Well SCN folks, if you don't like the market one day, you may like it the next. That's the environment we're in, Mr. Toad's Wild Ride. We're still in a holding pattern with the major indexes. The recent selling of the tops and buying of the dips appears to still be in play but like I've said over the last few days, I don't think the risk reward for trading the indexes is quite there yet. However, today's gap up is a field goal for the bulls even though the markets have sold off since the open. A break of 2324 to the upside on the NDX would likely spark a nice healthy year-end rally but that remains to be seen. We'll know as soon as anyone if it's time to get long or get short. I do not suggest trying to short this market in the near-term, that could prove fatal for your trading account. Although the major markets don't appear to be yielding tremendous value at current levels, we've identified and uncovered a new Featured Stock that we are COMPLETELY enamored with. I highly suggest you have a hard look at today's newsletter and decide for yourself, but I'm telling you, I believe today's new idea is a winner in the making. It has all of the right components... stock price is way off its highs, fundamentally sound and in a high growth sector, and it's an idea I don't think is going to take very long to see some serious upside. If you've been around small stocks as long as I have, I think you'll agree ideas like this only come along every so often. The Next Generation of Pharma, Chromadex Corp. (CDXC) Two entities brought us Chromadex (CDXC), Liviakis Financial, a highly regarded 25 year old financial communications firm, and a well-seasoned individual investor who has taken more than a few companies from the depths of the OTCBB on to Major Exchanges resulting in huge returns for himself and his following. This is the value of the SmallCap Network. If it wasn't for these individuals, we'd likely had never discovered the potential investment opportunity Chromadex provides. Once we started digging into Chromadex and after a lengthy call with management, we were convinced CDXC is truly an undiscovered gem at current price levels. Here's a backdrop on the Company. Chromadex is a science-based company specializing in the high-growth natural products industry with a strong legacy business model that provides laboratory based R&D and Q&A for natural product fine chemicals (phytochemicals and Botanicals). It's first major proprietary product, pTeroPure (pronounced "tearopure"), has enormous potential in multiple market channels and when I say enormous, I mean enormous. More on that in a bit. After further research, Chromadex also has an incredibly strong and growing product pipeline along with significant intellectual property that is well ahead of the curve. I'm going to do my best to sum it up for the layman here. When major multi-national corporations like Pfizer, Kraft, Nestle, Estee Lauder and Herbal Life are interested in developing new healthy botanical or phytochemical ingredients for their new product lines, they retain Chromadex to do the science-based research and development of those ingredients. Although this has been their legacy business for years, it positions Chromadex in a very unique and compelling place within a multi-billion dollar industry. They know, before anyone else, what's going to be hot in the market place, what new research is revealing promising new botanical or phytochemical results, and an infrastructure to take advantage of all of it under one roof. Enter Chromadex. They have the IP to invent, create and produce next generation healthy ingredients and products for the health conscious individual. They say timing is everything and with where Chromadex is positioned, I don't think this Company's timing could be any better. We are all aware of the trends taking place in the U.S. with consumers and government demanding healthier alternatives and the increasing popularity of alternative medicine. A perfect example is Omega 3 (fish oil) and its impact on the body in so many positive ways. There have been numerous botanical and phytochemical studies in recent years that are tying cures and therapies for various disease and ailments that are proving at the very least to be just as effective and less toxic than traditional forms of western medicine. Chromadex is perfectly positioned to take advantage of this rapidly growing trend. Chromadex Brings Their IP to Market Chromadex recently launched their first fully commercialized proprietary product to the retail market, pTeroPure. pTeroPure pterostilbene, is a supercharged antioxidant found in blueberries. Chromadex's new product line, BluScience, harnesses the powerful effects of this protective agent to create products with unique benefits designed to support optimum everyday heath. Pterostilbene is a cousin of resveratrol naturally produced by blueberries to provide protection against environmental damage. Like resveratrol, there are animal studies showing its efficacy at promoting heart health and positively affecting the body's aging processes. This valuable antioxidant is only available in small amounts in each blueberry however, meaning an alternative source is necessary to bring clinically helpful amounts to you. As a high purity all-trans pterostilbene, pTeroPure satisfies that requirement. pTeroPure is nature identical, meaning it is the same as the pterostilbene found in nature, both in structure and function. pTeroPure is the only pterostilbene product to be used in human clinical trials and the only pterostilbene to have self-affirmed Generally Recognized as Safe (GRAS) status, a designation by the FDA that an ingredient in food is considered safe. Did you know pTeroPure is already quietly on the verge of being used in the market place? On June 28th 2011, ChromaDex announced it entered into a licensing and supply agreement with Cott Beverages, Inc. for the joint development of a clinically-backed, proprietary ingredient blend containing pTeroPure. The blend was initially targeted at the nutraceutical market but is also expected to