MABVAX THERAPEUTICS - logoMabVax Therapeutics (MBVX) is a promising biotech company that recently uplisted to the Nasdaq Capital Market and received noteworthy investments from Dr. Phillip Frost and OPKO health (OPK).

The company presented at the Rodman & Renshaw Global Investment Conference earlier this week, and will be presenting in San Francisco at the BIO Investor Forum in October.

 

In the video below MBVX President and CEO, David Hansen, discusses the company’s exciting near and longer term drivers, as well as:

  • MBVX’s unique vaccination development capabilities
  • Focused on, but not limited to pancreatic cancers
  • Collaborations with Memorial Sloan Kettering, Rockefeller University, and Heidelberg Pharma
  • Promising early results from antibody therapy treatment
  • New diagnostic/imaging study beginning
  • Advantages of using a fully human antibody for new drug development
  • Pancreatic cancer and the unfortunate very rapid progression of the disease with extremely high mortality, despite the newest drugs on the market today
  • Strength of the MabVax intellectual property moat, and more

 

 


See also: MabVax Therapeutics (MBVX): A Compelling, Strong Buy with Multiple Near Term Positive Drivers

MabVax Therapeutics: Investor Presentation

Seeking Alpha: MabVax Therapeutics – Looking For A Needed Pancreatic Cancer Breakthrough

MabVax Therapeutics web site


MBVX will also be releasing new trial data on both the treatment drug and the imaging drug studies later this month. We will update subscribers as soon as the the data is public.


Best wishes for profitable investing!

GeoSpatial Corporation - GA siggy

MABVAX THERAPEUTICS - logoIn my previous article on MabVax Therapeutics (MBVX) last week, “MabVax Therapeutics (MBVX): Promising Early Results in Treatment of Pancreatic Cancer, I wrote about a near term positive driver in the upcoming release (expected  this month) of data from the Phase I trial of lead drug development candidates MVT-5873 (Therapeutic Agent Study) and MVT-2163 (Imaging Study).

In this article, I’ll share other considerations that make MBVX shares a compelling and STRONG BUY.

These include:

  • Recent NASDAQ uplisting
  • Cash position/no near term stock offering/dilution needed
  • Noteworthy investments from Dr. Phillip Frost and OPKO health (OPK)
  • Development pipeline
  • Strength of management team
  • Strong chart technical indicators

MabVax Therapeutics (MBVX) Share Information

Shares outstanding: 5.6 million
Approximate float: 3.8 million
Close on 9/6/16: $5.30
Market cap: ~ 29.7 million

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MabVax Therapeutics is developing novel human antibody based products for the diagnosis and treatment of metastatic solid tumor cancers. MabVax has created a platform technology to discover antibodies from patient immune responses against their cancers. The company has a portfolio of fully human antibodies that are being developed to address unmet medical needs in several difficult to treat cancers such as pancreatic, small cell lung, sarcoma, ovarian, and breast cancer.
MabVax Therapeutics’ lead antibody development program is HuMab-5B1 The company started two clinical trials this year with a therapeutic agent (MVT-5873) and as a new generation PET imaging product (MVT-2163). In addition, MabVax has identified a radioimmunotherapy agent (MVT-1075) and plans to file an Investigational New Drug Application (NDA) with the FDA later in 2016.

Nasdaq - MabVax TherapeuticsMabVax Therapeutics uplisted from the over-the-counter market to the Nasdaq Capital Market, effective August 17th. While the benefits of this uplisting are known to most investors, they bear repeating.

The listing opens MabVax Therapeutics up to an entire market of institutional investors that previously could not buy the shares. Some institutions won’t touch a stock trading below $5/share, regardless of the exchange. With MBVX trading at/near that $5 point, and an update on Phase I trials of two lead drug candidates, expect that participation to increase as more institutions discover the stock. It’s not hyperbole to say that pancreatic cancer pharmaceuticals are typically blockbuster drugs, and as MabVax progresses lead candidates in the FDA trials, institutional participation should ramp considerably. Additionally, there are many retail investors who won’t touch a stock trading under $5 as well.

The Nasdaq Capital Market requires higher standards of  corporate governance and transparency to be in place for listed companies, another obvious benefit for shareholders. The bottom line here is that the Nasdaq Capital Market listing is very positive for MabVax Therapeutics and shareholders going forward, and buying shortly after the uplisting, (as in right now), is just plain good old fashioned common sense investing.


MBVX is Well Capitalized Following Recent Raise

Pharma and biotech stocks are cash-intensive and the need for a near term capital raises is a consideration. Buying shares after a recent raise is often the best way to avoid a dramatic drop in share price, plus unwanted dilution.

Fortunately, MabVax just completed a capital raise of $9.4 million and (from my discussion with management) the company now has access to approximately $16 million in cash. The present cash burn is about $1 million/month, so chances of near-term dilution are slim to none. This is a time when I love to buy biotech and pharma stocks! I hate surprises and dilution…who doesn’t?


Noteworthy Investments from Dr. Phillip Frost

As many reading this are aware, Dr. Phillip Frost is a well known and highly respected biotech investor. Often referred to as “the Warren Buffett of biotech”, his investments in MBVX shares began back in April, 2015, See: “MabVax Therapeutics Catches Eye of Billionaire Investor Dr. Phillip Frost and OPKO Health“.

Dr. Frost and $5B market cap OPKO Health (OPK) added shares of MBVX in the just-completed capital raise. If you peruse the SEC filings from April 2015-present, you’ll discover that Dr. Frost and OPKO Health now have an approximate 15% stake in MabVax Therapeutics. As a shareholder of MBVX myself, I like that.


