BAEA.OB: New Year’s resolution: Best Stock Pick for 2011.
I am a strong proponent of the Wall Street saying that it is not worth knowing what everybody knows. In order to succeed in trading and investments one has to find companies that are positioned for success by having exceptional products at the right time, and finding those companies before everyone else does.
Currently I'm worried about the speculative coloration of the rise in stock prices globally since the bottom of March 2009. I do not think the markets will continue rising as they have since then. My bias has again shifted temporarily to the bearish side, which makes me cautious about picking stocks in early 2011. With that caveat in mind, I am staying away from well known names, which are correlated to the stock market indexes, which in turn makes it even more sense than ever to look for “Diamonds in the Rough”.
Considering all of the above, my pick for 2011 is BAETA Corp. (BAEA.OB). BAETA Corp., a technology-enabled health improvement company, engages in empowering patients to elevate their role in the prevention, diagnosis, treatment, and recovery from illnesses. It develops healthcare information solutions for use by patients and healthcare professionals. The company’s flagship product, MyHealthTrends for Pain, is a pain management and assessment product targeted for chronic pain sufferers in the United States. It also offers MyHealthTrends for Weight Control to assist in weight loss and control; and MyHealthTrends For Smoking Cessation to help customers quit smoking. In addition, the company provides MyPillsOntime, an automatic medication reminder/dispenser system for consumer market.
In my opinion this stock represents the most lucrative opportunity for 2011. BAETA Corp is a speculative, low price issue, which went public just a few months ago. The company didn’t use investment banking syndicates in order to be listed, which means that financial institutions are not invested in it just yet. This means that if the big boys – such as the hedge funds and small cap mutual funds get involved, demand is likely to quickly exceed supply by a huge margin. Share prices do not usually wait for numbers to come through before they move higher. They move higher in anticipation of better earnings ahead. This should happen after the company reports numbers for the first and second quarter of next year.
So, how do we know that this company is going to succeed? First, the growth opportunities in the health care industry are obvious. The growing numbers of elderly, and the need for less expensive health care including pain management, will likely create industry growth of 15 to 20% during the next several years and decades. Second, the company is positioned to benefit from the US healthcare dollars shifting towards preventive care, as well as new regulations calling for zero dollars out of pocket for weigh control and smoking cessation- related doctor visits. Third, the management of BAETA Corp. is extremely impressive, which makes me feel much more confident in investing in the stock. Fourth, the company’s debt is miniscule compared to industry average and earnings potential.
BAETA Corp is currently trading at $1.20 per share with capitalization of $28M. Projected 2011 revenues will justify a stock price up to $3 to $4 per share. We are looking at up to 300% return on investment with relatively low risk and no correlation to the stock market. This represents one of those rare opportunities to get in a stock way ahead of institutions.
If you have a shopping list for 2011, BAETA Corp should definitely be on that list. I always look for the gift that keeps on giving; that's how I view BAETA Corp., which will produce a steady stream of income each and every quarter. The stock market is hard to predict, and from an orbital perspective, panics come and go. They always have. The technological arc of human history, however, can be seen to move in only one direction, and that is upward. BAETA is the company, which has unique products for the right time in history.
May your best trade in 2010 be your worst trade in 2011!
Dennis V. Leontyev
Mr. Leontyev currently serves as President of InterMarket Edge, Inc. He is the portfolio manager and oversees the day-to-day administration of the company.
Dennis Leontyev has over 15 years experience in the financial industry with expertise in trading and hedge fund management. He has consistently delivered outstanding returns regardless of market direction. Dennis is known in the hedge fund world for trading model development, risk management, and unique innovations in quantitative, technical and market neutral analysis. He has a substantial experience in equities, futures and options trading with proven and audited track record.
Prior to forming InterMarket Edge, Inc Dennis was a hedge fund manager at Telluride Asset Management, where he managed $50M in directional and market neutral strategies. Dennis had also held positions as a Senior Vice President of Chicago Analytic Capital Management overseeing long-term portfolios of institutional and high net worth clients as well as managing a short-term trading hedge fund; and as a Vice President of trading and brokerage at Commodity Resource Corp. Dennis received his undergraduate degree in economics and finance from the Institute of Economics and Finance in St. Petersburg, Russia.
Some of Dennis’s accomplishments include:
-Successful management of up to $50M diversified hedge fund portfolio specializing in futures, equities and options trading.
-Overseeing of core long-term equity portfolio of over $500M.
-Effective construction of directional and market neutral strategies on Equities, Equity Indexes, Bonds and Commodities based on Proprietary Systems and Indicators, Tape Reading, Sentiment, Inter-market and Volatility Analysis.
-Profile in Futures Magazine for extraordinary results in fund management.
-Contributing Author to “Master Traders” book, published by Wiley, 2006
-Training of individual and commercial traders in trading psychology, risk management, options strategies, technical analysis and propriety trading systems.