serve the food & beverage and cosmetic markets. Cott is the world's largest private label beverage manufacturer and has distribution strength at major clubs and wholesalers like Costco, Walmart, Sam's, and BJ's. This is what I was referring to above. Chromadex already knows pTeroPure is a homerun in the making so they have launched their new retail product line, BluScience which is already being sold in GNC stores nationwide. You can learn more about BluScience by going here: http://www.bluscience.com/. Just for fundamental sakes, the functional food and beverages market and the nutritional supplements market was a combined 66 Billion Dollar Market in 2010. You can figure out what this means for Chromadex. It's probably worth noting, Chromadex (for its development of pTeroPure) was awarded Frost & Sullivan's 2010 "Most Promising Ingredient of the Year". "An ingredient with proven efficacy and safety that addresses the needs of multi-populations is bound to be successful... a sustainable production process and apt promotional, market positioning and penetration initiatives are likely to further bolster the ingredient's potential and future market acceptance." This is a nationally recognized award within the industry that most companies will never have the opportunity to boast. Ever heard of Alcone? Probably not, they're only the agency responsible for creating the Dos Equis advertising campaign, probably one of the top 10 ad campaigns in the last 10 years. The Agency earned the 2010 Advertising Agency of the Year Award. Guess who is going to be assembling the ad campaign for Chromadex's BluScience product line? Yup. Chromadex Fundamental Highlights Here's a laundry bullet list of reasons we believe every investor should consider owning CDXC at current price levels... pTeroPure, or Pterostilbene - the healthy part of blueberries - is being regarded as a wonder drug. But, pTeroPure is just the first of five potential blockbuster ingredients in the works. Uses include: Ingredients, Supplements, Food & Beverage, Retail supplement brand, Skin care, and Pharmaceutical. Named the 'Most Promising Ingredient of 2010' by Frost & SullivanIt's already launched through the BluScience supplement brand at GNC and hoepfully coming to Walgreens, Costco, Wal-Mart soon (one capsule = 500 cartons of blueberries)Potential opportunity of $205M million for ChromaDex as a dietary supplementDeal struck with Cott to add it to the Cott line-up of drinks (Cott's the biggest private-label beverage maker in the world)Healthcare/pharma uses [and these are patented by ChromaDex] include lower cholesterol, oxidative stress reduction, non-melanoma skin cancer, cosmeceuticals. University of Mississippi is conducting clinical trials for cholesterol, blood pressure, oxidative stress, while UC Irvine jointly owns skin cancer patent with ChromaDex.Non-melanoma skin cancer market is $450/annually, while U.S. sunscreen market is $800 million market. Neutrogena's Helioplex sunscreen line does $65M annually in the U.S. The potential opportunity of $15-$30 Million for ChromaDex in skin care. On Cholesterol-pharma front, Lovaza (a Pharmaceutical-grade fish oil for heart health did $150 million in its first full year (2006) and is now selling over $1 billion globallyExpected to achieve FDA-allowed (no objection) Generally Recognized as Safe - or GRAS - status by mid-2012 (increasing marketability as an ingredient)Expected to be able to make FDA-allowed 'Qualified Health Claim' of "lowers cholesterol" by mid-2013All these proprietary ingredients are IP-protectedAlso has the legacy service and products business, which will continue to growDemand for natural products industry expected to reach $155 billion by 2015 (CDXC already has presence here, through service & products)FDA is implementing new and higher GMP (good manufacturing process) standards for dietary supplements, raising need for reference standardsGoing from trailing 12-month revenue of $8.3 million to an estimated $100-$130 million within 3 to 5 years (long-term up to $600 million) No debt to speak of (218K), and more than $2 million in cash (vs. market cap of $47 million) Dr. Philip Frost owns nearly 20% of the company: http://people.forbes.com/profile/phillip-frost/8850 CDXC - The Stock and the Conclusion Chromadex went public back in 2008 and ran as high as $5 bucks per share. Like most companies, things take longer than normal and sometimes financings aren't always favorable for a small public company. With that being said, the stock currently trades around the $.65 cent level. Why do I think now is the right time for the stock? I'm a contrarian by nature. The chart shown here provides a picture that I believe is worth a thousand words. See the huge leg down on December 7th on massive volume? That was the capitulation point and in my opinion, a solid bottom in the making. Based on where this Company is headed, their revenue growth projections, the industry space they're in and the timing of their new product developments, I think this is a no brainer. However, I will reiterate on this particular idea that if you think you can wait around for a better price, my own personal opinion is you're not going to get one. I bet the investors at $5, $4, $3, $2 and $1 would love the opportunity for a fresh shot at this stock at $.65 cents. That's why I'm here telling you about CDXC now. I love this opportunity as I don't think the stars align with small stocks like this very often. From a technical and fundamental perspective, I truly believe CDXC is going to be a big winner for SCN Members. If you want more info, we've set up the Stock HQ Hub for CDXC. There's a video, corporate presentation, downloadable research report and so much more for you to do your own diligence and research. This Company is the real deal. This will become the destination for all information SCN Members and Contributors who are publishing or looking for more info on CDXC. Questions or comments? Fire away... Just don't tell me this newsletter was too long. I already know that but I think it simply reflects how we feel about CDXC.