Ability to Develop Multiple Blockbuster Drugs with HuMab-1 Antibody

Due to the properties of MabVax’s HuMab-5B1 antibody, drug development is not limited to a single cancer type. The 5B1 antibody has demonstrated high specificity and affinity, and has shown potent cancer cell killing capacity and efficacy in animal models of pancreatic, colon and small cell lung cancers.

The antigen the antibody targets is expressed on more than 90% of pancreatic cancers making the antibody potentially broadly applicable to most patients suffering from this type of cancer.

HuMab-5B1 was derived from a patient vaccinated with MabVax vaccine licensed from MSKCC

  • Patients repeatedly vaccinated to drive immune response against cancer antigen
  • Patient samples obtained at maximal response
  • HuMab-5B1 chosen because of optimal characteristics
  • Patient outcomes
    – Seven Stage IV patients vaccinated in 4Q08 and six are still alive (median: 197 weeks post-vaccination)
    – Patient from whom derived the HuMab-5B1 antibody remained disease free at 5+ years

The HuMab-5B1 antibody has ideal characteristics that enable development of a broad commercial platform of cancer drugs:

Characteristic Technical Description Advantage of HuMab-5B1
Targeting cancer cell Specificity Exquisitely specific; only recognizes the target on cancer cell
Binds tightly to target cell Affinity Binds quickly to cancer cell and is slow to come off
Cytotoxicity ADCC and CDC Antibody has potency to kill cancer cells through normal cell killing mechanisms
Does not target normal cells Immunohistochemistry Ability to avoid on target off tumor activity that could raise undesirable side effects
Additive effect with chemotherapy Synergy Improves potency of standard of care chemo therapy by 50% in early studies
Ability to attach additional agents Conjugation Very easy to attach a radiolabel for PET imaging or a radioactive isotope to make a radioimmunotherapy product or to attach a toxin payload to make an antibody drug conjugate (ADC)
Benign side effect profile in animal toxicology studies Clear GLP Toxicology The infusion and activity of the antibody did not cause unanticipated or worrisome side effects in our pivotal toxicology studies in primates
Precision medicine platform Directive agent for multiple products Precisely targeting cancer cells allows for localization of immunotherapy, companion diagnostics, and molecularly targeted payloads for more potent therapies

Due to the positive characteristics of MabVax’s HuMab-5B1 listed above, the drug pipeline in chart below and collaborations with Memorial Sloan Kettering Cancer Center, the NIH, Heidelberg Pharma, and Rockefeller University could be just the beginning:

MabVax Therapeutics pipeline


Early Results Beat Blockbuster Drug Paclitaxel (Taxol) in Small Cell Lung Cancer

Early studies from the MVT-5873 trial, (which management will be giving an update on in September), show that doses of 25mg/kg and 50mg/kg of MVT-5873 resulted in a greater slowing of tumor growth than 10mg/kg of Paclitaxel alone.

Moreover, the combination of MVT-5873 with Paclitaxel demonstrated a strong synergistic effect on Paclitaxel alone in slowing lung cancer tumors.

  • Keep in mind that because MVT-5873 is based on MabVax’s HuMab-5B1, side effects to date have been benign/minimal.
  • Also keep in mind Paclitaxel remains a widely prescribed chemotherapy drug and the market capitalization of MBVX is a mere $29.7 million today.

 

MabVax Therapeutics vs. Placlitaxel

 

 


Early Results also Show Much Greater Slowing of Tumor Growth when Combined with Current Standard of Care Drugs for Metastatic Pancreatic Cancer

 

MabVax Therapeutics Pancreatic Cancer efficacy

 


Strong Patent Moat

The major claims of patents awarded to MabVax Therapeutics to date cover composition of the vaccine, methods of treatment, chemical modification of antigens, and synthesis.

11 issued patents and 3 pending applications in the U.S.
– Issued patents covering monovalent and polyvalent vaccines, methods of manufacture,
methods of use
– 2 pending applications covering monoclonal antibodies
14 international patents and 3 pending applications
– Issued patents covering monovalent and polyvalent vaccines, methods of manufacture,
methods of use
– 2 pending applications covering monoclonal antibodies
Orphan drug designation available for vaccine and antibody products
– Received U.S. FDA ODD in Sept 2014 for neuroblastoma vaccine


Highly Skilled, Veteran Management Team with Extensive Drug Development and Commercialization Experience

The management team’s experience in drug development, joint ventures, and drug commercialization/product launches adds exceptional value that will be realized by more institutions as the company continues to be discovered on the Nasdaq Capital Market.

 

Founder and CEO, J. David Hansen
David Hansen has more than 30 years of industry experience as a biopharmaceutical industry executive, having held senior management roles in both private start-up companies as well as small to mid-sized public companies. His senior level experience includes executive management, finance and accounting, corporate development, sales and marketing. During his career, Mr. Hansen has executed a wide variety of in and out licensing agreements, research and development collaborations, joint ventures, divestitures, and acquisitions. Mr. Hansen has expertise in the therapeutic areas of immunology, oncology, and infectious disease. Mr. Hansen gained executive management experience at several life sciences companies prior to co-founding MabVax Therapeutics that make him particularly suited for his leadership role. He was a corporate officer of Avanir Pharmaceuticals where he held the titles of Vice President of Commercial Development, Senior Vice President of Corporate Development, and President and Chief Operations Officer of the Avanir Subsidiary Xenerex Biosciences. Prior to Avanir, Mr. Hansen served in multiple roles at Dura Pharmaceuticals including National Sales Director, Director of Marketing, and Director of Business Development. He has additional management experience with Merck & Co. (Schering-Plough), Key Pharmaceuticals, and Bristol Myers Squibb.

