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written by reader What about SBOTF

By Anonymous Questions, January 12, 2016

Stellar Biotechnoloft was toted as liquid gold. It was around .40 cents when you reported on it. (I figured it out too and brought in at 25-33 cents). For me it was a pump and dump stock – I dumped within several days and made my margins at .80 cents. I saved a few hundred shares just for heck of it. It is now trading at $6 at its height it was at $18!!!

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SoGiAm
6 years ago

After 1:10 reverse stock split September 2, 2015 Best2ALL-Ben

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SoGiAm
6 years ago
Reply to  SoGiAm

So you have twenty shares left?

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Travis Johnson, Stock Gumshoe
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When I first covered the stock it was in the 65-70 cent neighborhood (which, after the 1:10 consolidation to get them uplisted to Nasdaq last Fall, would now be $6.50-7). It did top out around $2 during the heat of enthusiasm ($20 split adjusted). There were two big moves in the stock, the first brought on by the attention of a newsletter and some very self-promotional push by the company in 2013, the second about a year later when another widely-distributed newsletter got excited and promised it would be uplisting imminently and bringing great fortunes.

The stock has trended down in the absence of big newsletter or other promotional campaigns, in my experience, perhaps partly because they’re very expensive for a pharmaceutical supply company with a very slow production growth capability and a single product…. and from what evidence I can gather, the product is not anywhere near as expensive as the teaser ads have indicated it might be (it is available on the market now, though it’s used largely by labs and not — yet, at least — in commercial-scale new drugs or vaccines). It’s also very unclear what the demand would be from an actual product — how much volume would a new vaccine or other treatment using KLH actually require? This is one where I can’t understand the levers that move the business’ financial performance.

Things could change, of course, IF a major high-volume product that requires KLH is approved by the FDA and spurs a big demand increase and KLH, at that point, has significant pricing leverage. Those are big “ifs” and I don’t know what the chances are. I’d rather see them get some kind of royalty on future products, but I’ve never seen that mentioned as a possibility (perhaps because you cant’ patent the KLH itself, though I suppose they probably have patented their extraction method or their aquaculture method). My impression, and I’ve not followed the stock closely since the uplisting, is that getting “designed in” to a popular and approved new immunotherapy is probably their best bet for “success”, though it’s not clear what that would mean to them financially in any specific way.

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