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Lock in Gold Gain, Biotech Trade Still 'Brewing'
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February 2, 2024

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PDT

Dow Jones 13595.10 +27.23 9:34 am PDT, November 3, 2007 NASDAQ 2810.38 +0.00 For info, visit access.smallcapnetwork.com S & P 500 1509.65 +1.21 Change your subscription status here Russell 2000 797.78 +0.00 VOLUME 07 : ISSUE 103 Lock in Gold Gain, Biotech Trade Still 'Brewing'  In This Edition... 1) Time To Take Gold Profits  2) ENGM: Right Stock at the Wrong Time?  3) CEL-SCI's Back in the Limelight  We've got updates on today on three of our prior trading ideas. One's about an idea that went well enough to lock in a decent gain, the next is about an idea that went not-so-well (so far), and the last look is at a longer-term idea that's still brewing up. So, odds are at least part of today's newsletter merits a little reading.  However, you may also want to take a look at the sidebar (on the right) about Stockgroup Information Systems (OTCBB: SWEB). We wouldn't have known this yesterday morning when they released the good news about a partnership with Raymond James , but the last three days have been the highest-volume three days we've seen for SWEB since late June. We can attribute Friday's volume to the news, but it doesn't explain Wednesday's and Thursday's big volume. It has me curious - that's all.    Gold Shining Too Brightly Now?  I hope all of you were reading our blog back on September 24th. If you were - and took a little action based on our commentary - you most likely made a nice gain between now and then. At the time, gold futures were trading at 721.0. I set a target price of 810.0 that day...a potential gain of 12.3% (or much more if you applied the leverage of futures). Anybody 'in' will be glad to know gold reached a high of 811.0 on Friday. If you still happen to be 'in', I think I'd go ahead and lock down this short-term winner. Gold could still go higher, but it's pretty overbought right now. A little management of the risk-vs-reward dynamic could be prudent.  For those of you who don't have a commodities trading account, I also mentioned the StreetTracks Gold ETF (NYSE: GLD) as a way of tapping into the uptrend. It moved from 72.28 on September 24th to a high of 79.90 yesterday...a 10.5% gain. I know that's probably not going to mean the difference between you buying a yacht or not (unless you put a few million into the trade), but it ain't bad for six weeks worth of work. You can thank me later.  I think the lesson to be learned has nothing to do with gold , or even trading. The lesson here is just 'read the blog'. There's a lot more there than there is here in the e-mail newsletter, including trading ideas like GLD. Plus, it's interactive; you can post your own comments and questions. We publish and respond to every legitimate piece of feedback we get on the blog, so chime in at will.    Enigma: Right Stock, Wrong Time? You know, I have to call 'em like I see 'em...and I don't think I like what I see right now when I look at Enigma Software's (OTCBB: ENGM) chart. Things got off to such a great start when we issued our opinion back on October 6th. But, they faded just as quickly just a few days after that.  I think there were two basic challenges being faced here. The first is just limited trading activity. Low volume here may be steering some people away, for the time being. I believe the other (and probably bigger) issue is that the market just doesn't 'get it' yet. Enigma's 100% web-based revenue model is brilliant and creative, but being ground-breaking may have left other investors a little unsure of what they were really investing in. The good news is, both issues can be overcome. The question is, 'when?' More importantly, our suggested stop of 11 cents was violated on October 22nd when the stock hit 9 cents. Being a disciplined trader (even if nothing else), I take those kinds of things seriously. I hope you do too. If you do, then odds are you're also on the sidelines of the ENGM game right now. That may be the best place to be for now. In all fairness to the stock - as well as our readers - I just think it was a case of the right stock at the wrong time. Enigma's fiscal and strategic story is a good one that should be told; it just hasn't been told to enough people yet. For that reason, we're going to keep tabs on the chart and the company. I feel this one has the potential to be great. Like I said in a recent blog entry though, it just looks like the market wants to see more results first. So be it.  The bitter irony in all of this - on Friday, we saw huge volume, with an open and close near the high for the day despite an abnormally-deep (relatively) low of 6 cents. Between the hammer-shape for the chart and the spike in volume, part of me is now thinking 'pivot'. Could it really be the beginning of an upside move? That still remains to be seen, which means I'm remaining on the sidelines for now. I'll let you know if I see something compelling. Personally, I still think it's more a question of 'when' than 'if', but my conviction isn't strong enough right just yet to bet on it.    Is Something Brewing With CEL-SCI? I really think something's brewing with CEL-SCI (AMEX: CVM). They were pretty quiet for most of Q3, and our coverage of the stock was equally minimal. Over the last two weeks though, they overhauled their website, and were the focal point of a major research report.  