Co-founder and Chief Science Officer, Philip Livingston, M.D.
Philip Livingston received his MD degree from Harvard Medical School and was Professor of Medicine in the Joan and Sanford Weill Medical College at Cornell University and Attending Physician and Member in Memorial Sloan-Kettering Cancer Center (MSKCC) where he treated melanoma patients and ran the Cancer Vaccinology Laboratory research lab for over 30 years until his retirement from MSKCC October 1, 2011. Dr. Livingston’s research focused on: identification of suitable targets for immunotherapy of a variety of cancers, construction of polyvalent conjugate vaccines specifically designed to augment antibody responses against these targets, and identification of optimal immunological adjuvants to further augment the potency of these vaccines. He has over 150 publications and 4 issued and 3 pending patents concerning cancer vaccines.

Co-founder and Vice President of Antibody Discovery, Wolfgang Scholz
Wolfgang W. Scholz, Ph.D. has extensive drug discovery experience in multiple therapeutic categories and has collaborated with major pharmaceutical companies on several projects. He was Senior Director at Avanir Pharmaceuticals, where he led research and development efforts for 8 years, and was a co-founder of Xenerex Biosciences, a subsidiary owned by Avanir Pharmaceuticals. Under his leadership, the antibody discovery group at Xenerex developed human monoclonal antibodies to multiple infectious disease targets using in vitro and SCID mouse technologies, and one antibody (AVP-21D9) was successfully out-licensed and recently passed Phase I safety testing. Prior to Avanir, Dr. Scholz held positions with increasing responsibilities at Tanabe Research Laboratories. Dr. Scholz is the principal investigator on multiple National Cancer Institute grants received by MabVax totaling almost $5 million. Dr. Scholz is an inventor on three pending and three issued antibody patents, three issued small molecule patents, and author on thirty-four peer-reviewed publications. Dr. Scholz earned his Ph.D. in Microbiology and Immunology from the University of Kiel, Germany in 1985 and completed his postdoctoral training at The Scripps Research Institute, La Jolla.

Vice President and Chief Business Officer, Paul F. Resnick
Dr. Resnick has an M.D. from The Medical College of Wisconsin and an MBA from The Wharton School of the University of Pennsylvania, and recently joined MabVax Therapeutics in April of this year. Prior to joining MabVax, Dr. Resnick was Senior Vice President, Business Development for Juventas Therapeutics, where he was responsible for business and commercial strategy and working with executive management overseeing corporate clinical development, and financial and business strategies. From January 2008 to January 2012 he was Vice President, Business Development for Intellikine, Inc. (acquired by Takeda Pharmaceuticals), responsible for managing alliances and leading the business development strategy that resulted in securing an acquisition by Takeda Pharmaceuticals. Dr. Resnick also held Senior Director positions for Worldwide Business Development, and for Strategic Alliances, at Pfizer Inc., where he was responsible for networking with leaders from biotechnology companies, universities, and research institutions to gain early insights into emerging technologies, and for leading technical and business diligence, negotiations, and alliance management of science and technology initiatives for Pfizer’s Biotechnology and Bio-innovation Center. Prior to Pfizer Dr. Resnick held Director and Senior Director positions at Rinat Neuroscience (acquired by Pfizer), Intermune, Inc. and Roche Pharmaceuticals.

Executive VP of Research and Development, Paul W. Maffuid, Ph.D.
Dr. Maffuid’s management experience includes global pharmaceutical organizations, developing biotechnology companies and contract development and manufacturing organizations. His senior level management experience includes leadership for product development, manufacturing and drug disposition. Throughout his career, Dr. Maffuid’s organizations were integral for research and development activities and represented by regulatory filings for biopharmaceuticals and small molecule therapeutics indicated for oncology, diabetes, CNS disorders and obesity. Dr. Maffuid served as Executive Vice President, Pharma Operations for AAIPharma Services Corporation and was a member of the Executive Team that transformed a declining business into a leading provider of integrated drug development services. His responsibilities included formulation, manufacturing, and analytical services for clients developing biologic and small molecule therapeutics. Prior to joining AAIPharma he was the founder and President of Biopharmalogics, Inc. a consulting company supporting the development of pharmaceutical products from 2008 to 2011. Earlier in his career Dr. Maffuid was Senior Vice President of Operations at Irvine Pharmaceutical Services, Inc., and Vice President of Pharmaceutical Development for Arena Pharmaceuticals. While at Arena Pharmaceuticals Dr. Maffuid was a member of the executive management team, was responsible for drug product and drug disposition research and development operations, and led the design and construction of a cGMP compliant pilot manufacturing facility. Dr. Maffuid’s management experience also includes Amylin Pharmaceuticals, Magellan Laboratories and Glaxo Research Institute (currently GSK).

Chief Financial Officer, Gregory P. Hanson
Gregory P. Hanson, CMA, has over 30 years serving as CFO/financial executive of both public and private biotech and hi tech companies. From January 2008 to February 2014 Mr. Hanson was Managing Director of First Cornerstone, a board and management advisory service to companies and executives in the areas of international corporate development, financing strategies, commercialization of technologies and products, and M&A advisory service. Since November 2009, Mr. Hanson has served as Advisory Board Member of Menon International, Inc. involved in commercialization of biosensor devices and assays, and renewable products. Since October 2011, Mr. Hanson has served on the Life Sciences Advisory Board of Brinson Patrick Securities, a boutique investment bank. He also serves as mentor and confidential advisor to several other tech and life sciences companies. Mr. Hanson is Past-President and 9-year Member of the Board of Directors of San Diego Financial Executives International (FEI), and a member of the Capital Formation Committee at BIOCOM since 2011.  Mr. Hanson served as Senior Vice President of Brinson Patrick Securities, where he opened up the San Diego branch and introduced at-the-market financing strategies to public life sciences companies. Prior to Brinson Patrick Securities, Mr. Hanson served as Senior Vice President and Chief Financial Officer of Mast Therapeutics (MSTX—NYSE MKT), and prior to Mast Therapeutics was Vice President and CFO, Chief Accounting Officer, Compliance Officer and Corporate Secretary of Avanir Pharmaceuticals, Inc. (acquired by Otsuka Holdings Co., Ltd.), the developer of the cold sore product Abreva™, and Neudexta™, for the treatment of Pseudobulbar Affect, a central nervous system disorder. During the course of his career, Mr. Hanson has completed approximately $1 billion in financing, licensing and partnering arrangements. Mr. Hanson was a founding and 6-year member of the Small Business Advisory Committee to the Financial Accounting Standards Board, and has spoken at various national conferences, industry organizations and panels on financing strategy and mergers and acquisitions, and twice spoken to the SEC’s Committee on Improvements to Financial Reporting. He has an MBA with distinction from the University of Michigan, and a BS in Mechanical Engineering from Kansas State University.


