MNLO is just one pick of mine out of eleven stocks in my portfolio.
It was, without any doubt whatsoever, my largest winner yesterday.
For several weeks running I've been focused on building my position. For many years I've found that something somewhere in the depths of my hellish brain rears its head occasionally in my subconscious and insists that I move strongly. Thus it is that I've added 24,000 thousand shares of Menlo over the past few weeks. That's a whole lot of money to me.
Reading the SEC filing covering Edelman's 14% stake in the company held in his top ranked Perceptive Advisors fund, I knew I had to move swiftly yesterday morning as I wanted to round out my position to the nearest comfortable place. 200,000 is extremely comfortable, believe me! lol
For the benefit of those who follow me here at IHUB, this is the pick of a lifetime as far as I'm concerned. I'd feel very guilty if I didn't speak up now about this opportunity. So, then---here it is.....
Foamix was the vehicle I signed in on back in November. The resultant merger with Menlo was completed in February of this year. None of this matters now except for the fact that the public is confused as to what the new and improved MNLO is. Whereas the share price had been much higher a few months ago, we now languish in the $2 range.
MNLO shares traded at $7 on January 15th, of this year! Today we are barely above $2. So what happened?
The merger involved one company out of Israel and one out of New Jersey.
The Israeli company didn't have much by way of money but it had a promising drug pipeline. Menlo had plenty of money and its main drug in latter stages of clinical study would be coming up for FDA review soon after completion of the merger.
Their drug failed to demonstrate any desirable level of efficacy and was tossed out. Since that time MNLO management and directors have left the company and no longer represent anything resembling the earlier managerial makeup recognizably Menlo.
Left is the combined entity in name only that we recognize as Menlo. Foamix leadership is in full control of the company now. And MNLO's money remains
Over the past few months two of Foamix's drugs in the pipeline have come up for review and in each instance the FDA granted full approval with no reservations coming from the reviewing panels. The first of these drugs has been on the market since early this year and has already proved to be a noteworthy commercial success strongly outperforming expectations.
The second FDA approved drug is expected to launch its commercial life later this year. The same sales team as used for drug #1 (Amzeeq) and pathways covering manufacturing and related commercialization issues will be incorporated into drug #2's debut.
MNLO has made it clear there is to be a reverse split. It will be up to the BOD to determine the magnitude of the reverse while the boundaries range from 1 for 2 shares (1:2) to 1 for 7 (1:7). I'm expecting something towards the middle of the range---maybe 1 new share will equal 4 old shares. At today's valuation a new share would fetch $8. I'd prefer that the ratio be more in line with 1:15.
The value of the company will not change as a result of the split. Rather, the idea is only to bring our share value into a more realistic valuation in line with other biotechs out there. This will make us much easier to sell to large institutional entities not permitted to take positions in stocks valued at less than $5.
Now, there are companies out there that are permitted to take positions in companies whose stock falls into the penny stock category such as is the case with any stock available to trade at sub-$5 per share. One such company is led by Joseph Edelman, head of Perceptive Advisors.
Mr. Edelman is the acknowledged "Warren Buffet" of the biotech sector. His fund is the most highly regaled and respected of all out of many such firms committed to getting behind biotechs.
Going to Yahoo! you'll find the aggregated valuation ascribed to MNLO is $8.81. This is a far cry from the current $2.13 which includes the gain occurring last evening during the after hours session. Upside is enormously favorable for the new investor in MNLO as we're looking at a four bagger from here.
Friday evening someone here reported Edelman's Perceptive Advisors' having doubled down on MNL0. Truth be told, I'd forgotten Edelman had a position as I hadn't seen any activity on his part in recent months. However, for the past month or so I've been steadily adding, bringing my share count from 153,000 shares up to 176,000 shares. This week I sensed something would push shares considerably higher. I have no idea what I might have been sensing, only that a sixth sense was operating without my understanding and I'd damned well better heed the call. Friends know that I'll readily acknowledge that a stock will occasionally talk to me, like a sweet lady whispering something gently into my ear. I'll notice that although I may not do anything about it as my wife would be furious with me. lol
Then there's the earbells going off telling me firmly-- not gently---that I'd better understand right now that something is going to happen and I don't want to be left out in the cold. That's when I know I've got to straighten up and fly right into a meaningful position in the particular stock. Next we have that pretty young thing shouting, "Damn it, what do I have to do to get you to do something already?" When the lady screams at me, I know it's time to do the responsible thing NOW!
That explains my piling on thousands of shares over the past month. I was listening and more importantly, I was trusting her.
Friday evening an IHUB poster brought up Edelman's doubling down on his fund's stake in Menlo. I knew immediately that I needed to act posthaste and I did---adding shares in the after hours session. At 7am yesterday (Friday), I saw the SEC disclosure myself covering details of the transaction involving Edelman's Perceptive Advisors. I moved on opportunity without delay---bringing my position up to 196,000. I then realized it's time to go for the throat, and I set up a cash transfer from my bank to Ameritrade via ACH and I bought 4,000 more shares bringing my share total to the current 200,000 shares.
A couple of days ago I was underwater. As of today I am sitting on a gain of $49,919.99.
Now, some might say that's a big gain. I don't see it what way. What I'm seeing is that a few days ago I was dragging my butt through bloody streets same as everyone else. And now I've got value sitting in my account.
Much, much more important to me, though---is that this move towards prosperity hasn't even begun! Sure, a lot of shares will do better in a rising set of metrics than a smaller position. We know that. But I'm absolutely positive these shares are going to continue their rise. Will they become twenty bagger shares? I doubt it. But I do believe we will hit above $11.00 in less than a year from here. And even if the top is no more than a quarter of my projected valuation, it's still a double. That's more than $200,000 to me, hardly chump change.
I'm asking my readers to give this stock pick your most careful consideration as I believe it will change lives through enhanced prosperity. For a long time I've been a strong follower of Avita (RCEL). This hasn't changed in the least. I've got cash lined up ready to be applied to my RCEL position, now 62,000 shares deep. But there's no question in my mind---MNLO is the place to be right now! Not a month in the future, but now---like Monday. I won't be a buyer as I've got my dream position and the sweet young thing's voice isn't bending my ear. lol
And my wonderful wife trusts me to be straight up, always.