The new website is a complete resource for all-things-immunotherapy. Despite the proverbial light at the end of the tunnel now coming into view for many immunotherapy developers, there's surprisingly little coherent information on the topic. CEL-SCI's site explains the ins and outs of this segment of the biotech industry, with their Multikine being the focal point.  I don't want to get on my soapbox today about taking a look at the new site for yourself, since I already made my soapbox speech in the blog back on October 30th. (See? Another reason to read the blog on a regular basis.) I'll just say this...the comprehensive site puts CEL-SCI in the role of being an immunotherapy authority. I think that's a long-term positive for the stock.  Anyway, the newest research report on CEL-SCI was done by Crystal Research Associates. It's available for free at the Crystal Research site (crystalra.com). Though fairly lengthy, I think it would be a good investment of time if you're serious about finding a fairly-untapped small cap opportunity. The report also includes a ton of details many of you have asked about in the past...things like patent information, marketing strategies, and a comprehensive explanation of where they fit into the industry (and history) of immunotherapy.  While we're on the topic, I want to refer you back to the October 20th edition of the newsletter...'Big Pharma, Small Biotech - Who Needs Who?". It's an op-ed commentary about the paradigm shift I see coming for the pharmaceutical world, but features CEL-SCI as an example of the new R&D model I think will eventually become the norm.  Have a great weekend everyone. It looks like the next edition will be coming out on Monday evening or Tuesday morning.      We Value Your Feedback   Got comments, questions or suggestions? Send 'em on over: Email the Editor If you wish to send a written request or inquiry, please send it to our physical address: TGR Group, LLC 4653 Carmel Mtn Rd Suite 308 #402 San Diego, CA 92130 Stockgroup Partners With Raymond James With almost all of the recent news from Stockgroup Information Systems (OTCBB: SWEB) being about the stockhouse.com site - which caters to retail investors - it could have been easy to forget the big fish the company is fishing for. Today's news of a partnership with Raymond James is a perfect reminder of their big-ticket offer...which is providing market-related data to financial institutions to pass along to their retail customers.  The last time we really looked at this revenue-bearing service up-close and personal was in January. As of then, 12 of Canada's top 30 brokerage firms were Stockgroup clients, while 4 of the United States' top 15 newspapers were clients. A handful more were added between now and then, but I don't think any of them were as big as today's Raymond James deal.  What you didn't read in the press release was this - Raymond James is among the best brokerage firms in the country...and they're only considered a regional firm. They've got $35 billion in assets, and it's one of the biggest 2000 companies in the world. Their research/advice is more than just top-notch too. A couple of years ago, a study showed the returns from Raymond James & Associates' stock recommendations ranked first among 26 leading firms over the past 10 years. Kanbay Research Institute named Raymond James one of the top 10 financial service companies in the United States among those favored by U.S. consumers. Translation: Raymond James is among the creme of the crop. For them to choose Stockgroup over any other option (and they certainly had them) speaks volumes about what Stockgroup can provide. So if the product is so great, why have we heard so little about it over last 10 months? Great question. Think about the target market here. This offer isn't pitched to the average retail investor who may be willing to pay $10 per month for a real-time quote service. What we're talking about here are six-figure (maybe bigger?) deals done by corporations for use on a massive scale. Plus, the programming and logistics alone in these partnerships can take months to iron out. In other words, the sales cycle here is a long one, because institutions need months to decide and implement this kind of stuff. I think that's why we haven't heard much about it. Now, I don't want to be too presumptuous, but I have to think there are more brokers out there also considering Stockgroup's technology - Raymond James just happened to be the first to sign a deal. Why do I think this? Two reasons. First, because Stockgroup has already signed multiple brokers as well as multiple newspaper sites. Second, I think there are other firms test-driving Stockgroup's stuff because the company has made it clear from the beginning that's the plan. I just don't see them wasting time or energy on something they don't plan on rolling out in a huge way.  As for the dollars behind the deal, I can only speculate that it's a six-figure opportunity. Stockgroup doesn't really provide details like that, for competitive reasons. However, based on my familiarity with the company's numbers, that's my educated guess about what this could fiscally mean. For a company doing about $15 million, a couple of deals like these can go a long way.  Here's the full press release.  Subscribe Information is power and timely information is profitable. Become informed and profit from Small Cap Network Profiles and Trading Alerts by becoming a Preferred Member today. There is no cost associated with your email subscription. 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