Chart Technicals

The MBVX chart looks strong here, with a notable increase in volume since the NASDAQ uplisting, accompanied by a rise in share price as recent lows bounced off the uptrend line.

MabVax Therapeutics stock chart

 

 

Keep in mind many institutions can not buy stocks trading below $5/share.  As MBVX continues to close above $5/share, investors can expect an increase in institutional participation.


Review of Near Term Forward Drivers

In addition to increased institutional participation following the Nasdaq uplist and low float (3.8 million shares), there are several positive drivers that should push MBVX shares higher during the remainder of 2016.  These are:

  • MVT-5873 (for treatment of pancreatic cancer) and MVT-2163 (a companion diagnostic) interim program milestones expected this month (with full Phase I readout mid-2017)
  • Plans to file IND for radioimmunotherapy program Q4 2016
  • Presentation and meetings with investors at the 18th annual Rodman & Renshaw Global Investment Conference in NYC 9/11-9/13/2016 (see brochure)

Conclusion

MBVX is a compelling buy here due to:

  • Recent NASDAQ uplisting leading to increased institutional and retail investor awareness and participation
  • Cash position/no near term stock offering/dilution needed
  • Noteworthy, repeat investments from Dr. Phillip Frost and OPKO health (OPK) for an approximate 15% stake in company to date
  • Strong drug development pipeline using HuMab-5B1
  • Strength of management team
  • Strong chart technicals
  • Near term positive drivers
  • Low float + tiny market cap ($28 million) with blockbuster pancreatic cancer drug development potential

 

I’ll be attending the Rodman and Renshaw conference in NY next week.  I look forward to meeting management of MabVax Therapeutics, and sharing more near term positive developments with subscribers!

Supplemental: August, 2016 Investor Presentation


Best wishes for profitable investing!

GeoSpatial Corporation - GA siggy

 

 


Disclosure/Disclaimer/Terms of Use

 

Part I of II: Expect Near Term Positive News on Lead Product Candidates from MBVX


MabVax Therapeutics (MBVX) Share Information

Shares outstanding: 5.6 million
Approximate float: 3.8 million
Close on 8/29/16: $5.00
Market cap: ~ 28 million

Repeat investments from Dr. Phillip Frost and OPKO Health (OPK) began in April 2015 and account for an approximate 15% stake in MabVax


Pancreatic cancers are extremely complex and, unfortunately, highly lethal.  According to the American Cancer Society the one-year relative survival rate is 20% and the five-year rate is 7% for all stages of pancreatic cancer combined. The 5-year survival rate for patients with metastatic pancreatic cancer is approximately 1 (one) percent.  This is a horrific disease in which survivability for the vast majority of patients is measured in weeks and months.

However, an area of research in pancreatic cancer treatment that shows initial and growing promise is in the development of immuno-oncology and cancer vaccines.  The American Cancer Society notes that:

“Immune therapies attempt to boost a person’s immune system or give them ready-made components of an immune system to attack cancer cells. Some studies of these treatments have shown promising results.”

and

“Several types of vaccines for boosting the body’s immune response to pancreatic cancer cells are being tested in clinical trials. Unlike vaccines against infections like measles or mumps, these vaccines are designed to help treat, not prevent, pancreatic cancer. One possible advantage of these types of treatments is that they tend to have very limited side effects. At this time, vaccines are available only in clinical trials.”


MabVax Therapeutics (web site) has shown early, promising results in clinical trials of immuno-oncology products developed from the human immune response to cancer, with an emphasis on pancreatic cancer.

MabVax’s HuMab-5B1 antibody is fully human and was discovered from the immune response of cancer patients vaccinated with an antigen-specific vaccine during a Phase I trial at Memorial Sloan Kettering Cancer Center. In preclinical research, the 5B1 antibody has demonstrated high specificity and affinity, and has shown potent cancer cell killing capacity and efficacy in animal models of pancreatic, colon and small cell lung cancers. The antigen the antibody targets is expressed on more than 90% of pancreatic cancers making the antibody potentially broadly applicable to most patients suffering from this type of cancer.
The HuMab-5B1 antibody has very good tumor targeting capabilities as well as being internalized by pancreatic cancer cells. These important attributes have allowed MabVax to use the HuMab-5B1 antibody as a tumor-targeting platform upon which we have created multiple products. The antibody itself is in a Phase I clinical trial as a therapeutic agent. This same antibody when combined with a radiolabel is a potentially new generation PET imaging agent and is also in a Phase I clinical trial. We are also developing more potent HuMab-5B1 based products such as a radioimmunotherapy product when the antibody is combined with a radioisotope and lastly, an antibody drug conjugate when combined with a toxin payload. While all of the mentioned products are based on the targeting capabilities of HuMab-5B1, each product has unique characteristics and potential uses for the treatment of multiple types of solid tumors.

