals Corp. (OTC: ATTBF) (CSE: ATT) as an example company that cannabis minded investors can get in on ahead of the crowd.

After what was easily the hottest year for cannabis stocks, expectations on the legal marijuana related sector are higher than ever.

Of the dozen main players in the space, the average marijuana stock is up 332% over the past year.1

What savvy investors are focussing on now is how this rapidly developing sector can support what looks to be massive growth into the future. Apart from the obvious legalization, three areas are emerging that will be critical in the bid to ensure the sector’s meteoric rise: Better Testing and Extraction, More Medical Uses and Ensuring Adequate Supplies.

Companies who can deliver on these promises stand to make Cannabis investors a lot of money.

One company that appears to be well situated to capitalize on the Research, Testing and Extraction segment is Abattis Bioceuticals Corp (CSE: ATT – OTCQB: ATTBF), which we discuss below, along with a few other key players positioned for success.

The overall optimism led researchers at New Frontier Data to project that the cannabis industry will have created a whopping 283,422 jobs, grow to and generate $2.3 Billion in tax revenue—both by 2020.2

The same study predicted that the sector as a whole will grow to $24.1 Billion by 2025.

But in order to maintain the course in order to get to $24 Billion, companies will need to meet the demands of these three key developing areas:

– Our first and favorite sector may surprise you since it is not actually the cultivation, it’s going to be way bigger, and we’ve found a company that is widely undiscovered as noted below in our first example:

  1.  BETTER TESTING AND EXTRACTION

    Company: Abattis Bioceuticals Corp (CSE: ATT – OTCQB: ATTBF)

    Mkt Cap: $15.21M

    Still very early in its company’s story, Abattis has wisely burst onto the scene as a tester.  Wasting no time in getting its cannabis testing facility opened in Langley, BC, ahead of Canada’s full-scale legalization4 of cannabis expected by July 1, 2018, Abattis swiftly got itself into the game and already has garnered revenues.

    Abattis Bioceuticals’ subsidiary Northern Vine Labs opened its doors in May 2017, to serve the rising demand for cannabis testing. The company had been pursuing that license since 2014, and officially became licensed in October 2016.

    What is cannabis testing?

    In order to maintain quality control, and meet both regulatory, and market demands, cannabis laboratories test for potency, purity, and details such as terpene counts. Testing also protects the consumer by screening for contaminants such as bacteria, heavy metals, and unapproved pesticides.

    (For more information on Health Canada’s mandatory testing on medical cannabis click here. )

    For the 52 licensed producers in Canada, Health Canada introduced random testing to address these issues. Abattis’s facility is just 1 of 30 approved facilities in Canada, and one of the eight in BC’s lower mainland. Even better, Abattis is the only company available on the public markets, making it a solid choice in this sector. Once recreational cannabis becomes available in mid-2018, everyone will have to use a facility like what Abattis already has a leg up on, so keep that in mind while the PPS is low here.

    “Abattis Bioceuticals is one of very few publicly listed companies with comprehensive testing and extraction capabilities. They are also one of only 30 Health Canada approved labs able to handle cannabis for all forms of testing.”

    Demand for cannabis testing is big and getting bigger fast.

    The global cannabis testing market is expected to grow at a compound annual growth rate of 11.5%, culminating towards a $1.42 billion market by 2021.5

    In order to hit the shelves, producers will need to have an accurate depiction of the drug’s potency, including the levels of the most sought after medicinal components of cannabis, THC and CBD. To do that, even the mega producers will require a third party to test their product before it goes to market.

    Abattis is smartly staking itself as a leader in the testing field, having built a lab, and staffed it with industry experts to ensure the quality standard they promise the sector.

    The Northern Vine Labs facility will not just be used for testing, however. Another major component to the facility will be in extraction and formulation.

    This means that the company will be involved in innovation of methods to extract medicinal components from cannabis on a massive industrial scale, and to formulate them for consumer products.

    As a cooperative arm of the company to run in conjunction with Northern Vine Labs, Abattis has formed another subsidiary called Vergence, in order to market and sell natural, safe, and effective health products.

