Monday, June 20, 2011 8:46:10 PM
Anyone who has already invested in a few big winners can tell you that the pump is completely irrelevant. Pump newsletters use screening tools that sort for things like large percentage gains in a short time. And in penny stocks especially, that is often the result of pure fluff or hot air. But sometimes it's not.
Guess what!: When a company has the real goods and makes large percentage gains based on solid progress, it still appears on the newsletters' screens. Because those screens have no way of distinguishing (nor do they apparently care to) between real solid companies and pure fluff. Most of their customers are the momentum traders looking for fast money. We've seen some of them on this board: they brag about not caring about a company's fundamentals - because they really are not interested.
However some smart investors realize all this and check out the companies such newsletters pump. The overwhelming majority of the time, they're fluff and that's immediately obvious. But sometimes they hit on a real winner. The real winners are fairly obvious too and a bit of research confirms it: real products with real evidence and real signs of progress. Then you do some DD and dig deeper.
Everything the newsletter said was basically true with solid reality behind it: multiple products in progress, one market ready right now (awaiting only the expansion of the worm population. Plus a very real chance of another going onto the market as soon as this year. And both of them providing a very solid basis of security for development of the other products in progress.
KBLB has only been in existence for a little over 3 years and is already within spitting distance of profitability. That is a blistering pace! Most biotechs take 10 to 15 years to get to this stage IF they do, but most don't.
KBLB has a technology that shows the potential to truly dominate a huge market: the high tech fiber industry in a way that very few companies can.
That explains why today's stock newsletter did something almost unheard of for ones that cater to the momentum traders as it does: it was recommending KBLB as a LONG TERM investment (most of its readers probably had to look the term up to see what it means!).
All the "concern" expressed here about pumping is pure diversion, IMHO. Even the best early stage companies get "pumped" by such newsletters. And I suspect that most of those showing such great concern about the "pumping" know that very well. "Guilt by association" is what it's all about, IMHO, because that's one of the few things you can do when there is little genuinely wrong about a company. (About the only other thing is to attack the financing: because every single startup company has to use less than ideal financing (because there is simply no collateral for a traditional type loan) there are always aspects of the financing that can be made to appear to be serious problems just by (very inappropriately) comparing them to conventional financing. We've seen a lot of that here, IMHO, even though the financing arrangements are far better than for most companies at this stage (for reasons also discussed at great length here).
The science so far is great. And the zinc finger technology from SIAL/SGMO has an awesome track record (in stark contrast to the greatly inferior zinc finger technology used by other companies - don't make the mistake of confusing the two!). As I've pointed out before and explained in great detail: if the ZFs don't work on the first try (in a very small percentage of cases they don't) then they almost certainly will on the second: because of the complexity of the zinc finger "addressing" system, sometimes they need to be "tweaked" a bit. No big deal, just a few weeks delay is all. (So if it happens, consider it a windfall and buy shares from the ill informed who sell in panic. It's what the street calls a "buying opportunity").
IMHO, the fact that a stock newsletter may be "pumping" is about as irrelevant as anything could possibly be. What IS relevant is that KBLB has the real goods.
Guess what!: When a company has the real goods and makes large percentage gains based on solid progress, it still appears on the newsletters' screens. Because those screens have no way of distinguishing (nor do they apparently care to) between real solid companies and pure fluff. Most of their customers are the momentum traders looking for fast money. We've seen some of them on this board: they brag about not caring about a company's fundamentals - because they really are not interested.
However some smart investors realize all this and check out the companies such newsletters pump. The overwhelming majority of the time, they're fluff and that's immediately obvious. But sometimes they hit on a real winner. The real winners are fairly obvious too and a bit of research confirms it: real products with real evidence and real signs of progress. Then you do some DD and dig deeper.
Everything the newsletter said was basically true with solid reality behind it: multiple products in progress, one market ready right now (awaiting only the expansion of the worm population. Plus a very real chance of another going onto the market as soon as this year. And both of them providing a very solid basis of security for development of the other products in progress.
KBLB has only been in existence for a little over 3 years and is already within spitting distance of profitability. That is a blistering pace! Most biotechs take 10 to 15 years to get to this stage IF they do, but most don't.
KBLB has a technology that shows the potential to truly dominate a huge market: the high tech fiber industry in a way that very few companies can.
That explains why today's stock newsletter did something almost unheard of for ones that cater to the momentum traders as it does: it was recommending KBLB as a LONG TERM investment (most of its readers probably had to look the term up to see what it means!).