Additionally, MabVax has:

  • an attractive, multi-pronged drug development pipeline
  • wide and expanding patent moat
  • recent (August 17th) NASDAQ uplisting 
  • low float (3.8 million shares)
  • significant and recurring investments from Dr. Phillip Frost and OPKO Health, Inc.
  • including recent capital raise, (closed August 22), MabVax Therapeutics can access $16M cash with a burn rate of ~ $1M/month
  • positive near term drivers- early data from promising Phase 1 studies of lead product candidates expected within 5 weeks

MABVAX THERAPEUTICS - logo

MabVax Therapeutics Holdings, Inc., a clinical-stage biopharmaceutical company, engages in the discovery, development, and commercialization of proprietary human monoclonal antibody products and vaccines for the diagnosis and treatment of various cancers. It has a pipeline of human monoclonal antibody products based on the protective immune responses generated by patients who have been immunized against targeted cancers. The company generates its pipeline of antibody-based product candidates from patients who have been vaccinated with propriety vaccines licensed from Memorial Sloan-Kettering Cancer Center (MSKCC). Its lead cancer vaccines targeting recurrent sarcoma and ovarian cancer are in proof of concept Phase II multi-center clinical trials. The company’s product candidates include 5B1 antibody program, 5B1 imaging program, and 5B1 antibody drug conjugate, which targets an antigen over expressed on metastatic pancreatic, colon, stomach, ovarian, breast, and small cell lung cancers. It also develops follow-on antibody products, including 1B7 and 31F9 antibody programs to the antigen GD2, which is over expressed on sarcoma, melanoma, and neuroblastoma. The company has collaboration agreement with Heidelberg Pharma GmbH, as well as a research collaboration agreement with Rockefeller University’s Laboratory of Molecular Genetics and Immunology. MabVax Therapeutics Holdings, Inc. was founded in 2006 and is based in San Diego, California.


Lead Product Candidates MVT-5873 (Therapeutic Agent) and MVT 2163 (Imaging Agent)

MVT-5873 (Therapeutic Agent Study)

The Phase I trial is evaluating the safety, tolerability and pharmacokinetics of MVT-5873 as a single agent or in combination with the current standard of care chemotherapy regimen in subjects with metastatic pancreatic cancer. The first group of patients will be enrolled in a traditional dose escalation regimen to assess safety, the pharmacokinetics and determine the optimal dose of the antibody. A second group of patients will establish the safety and optimized dose of the antibody when administered with a standard of care chemotherapy as a first line therapy for the treatment of patients with advanced cancer.

 

On March 21, 2016, MabVax announced the initiation of the Phase 1 trial of MVT-5873 in patients with pancreatic cancer. This is an open label, multi-center, dose escalation clinical trial with patient enrollment initiated at three clinical trial sites: Memorial Sloan Kettering Cancer Center (MSK) in New York as well as two sites within the Sarah Cannon Research Institutes network at the Tennessee Oncology site in Nashville, TN, and Sarah Cannon Research Institute at Florida Cancer Specialists in Sarasota, FL.

The initial cohort of patients will be treated with 1, 3, 6 or 10 mg/kg of MVT-5873 to determine the MTD. This dose will then be utilized in an expansion cohort of approximately 10 subjects to examine additional safety and PK parameters. For the combination study, the first cohort will be treated with one dose below the MTD with escalation up to the MTD. This dose will then be utilized in an expansion study where MVT-5873 will be administered alongside the standard of care chemotherapeutic agent gemcitabine.

See ClinicalTrials.gov for in-depth study information.


Positive Early Results Hinted at in 10-Q Filing on 8/11/16: 

On page 24 of the 10-Q filing for the quarter ending June 30, 2016, MabVax Therapeutics disclosed (in relation to MVT-5873) that:

“Of the nine patients who have been dosed to date, five have been treated for three or more months and investigator observations have noted stable disease for a subset of those patients. We are continuing to escalate the drug dose to assess safety and reach an MTD and anticipate initiating the second portion of the trial where our drug is dosed in combination with chemotherapy in the fourth quarter of this year.  We expect to have the preliminary results of this clinical trial later in the third quarter in 2016.”

Now, a “stable disease for a subset of those patients” (with late-stage, metastatic pancreatic cancer) could be a very positive near term driver.  Expect a press release on these exciting early results by end of the current quarter…within the next 5 weeks based on the SEC filing. 


MVT-2163 (Imaging Study)

As a bit of background, part of the reason pancreatic cancers are so lethal is because they typically cause no symptoms, or (at best) vague symptoms in the earlier stages. As a result, the diagnosis of pancreatic cancer is most often made at a very late, metastatic, stage IV disease.

Widespread screening, (analogous to mammograms for breast cancer or colonoscopy for colon cancer), is not practical for this less common cancer. However, improved diagnostic imaging tests can be extremely useful in high-risk groups, such as those with a strong family history of pancreatic cancer.

Simply put, the earlier this devastating  disease can be identified and aggressively managed, the better the chance for survival. Because of this, MabVax Therapeutics received a $1.75 Million contract for development of the HuMab-5B1/MVT-2163 Imaging Agent from the National Institutes of Health (NIH).

The Phase I clinical trial for MVT-2163 (see ClinicalTrials.gov)  was initiated in the second quarter of 2016 at Memorial Sloan Kettering Cancer Center for the Company’s new generation fully human immuno-PET imaging agent. In this Phase I trial, the safety, pharmacokinetics and biodistribution of MVT-2163 is being evaluated in patients with pancreatic and other CA19-9 positive cancers. The trial will determine the ideal dose and conditions for an optimal PET scan image.

MVT-2163 has demonstrated high-resolution images of tumors in xenograft animal models, potentially making it an important new tool to aid in the diagnosis, monitoring and assessment of patients with pancreatic cancer and an attractive companion diagnostic for the MVT-5873 therapeutic product.

