Harry Newton's In Search of The Perfect Investment
Newton's In Search Of The Perfect Investment. Technology Investor.
8:30 AM Tuesday, July 19, 2005: Summer
is arid. Slow. Deal flow is the key. But there are zillions of Harry Newtons
looking for the perfect investment. This week:
+ One real estate syndicator cut me down by 60%.
+ A real estate loan syndicator cut me down by 32%.
were great deals.
Everyone is reading the latest Harry Potter. They sold 6.9 million copies in
the first 24 hours. But it won't mean much for publisher, Scholastic (SCHL)
because it's a small a part of their business. Darn.
So you keep nudging around.
I liked Cramer's pick last night of Caterpillar (CAT).
He said investors should buy Caterpillar before it reports "monster"
second-quarter earnings on Thursday. Cramer
said Caterpillar is "best of breed." (I like that concept.) The company
is also a play on oil. Caterpillar is the only company making equipment big
enough to get to shale oil. Oil companies want to get to the oil as quickly
as possible, and Caterpillar has the equipment oil companies need. The company
just split two for one. CAT closed last at $50.82. Don't chase it. At 8:20 this
morning it was bid up $1 5/8 -- a testimony to Cramer's growing power.
You can get a
recap of Cramer's 'Mad Money' show on TheStreet.com the following
Hana Biosciences appeals: It's a big event
when a tiny company finds an analyst willing to cover it. Hana (HNAB:OB)
found Griffin. Their first report -- all 56 pages of it -- is out. Griffin's
Based on multiple
valuation approaches, we are establishing a 12 month price target range of
$8-$12 per share for Hana. We believe Hanas management team is excellent
and well positioned to build a preeminent biopharmaceutical company. Additionally,
Hanas oncology portfolio includes two potential blockbuster drugs and
should provide Hana and its shareholders with a solid foundation for growth
and stock appreciation. We believe Hana will provide an excellent return to
its investors and therefore, recommend the stock with a BUY rating.
can be the most rewarding investment around -- if the drugs work. The valuation
of biotech stocks stair-steps up as it passes through hurdles -- Phase 1, Phase
2, Phase 3, FDA approval, doctor acceptance, market acceptance. The key is to
buy good drugs cheap. Hana's market cap at last night's $1.75 is only $32
million. That's cheap. It's not unrealistic for Griffin to project a market
cap of $320 million. Hana has three drugs focused on cancer (oncology) -- Talotrexin
(PT-523) a promising new generation, non-classical antifolate with
trials underway in Acute Lymphocytic Leukemia (ALL), Non-Small Cell Lung Cancer
(NSCLC), cervical cancer and solid tumors; IPdR, an oral prodrug for
pancreatic, gastric, colorectal, stomach, liver and brain cancers; and Ondansetron
Lingual Spray (OLS) for chemotherapy-induced nausea and vomiting.
Are you and I
capable of figuring if these drugs will be approved by the FDA, prescribed by
doctors and ultimately sell gadzilions. No is the simple answer. You do your
research. You meet the management. I've met them. I'm impressed. You figure
the odds. And cross your fingers. Hana's worth a fling, now. Remember you're
looking at two to three years for the blowout payout.
to convert currencies? The easiest way is Yahoo! Finance. Click
gullibility of idiots (like me): My friend,
the engineer, sent me that nonsense about cell phones and car door openers.
I didn't check. Had I, I would have learned: car door openers run on frequencies
much higher than cell phones can transmit. Cell phones are designed to send
voice. You can't transmit a car door opener on a cell phone. End of story. Idiot.
scams work: Nine percent of U.S. Internet users have lost money on
e-mail scams, according to a survey of 791 users done for Mirapoint. The survey
asked "Have you ever lost money to an e-mail scam?"
In short, be careful.
from the Muslim standup comic Goffaq Yussef, a Palestinian:
evening gentlemen, and get out, ladies.
+ On my flight
to New York there must have been an Israeli in the bathroom the entire time.
There was a sign on the door that said, "Occupied."
+ How many Palestinians
does it take to change a light bulb? None! They sit in the dark forever and
blame the Jews for it!
+ What do you say to a Muslim woman with two black eyes? Nothing! You told her
+ Did you hear
about the Broadway play, "The Palestinians?" It bombed!
+ Did you hear
about the Muslim strip club? It features full facial nudity!
+ What does the sign say above the nursery in a Palestinian maternity ward?
+ Why do Palestinians
find it convenient to live on the West Bank? Because it's just a stone's throw
+ Why are Palestinian
boys luckier than American boys? Because every Palestinian boy will get to join
a rock group!
+ What does the
sign say above the nursery in a Palestinian maternity ward? "Live ammunition."
+ A Palestinian
girl says to her mommy: "After Abdul blows himself up, can I have his room?"
+ All turned on by biotech. Click
+ Steve Jobs Commencement Address. The text is available:
Click here. The full audio is available. Click
+ The March of the Penguins, an exquisite movie. Click
+ When to sell your stocks. Click
This column is about my personal search for the perfect investment. I don't
give investment advice. For that you have to be registered with regulatory authorities,
which I am not. I am a reporter and an investor. I make my daily column -- Monday
through Friday -- freely available for three reasons: Writing is good for sorting
things out in my brain. Second, the column is research for a book I'm writing
called "In Search of the Perfect Investment." Third, I encourage
my readers to send me their ideas, concerns and experiences. That way we can
all learn together. My email address is .
You can't click on my email address. You have to re-type it . This protects
me from software scanning the Internet for email addresses to spam. I have no
role in choosing the Google ads. Thus I cannot endorse any, though some look
mighty interesting. If you click on a link, Google may send me money. That money
will help pay Claire's law school tuition. Read more about Google AdSense,
here and here.