40% gains on Neuralstem, Inc. (CUR): How do we do it?
Today's Financial News - Posted September 15, 2009
Tiny stem cell stock Neuralstem, Inc. (AMEX:CUR) soared over 18% today. Hot Stock Confidential Members took solid gains!
by J. Christoph Amberger
Baltimore, MD — TFN: Small but breakthrough biotech drug maker Neuralstem, Inc. (AMEX:CUR) surged over 18% at times today. I watched our Hot Stock Confidential open position climb up to a gain of 39.4% over our logged entry price before I decided to do something about it.
These gains were powered by the belated response to a press release yesterday: According to the company, Neuralstem has “received notice of allowance from the United States Patent and Trademark Office (US PTO) for its patent entitled ‘Transplantation of Human Neural Cells For Treatment Of Neurodegenerative Conditions’, number 11/281,640.”
Neuralstem has developed technology to produce neural stem cells of the human brain and spinal cord in commercial quantities, “and the ability to control the differentiation of these cells into mature, physiologically relevant human neurons and glia.”
Yes, I originally recommended the stock (on July 29, to be precise) with the outlook “buy at levels under $1.15, for gains of up to 50%”.
In the long run, this technology has headline appeal—even if its drug falls flat in actual trials. I think we could net up to 50% gains by the time they announce FDA trials. Maybe even more.
But this is a small biotech… and as such likely to float in the wind. I’d rather bag 39% now and buy back later. (TFN’s Laura Cadden does this thing all the time… she has turned stocks like Micromet, Curis or Cerus into veritable ATMs for our premium-service members! Maybe her luck — skill! — rubs off on me…)
This stock is a prime example for our Hot Stock Confidential investing strategy: We look for “damn good stocks” — companies with strong products, strong management, strong stories! — and take a cautious position in them.
In this volatile market, we expect stocks to fluctuate. We’re willing to ride out adversity — to a point. We’ve compared this approach to playing Whack-a-Mole at your local carnival: You never know exactly when and where the little buggers will pop up… but as soon as they do, we’re there to either take instant profits (like on CUR). Or try and squeeze a hardy, hefty gain out of them via strategic stop losses.
We’ve done this kind of thing plenty of times this year: CUR is the 58th double-digit gainer we took for our members in 2009. And there’s a whole warren of other gainers waiting to be harvested!
If you’re not on board the HMS Hot Stock Confidential yet, rest assured there’s always a place for you in our midst! Just go here!
Next Article: TFN eNews 09/15/2009: Which bit of news was worth 40% gains?
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