 

Mabvax Therapeutics - study


Like the early results from the MVT-5873 study, MabVax Therapeutics plans to provide an update on MVT-2163 in the near term according to the August 11th 10-Q filing which states:

“Investigator observations showed scans potentially highlighting smaller metastatic sites not seen on standard CT scans.  These results are preliminary and require more patients to confirm.  We expect to have the preliminary results of this clinical trial later in the third quarter 2016”


Clearly there are exciting times ahead for investors in MabVax Therapeutics, and more significantly, some cause for optimism in the future treatment of pancreatic cancer.

 

See Part II: MabVax Therapeutics (MBVX): A Compelling, Strong Buy with Multiple Near Term Positive Drivers

See also: MabVax September Investor Presentation

 


GeoSpatial Corporation - GA siggy

 

 


See Disclosure/Disclaimer/Terms of Use

GeospatiaGeospatial Corporation logo - Copyl Corporation (GSPH), a 3D underground infrastructure mapping solutions provider and Google for Work Technology Partner, released video showcasing their cloud-based SaaS at GeoUnderground.

  • Loading stock data...

 


Geospatial Corporation CEO, Mark Smith, stated today that:

Geospatial continues to make substantive progress applying our underground mapping technologies and adding unique features to our powerful yet easy to use GeoUnderground Software Solution to accurately map critical underground infrastructure in both position and depth (3D). The strong interest in the country’s deteriorating infrastructure creates a growing need for Geospatial’s underground infrastructure services. As a Google for Work Technology Partner we are expanding our marketing efforts which should continue to yield promising results.


Geospatial Corporation - google logoGeospatial was selected by Google as the only Google for Work Technology Partner that offers 3 dimensional underground mapping solutions.

Since passage of the PIPES Act of 2016 which requires certification, data management, testing and mapping of all types of the more than 2.6 million miles of buried energy pipelines across the USA, Geospatial CEO Mark Smith informed me: “Inquiries have skyrocketed”.

 


Turning “Location” Only Competitors Into GeoUnderground Service Partners

Geospatial Corporation’s advanced 3D underground mapping technologies combined with GeoUnderground’s SaaS platform is a one-two punch to competitors. There is a world of difference between “locating” underground infrastructure in only 2 dimensions and 3 dimensionally mapping it. Location-only, 2 dimensional providers don’t convey depth of structures and accuracy is limited. This “location only” group would include engineering companies and companies that plant yellow flags and paint lines on streets prior to a construction project. It also over 60,000 conventional surveyors across the United States.

Between offering vastly superior data collection technologies for 3 dimensional mapping and being the only Google For Work Technology Partner for 3D underground mapping at GeoUnderground, Geospatial Corporation sees the thousands of 2 dimensional, location-only providers as future customers, not competitors.

It’s easy to see how the newly-launched Geospatial Partner Program could drive revenue growth going forward, especially as the PIPES Act of 2016 mandates the certification, data management, testing and accurate mapping of all buried energy pipelines in the USA.

 


Geospatial has collected many miles of infrastructure data for a wide variety of industries including Federal Agencies, Energy and Telecom companies and utilities, Municipal and Commercial clients, as well as, International clients.

Geospatial has worked for these pipeline operators and utilities who are among the largest in the world:

3D Underground mapping- GSPH partners


For more on Geospatial Corporation, see:

Geospatial Corporation Business Summary PDF

Article: New Federal Law Creating Big Demand for Geospatial Corporation (GSPH)

What Lies Beneath, by Geospatial CEO, Mark Smith


GSPH offers complete, precise 3D mapping solutions of our nation’s underground infrastructure.

With the PIPES Act now law, and with GSPH as the only Google for Work Technology Partner for 3D underground mapping, I look forward to writing in more detail on the accelerating growth at GSPH in the weeks ahead.

GeoSpatial Corporation - GA siggy

 

 


See also: Disclaimer,Disclosure,Terms of Use

 

 

Blue Line Protection Group logo

 

In early August, Microcap Research.com and Research Analyst Seth Golden introduced you to Blue Line Protection Group (BLPG), a company that aims to transform and bring about a watershed moment to the Cannabis industry.  As we further examine the potential for Blue Line and its shareholders, we become increasingly optimistic concerning the future results for all parties concerned. In this report, we will further explore the opportunity that lay ahead for Blue Line, while highlighting some of the advantages the Company currently maintains and will benefit from going forward.

Before we move forward, let’s briefly revisit the business of Blue Line to date:

Blue Line Protection Group provides consulting, armed security, compliance and investigations, transportation and secure vaulting services to banks, businesses and government entities who need to protect their assets, licenses and clients. Blue Line serves banks and credit unions by providing currency processing and transportation solutions, and its risk mitigation services help financial institutions serving cash-intensive industries comply with federal “know your customer” mandates. As of Q1 2016, some 84% of Blue Line’s revenues were derived from its armed protection and transportation services with 6% of total revenues coming from its compliance services business segment. The bullet points below serve to highlight some of the notable changes to Blue Line’s business since 2015 and under the regime of CEO Daniel Allen.  These business modifications will serve to scale Blue Line’s business regionally and most importantly, profitably.

  • Presently, Blue Line is the largest legal cannabis protection services company in the state of Colorado.  They have expanded their operation to include a new 12,000 sq. ft. facility to service the regional expansion of the legal Cannabis industry. By early 2017, Blue Line will have satellite operations in Illinois, Oregon, Washington, California, Nevada, New Mexico and Arizona.
  • The company has brought in a new CEO, Daniel Allen, more capable of advancing the Blue Line Protection Group business in accordance with the forecasted growth for the industry. Cannabis industry expected to grow at an annual rate of 30 percent. “The State of Legal Marijuana Markets” includes the prediction that the legal cannabis market will see a whopping $21.8 billion in total annual sales by 2020. http://www.arcviewmarketresearch.com
  • Blue Line has received an investment from Hypur Ventures, a Delaware limited partnership (“Hypur Ventures”) and entered into an ISV (Integrated Software Vendor) agreement with Hypur, Inc. https://www.gethypur.com This newly established relationship with Hypur is launching imminently and this is where the Blue Line Protection Group business finds itself entering a new era of growth and opportunity that is unparalleled, even in the cannabis industry.
  • Hypur’s software products, which were designed specifically to address the unique regulatory challenges presented by cash-intensive businesses, provide unprecedented transparency and accountability for financial institutions and regulators while offering legitimacy, safety and convenience for businesses and their customers.