    Those products will target reducing pain caused from inflammation, boost immunity, and increase nutrient absorption. As natural remedies, these products will likely reach the market faster than a pharmaceutical product would, without the lengthy and costly clinical trials.

    According to the CBD Report published by The Hemp Business Journal, the US hemp-derived CBD market will total approximately $115 million this year, with an estimate to grow to $2.1 billion by 2020.6

    Abattis is tight-lipped about its ability to extract cannabinoids and terpenoids from cannabis at its facilities, however, it hasn’t been shy about hinting that it aims to be a leader in the extraction space. There’s a possibility that extraction will overtake testing as the company’s primary revenue model in the future.

     

  2.  MORE MEDICAL USES

    Company: Cara Therapeutics (CARA)

    Mkt Cap: $495M

    After a wild month that saw Cara Therapeutics rise to $26 per share, and plummeting to $12 per share within a week, this giant is on its way back to stardom.

    The bounce back came on the announcement of encouraging data from its phase 1 trials of oral CR845, as a treatment for pain and itching in patients with chronic kidney disease and undergoing hemodialysis. All tested doses were well tolerated when administrated daily.

    This came as a relief for shareholders after they saw the value of the company drop upon the same drug’s treatment for patients with osteoarthritis (OA) of the hip or knee. Lower doses achieved statistical significance. Only the highest dose received statistical significance. It’s still possible based on those results to test higher doses for significance.

    Medical marijuana sales, from pharmaceutical extracts to medically cultivated flowers, currently make up the lion’s share of the cannabis sector. Medical sales in 2017 are projected to grow to $5.3 billion in 2017, and account for 67% of total cannabis sales.2

    That means that medical cannabis patients are outspending adult-use consumers at a nearly 3 to 1 basis.

    While medical sales are projected to exceed $13.2 billion by 2020, the medical share of the total cannabis sales is expected to drop to 55% of all sales as well.

    Much of that has to do with the recreational legalization in larger states, like California, and in holiday states like Nevada.

    As cannabis stocks fly, the developers of new medicinal applications and products stand to make the most gains.

    While Cara fluctuated during its trials, new drug development was the reason that AXIM Biotechnologies (NASDAQ: AXIM) absolutely crushed it in 2016-17.

    As stated earlier, the average marijuana stock rose 332% over the last year.

    Much of that increase is skewed by the meteoric rise of AXIM Biotechnologies, whose year-over-year increase was 2,363%.

    You read that right.

    A large portion of that success can be attributed to the development of AXIM’s CanChew Plus Chewing Gum, used for the treatment of irritable bowel syndrome—or IBS. Used as an alternative delivery system to inhalation, CanChew tapped into the act of chewing which bypasses the gastrointestinal system and improves the bioavailability of cannabinoids.3

    Because medical uses for cannabis are still in their infancy, there are plenty of repeatable AXIM-like stories out there yet to be told.

 

  1. ENSURING A SUPPLY CHAIN SURPLUS

          Aurora Cannabis – ACBFF, ACB

          Mkt Cap: $941.6M

Second only to Axim over the last year was top performer Aurora Cannabis (NASDAQ:ACBFF)(TSX: ACB), which grew 465% year-over-year, rising from a low of $0.30 to $2.59 and a market cap just a shade under a Billion, at $941.6 million.

The company’s well deserved move to the TSX from the TSX venture this week is a pat on the back for a solid year that included record yields at Aurora’s Mountain View County production facility, and on the anticipation of the opening of its 100,000+ kg Aurora Sky facility to be located near the Edmonton International Airport.

With the nearing completion of a third production facility in Pointe-Claire, Quebec, Aurora’s production capacity is skyrocketing.

But supplies are still lagging in the market as a whole, especially after shelves emptied rapidly in Nevada after the state began adult-use sales on July 1.

Supply issues reached such dire levels, that Nevada Governor Brian Sandoval had to issue a state of emergency to allow state officials to decide on new rules to ease the shortage.7

As Canada (where Aurora is headquartered) inches closer to nation-wide marijuana legalization, it’s doubtful that the country will encounter the same scale of supply problems that hit Nevada.8 Especially with massive production coming from companies such as Aurora.

