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News for the Snoozers - Part 7

Monday, 23rd March 2015 09:14 - by Moosh

Cyprotex (TIDM: CRX)

CRX has been busy since 2014 with a lot of news going unnoticed by the market including the launch of new in-vitro non-animal testing procedures designed to test for skin and eye irritation.^1-6 These are important developments in the life of CRX since it acquired CeeTox in January 2014 because CeeTox had already been providing testing services to the Cosmetic and Personal Care industry prior to being taken over. It is also worthy to note that animal testing for cosmetics has been banned in the European Union so these tests which CRX now offer are essential and serve to complement the range of services originally provided by CeeTox.

Empyrean Energy (TIDM: EME)

It has been all quiet on the EME front lately, although we are due a fourth quarter 2014 operations/production update shortly. Those of you who are not snoozing may have noticed a recent Marathon Oil (NYSE: MRO) fourth quarter update on proceedings and seen that the Austin Chalk (AC) wells brought to production during 2014 was a total of 22, with another 14 more AC wells at various stages of development when this was reported in mid-February 2015. The first ‘Stack-and-Frack’ pilot has also begun so we now wait for the result of that.⁷ MRO has also stated that it will devote 41% of its total 2015 capital expenditure to proving up its Eagle Ford acreage (over 200 gross operated wells) so this is good news for EME since it has a minority stake in many of these wells.⁸ There was also a recent exercise of options at 8p by the Chairman of EME – given that the price of EME was below 8p when these were exercised, I reckon if the Chairman is happy to pay a premium for shares in his own company then I am extremely happy to buy up EME below 8p, especially given the rise in production that should materialise throughout this year.⁹

ValiRx (TIDM: VAL)

For those sub-penny lovers, VAL may be or become a favourite of yours. The company has a lot going on with biomarkers, clinical trials, and new patents being granted all over the world for their portfolio of compounds.^10-14 I’m not going to regurgitate what VAL can do much better than me on their own website – I understand the science behind their molecules so it’s just a case of waiting for the trials to happen and for them to hopefully have continuously positive outcomes.^15-18 While recent clinical trial success has focussed on VAL201, what does interest me a little more is VAL401 which has previously demonstrated a good safety profile with chronic usage – recent updates have also shown the compound to be tolerated in its reformulated state.^19-22 Given that clinical trials and regulatory processes can take many years to complete before a drug comes on to the market, especially for a new class of drug which is what VAL is developing, then I would consider playing the price swings of VAL and building up a freehold of shares on the long term. VAL states that the global prostate cancer market which VAL201 is targeting is a multibillion dollar opportunity if all goes well. Given that VAL is also targeting other cancer types with these compounds goes to show that this figure could well be massively undervaluing the potential of the company if the current (pre-)clinical trials all go to plan and are successful. Obviously at this stage it is high risk but it all depends on how you play it. It is very possible to work each price swing to build up a freehold of shares using small amounts of capital over the long term rather than go all in with a large chunk, but each to their own.

References

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.

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News for the Snoozers - Part 7

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