 

As we continue to study and research the carefully monitored state of the legalized recreational cannabis industry, it becomes more apparent that the state of decriminalization is ever approaching.  Several states will have an initiative to vote for the decriminalization of recreational marijuana on the ballots this November.  Having said that, California as the country’s most populous state and the world’s sixth largest economy, will be voting on the issue of legalizing recreational marijuana this fall. Passing this legislation could encourage other states to follow and pressure the federal government to confront the issue head-on.  Presently, California’s medical marijuana industry is already worth an estimated $2.7 billion. To reiterate, that is just the value of the medicinal marijuana industry in the state of California.  Experts say that number would more than double if recreational use is allowed. Proponents say with a 15% retail tax on the drug, the California cannabis market could reportedly generate $7 billion a year. The opportunity for the state to collect additional tax revenues and for cannabis business operators to grow their existing medicinal marijuana business is undeniable.

The initiative to legalize recreational marijuana in the state of California failed to pass in 2010.  But when Californians defeated the legalization initiative six years ago, it was during a mid-term election. A recent poll shows nearly 60% of voters now support the measure.  Supporters say this year’s contentious presidential election is likely to attract younger, more progressive voters, which could help the initiative pass.

Should California pass the vote to decriminalize the use of recreational marijuana, the legislation will provide the following laws or guidelines for legislation:  The Adult Use of Marijuana Act (AUMA) initiative would legalize the possession of one ounce of marijuana flower, or up to four grams of cannabis concentrates for those 21 years and older. The cultivation of up to six plants would also be legalized, in addition to hemp production and a taxed and regulated system for a recreational marijuana industry.  Blue Line Protection Group and the implementation of their ISV agreement with Hypur will be at the forefront for driving compliance of cannabis business operators while facilitating the banking functions of said cannabis business operators.  Currently, some 70% of cannabis business operators go unbanked due to regulatory, compliance and Federal criminal classification of cannabis as a Schedule 1 narcotic.  Blue Line and Hypur have already spirited the technology to address these banking issues and will revolutionize the way banks engage cash-intensive business for the foreseeable future.

Moreover, California is just one of many states that will vote on the decriminalization of recreational marijuana in November of 2016.  The states of Nevada, Maine, Florida, Massachusetts, Arizona, Missouri and Michigan will all vote on the initiative in November, after acquiring the necessary signatures to get the issue on the ballot.  Additionally, Arkansas is currently gathering signatures. Arkansas has an August 25th deadline for the Secretary of State to certify initiatives.

If we extrapolate the potential regional growth in legal recreational cannabis operations we can easily recognize the potential for Blue Line Protection Group over the next decade.  But even if we limit Blue Line to the existing medicinal marijuana business operations in nearly half of the United States presently, we can understand that the company will be servicing more and more clients over the course of the coming years. More importantly, the services that Blue Line will offer clients will come with greater profits than ever before.

Blue Line Protection Group’s ISV agreement with Hypur will serve to add legitimacy to the legal cannabis industry and facilitate cannabis business operator’s ability to bank.  Hypur’s software solution will add levels of financial security for financial institutions and the cannabis business operators they hope to service for years to come. With 70% of cannabis business operators failing to achieve banking and financial industry partnerships, the risk to their business has been great since the decriminalization of recreational marijuana sales commenced a few years ago. Prior to Hypur’s software solution, financial industry participants that include regional banks and credit unions desired to service cash intensive businesses, but were unable to validate transactions occurring within the business and thus refused to service the cannabis industry.  Hypur’s software products, which were designed specifically to address the unique regulatory challenges presented by cash-intensive businesses, provide unprecedented transparency and accountability for financial institutions and regulators while offering legitimacy, safety and convenience for businesses and their customers.

For banking institutions aiming to participate in the lucrative cannabis industry, Hypur’s technology enables the banks to know their customer’s customer (KYCC).  Hypur’s Commerce solution tracks the source of every dollar coming into a cannabis bank account.  Blue Line’s ISV agreement with Hypur Ventures and its ability to vault and deposit the cash directly to the Federal Reserve on behalf of each financial institution, creates a chain of cash custody and a level of transparency that financial institutions have not had access to previously.

But of course Blue Line and Hypur Ventures aren’t the only enterprise aiming to provide banking solutions for the cannabis industry, right?

Blue Line Protection Group - pic

Where there is money to be made there will always be a competitive environment. With that understanding in place and historically proven to be the case, let’s further discuss these elements of competition and how Blue Line Protection Group is best insulated against the threat of competition.

Firstly, Blue Line’s integration of Hypur’s SaaS platform offers a complete solution of physical and software compliance tracking for each transaction taking place from their marijuana clients’ businesses.  No other competing product offers a total solution and with that Blue Line has advantaged its business model.  Blue Line offers all aspects of security and transporting assets for cannabis business operators while implementing all aspects of Hypur’s compliance based software solution to the benefit of both the cannabis business operator and financial institution. It is with this full-scale solution that Blue Line has distanced itself from competing solutions aiming to bank the legalized cannabis industry.