All the "concern" expressed here about pumping is pure diversion, IMHO. Even the best early stage companies get "pumped" by such newsletters. And I suspect that most of those showing such great concern about the "pumping" know that very well. "Guilt by association" is what it's all about, IMHO, because that's one of the few things you can do when there is little genuinely wrong about a company. (About the only other thing is to attack the financing: because every single startup company has to use less than ideal financing (because there is simply no collateral for a traditional type loan) there are always aspects of the financing that can be made to appear to be serious problems just by (very inappropriately) comparing them to conventional financing. We've seen a lot of that here, IMHO, even though the financing arrangements are far better than for most companies at this stage (for reasons also discussed at great length here).
The science so far is great. And the zinc finger technology from SIAL/SGMO has an awesome track record (in stark contrast to the greatly inferior zinc finger technology used by other companies - don't make the mistake of confusing the two!). As I've pointed out before and explained in great detail: if the ZFs don't work on the first try (in a very small percentage of cases they don't) then they almost certainly will on the second: because of the complexity of the zinc finger "addressing" system, sometimes they need to be "tweaked" a bit. No big deal, just a few weeks delay is all. (So if it happens, consider it a windfall and buy shares from the ill informed who sell in panic. It's what the street calls a "buying opportunity").
IMHO, the fact that a stock newsletter may be "pumping" is about as irrelevant as anything could possibly be. What IS relevant is that KBLB has the real goods.
Recent KBLB News
- Kraig Biocraft Laboratories Smashes Production Targets as New Spider Silk Batch Surges Past Expectations • GlobeNewswire Inc. • 05/26/2026 11:35:00 AM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 05/22/2026 08:30:20 PM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 05/22/2026 08:30:19 PM
- Kraig Biocraft Laboratories Highlights Technical Breakthrough of Its Immortalized Silk Gland Cell Platform • GlobeNewswire Inc. • 05/20/2026 11:35:00 AM
- Immortalized Silk Gland Cell Line Breakthrough Expands Kraig Biocraft’s Biotech Ambitions (KBLB) • IH Market News • 05/18/2026 03:12:33 PM
- Kraig Biocraft Laboratories Announces Breakthrough Creation of Immortalized Silkworm Silk Gland Cell Line with Broad Biotechnology Applications • GlobeNewswire Inc. • 05/18/2026 11:05:00 AM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/14/2026 08:31:50 PM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 05/14/2026 12:14:08 PM
- Form EFFECT - Notice of Effectiveness • Edgar (US Regulatory) • 05/14/2026 04:15:05 AM
- The Plastic Crisis Is Exploding and Kraig Biocraft Laboratories Has a Unique Answer • GlobeNewswire Inc. • 05/13/2026 01:05:00 PM
- Form POS AM - Post-Effective amendments for registration statement • Edgar (US Regulatory) • 05/11/2026 08:30:47 PM
- Kraig Biocraft Laboratories Commissions New Production Rearing Center to Support Accelerating Spider Silk Scale-Up • GlobeNewswire Inc. • 05/11/2026 11:05:00 AM
- Kraig Biocraft Laboratories Positions Itself as a Front-Runner in Spider Silk Race • GlobeNewswire Inc. • 05/07/2026 01:05:00 PM
- Kraig Biocraft Laboratories Launches April/May Production Cycle Following Record Spider Silk Output • GlobeNewswire Inc. • 05/04/2026 11:05:00 AM
- Form 424B3 - Prospectus [Rule 424(b)(3)] • Edgar (US Regulatory) • 04/30/2026 09:07:15 PM
- Kraig Biocraft (KBLB) Spider Silk Production Milestone Signals Progress Toward Commercialization • IH Market News • 04/30/2026 02:54:26 PM
- Kraig Labs Clears Dual Commercialization Milestones with Record Spider Silk Production and Successful Reeling Operations • GlobeNewswire Inc. • 04/30/2026 01:20:00 PM
- Kraig Biocraft (USOTC:KBLB) Hits 50% Production Milestone — Spider Silk Push Moves Closer to Commercial Scale • IH Market News • 04/28/2026 01:51:39 PM
- Kraig Biocraft Laboratories Reports Major Progress Converting Record-Setting Spider Silk Cocoon Production into Reeled Silk • GlobeNewswire Inc. • 04/28/2026 11:05:00 AM
- Form POS AM - Post-Effective amendments for registration statement • Edgar (US Regulatory) • 04/21/2026 06:41:52 PM
- Kraig Biocraft Laboratories Advances Record Production and Begins Processing 1.8 Metric Tons of Recombinant Spider Silk Cocoons • GlobeNewswire Inc. • 04/20/2026 11:05:00 AM
- The End of Performance at Any Cost, as Spider Silk Points to a Cleaner Future • GlobeNewswire Inc. • 04/15/2026 01:15:00 PM