With other major Canadian producers, such as Canopy Growth Corp. (TSX: WEED) growing for both the North American and German markets, it’ll be interesting to see how supplies meet demand on a global scale.

CAPTURING THE TREND

Cannabis has still not been registered as a medicine in any country, and only a small number of cannabinoid medicines have reached the market.

With over 100 cannabinoids, and over 700 other compounds such as flavonoids and terpenes, the cannabis plant is still barely understood, as the legality over researching it, and testing its benefits has provided hurdles until recently.9

Hence the need for new, better and more abundant research and testing capabilities to keep pace with the industry’s growth.

“In order to maintain this growth pattern, industry players will need to provide the market with More Medical Uses, Better Testing and Extraction, and to Ensure Supplies.”

Public perception of the drug has changed significantly over the past decade, with it being seen more favorably than ever.

According to a survey2 done by New Frontier Data and Full Circle Research this January, 55% of respondents believed “cannabis should be legalized, regulated and taxed like cigarettes and alcohol”, and an additional 26% believed it should at least be “legal for medical use with a doctor’s recommendation.”

In fact, only 9% responded that cannabis should be illegal. Overall, 63% of those surveyed believed that the federal government should legalize cannabis, and 86% believed it has valid medical uses.

In 2016, 4 out of the 5 US states that voted on adult-use of cannabis passed legalization initiatives, with an average adult-use vote of 53% in favour. And all 4 states that voted on medical use passed their initiatives, with an average medical use vote of 62%.

For those that still hold doubt to the growth potential of the cannabis sector, there’s really nothing that will convince you. Sales are growing significantly for retailers, even as more retailers hit the scene.

In order to maintain this growth pattern, industry players will need to provide the market with More Medical Uses, Better Testing and Extraction, and to Ensure Supplies.

If, as all of the indicators suggest, the industry continues on its staggering growth, the opportunity to take advantage of the emerging trends is here, now. The benefactors of the impact like Abattis Bioceuticals, stand to make huge gains, while the leaders like Aurora Cannabis and Axim can build an even bigger lead against competitors who must surely emerge.

 

For American News Group

By G. Joel Chury

Edited by; American News Group Editorial Staff

 

FOOTNOTES:

1 – Motley Fool (July 2017) – The Average Marijuana Stock is up 332% over the past year

https://www.fool.com/investing/2017/07/24/the-average-marijuana-stock-is-up-332-over-the-tra.aspx?yptr=yahoo

2 – New Frontier Data – The Cannabis Industry Annual Report: 2017 Legal Marijuana Outlook

https://newfrontierdata.com/wp-content/uploads/2015/11/CIAR_Webinar_FINAL.pdf

3 – YAHOO! Finance – AXIM Biotech: Cannabinoid Potential Worth the Complexity

https://finance.yahoo.com/news/axim-biotech-cannabinoid-potential-worth-130000914.html

4 – Toronto Star – Trudeau government to legalize marijuana by Canada Day 2018: reports

https://www.thestar.com/news/canada/2017/03/26/trudeau-government-to-legalize-marijuana-by-canada-day-2018-reports.html

5 – Markets and Markets (March 2017) – Cannabis Testing Market by Product & Software (LC, GC, Spectroscopy (MS, Atomic), Column, Standards, Accessories, LIMS), Service (Potency, Pesticides, Heavy Metal, Genetic Testing), End User (Lab, Pharmaceutical, Research) – Global Forecast to 2021

https://www.marketsandmarkets.com/Market-Reports/cannabis-testing-market-46932450.html

6 – Hemp Business Journal – The CBD Report

https://www.hempbizjournal.com/the-cbd-report/

7 – Fox News (July 2017) – Nevada marijuana supply running low, state of emergency declared, governor says

https://www.foxnews.com/us/2017/07/11/nevada-marijuana-supply-running-low-state-emergency-declared-governor-says.html

8 – Fortune Magazine – Here’s Why Nevada’s Marijuana Supply Can’t Keep up with Sales

https://fortune.com/2017/07/12/nevada-marijuana-taxes-shortage/

9 – The Medicine Maker (June 2017) – Cannabis Complex

https://themedicinemaker.com/issues/0617/cannabis-complex/

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