Kind Financial is an industry participant that has attempted to create a software and hardware solution that would take aim at the pain points of banking the cannabis industry. The company has attempted to incorporate kiosks that can be placed at dispensary locations.  Customers would be able to deposit cash in the Kind kiosk to pay for their purchase, in theory. Unfortunately what we have discovered with regards to Kind Financial is that the hardware solution/kiosk require the banks to underwrite the kiosk.  Additionally, the capital needed to place these kiosks and timelines for underwriting each kiosk have proven to be impediments to the Kind Financial business model.  This has forced Kind Financial to adjust its business model and focus more on compliance software. Kind Financial has teamed up with Microsoft to market this software to state and local governments that are trying to build compliance systems. Microsoft has no plans to participate in the cannabis commerce/retail industry and has openly stated it will not go near the cannabis plant, which means it will not participate with Kind kiosks. But even with the supportive relationship of Microsoft, to date Kind Financial has not secured a single government contract.

With the limitations of Kind Financial having been assessed, we better understand the barriers to entry when it comes to successfully banking the cannabis industry and why Blue Line and Hypur Ventures have integrated their respective physical services and software solutions.

Blue Line professional group - opic 2

Kind Financial found the cannabis commerce side of the industry to be more than it could handle and with this discovery has found itself more aligned with government solutions. It is possible that with the DEA failing to reschedule marijuana from its restrictive Schedule 1 narcotic status that Kind Financial will partake in further government compliance measures as the DEA has offered to take steps to make it easier for scientists to study the plant. When one door closes…

Tokken is another company taking aim at the potential billion dollar opportunity that comes with banking cash-intensive businesses like that of the cannabis industry.  Like Kind Financial, Tokken has also developed a software solution…with a monetary twist. Somewhat like PayPal or Venmo, Tokken will use the electronic money transfer system in the United States known as the Automated Clearinghouse, or ACH, to move money from the bank account of a dispensary customer to Tokken’s bank account. Tokken will then keep subaccounts for each dispensary, making it unnecessary for the banks to deal directly with dispensaries. Tokken transactions will be recorded on the ledger underlying the Bitcoin system known as the blockchain. Tokken clients can use funds to pay others in the Tokken system, such as vendors and contractors, or it can liquidate the funds for a fee. While Tokken is a software driven solution, the company will still have to partner with brick and mortar banking institutions for its bank accounts.  Bitcoin usage is less of a solution to an existing problem and more of a work around to the existing problem. The stigma that is often associated with the use of Bitcoin is akin to black-market operations, something done underground, between the lines and circumventing the legitimacy of legal monetary practices. Additionally, Bitcoin and the blockchain have been hacked on numerous occasions over the last several years. Most consumers won’t associate themselves with such currency constructs for all the reasons mentioned and it is why we don’t envision this Bitcoin business model of Tokken to be a long-term solution that will achieve the scale of Blue Line Protection Group.  Like Kind Financial, Tokken may carve out a small niche in the market for itself, but it will be of little consequence to the cannabis industry.  Lastly, Tokken has yet to launch, but will initiate a beta test of its software technology over the coming weeks in the Denver area.

There remain a few other, smaller private companies attempting and/or building their own version of “solutions” for banking the cannabis industry. These entities will find themselves disadvantaged when or if they ever come to the market as Blue Line Protection Group solidifies its first-mover advantage and leading edge service solutions.  It is often said that anybody can make a smartphone or coffee maker or an automobile. While that may be true that doesn’t mean they will be successful or profitable in doing so.  The first-mover advantage is often the greatest advantage a business model has when developing a new product or service solution.  As the first-mover builds a satisfied customer base, the first-movers brand is simultaneously established and tends to dominate a category or industry for years and decades to come. Amazon.com faces competition from every which direction imaginable, yet it remains the dominant e-commerce brand for consumers.  Fitbit faces competition from brands like Apple, Garmin and Under Armor and yet the company’s name has become synonymous with fitness tracker devices. Fitbit’s first-mover advantage still finds the company garnering some 80% of fitness tracker sales in the United States, even when faced with competing products from Apple and Samsung.  The first-mover advantage is a dominating economic moat around a business, especially when management executes soundly and delivers on their customers’ needs.

As we conclude these additional points of interest surrounding the Blue Line Protection Group business operation, we highlight that Blue Line and its ISV agreement with Hypur Ventures have already begun securing long-term contracts (3-year period) with cannabis business operators and financial institutions. Since our original initiation of coverage and reporting on Blue Line Protection Group, the firm has continued to secure additional banking contracts to service the cannabis industry in the most secure, traceable and compliant manner.  In the state of California and only last week, Blue Line Protection Group has landed a service contract with it’s first major banking institution. This summer and hence forth, the cannabis industry will be bankable and find financial support more achievable than ever before.  And Blue Line Protection Group shareholders will appreciate the service fees generated by Blue Line Protection Group’s services as follows:

  • For every $1 secured and/or transported by Blue Line from the cannabis business operator to the financial institution or Federal Reserve, Blue Line will assign a fee rate or basis points. Some of the contracted financial institutions already signed on with Hypur will require Blue Line to secure and transports tens of millions of dollars every single month. In California alone, the Company will be securing and transporting roughly $100mm a month.

With Blue Line Protection Group’s core business to date already growing revenues in the mid to upper 20% range, these additional revenue generating services will find the company in a strong financial position going forward. And don’t forget to keep an eye open when it comes time to vote. If only one state decriminalizes recreational marijuana sales during the fall, this could mean our modest sales forecast for Blue Line may be revisited to include additional revenues.

The business model that Blue Line Protection Group has evolved into is scalable and found to be with significantly improved gross profit margins when scaled.  And scale is what Blue Line Protection Group is aiming to achieve with its dedication to expanding its business into the states of California, Nevada, Illinois, Oregon, Washington and New Mexico in the coming months.  Blue Line Protection Group is not only paving the way for legitimate cannabis banking commerce, but it is solidifying its brand to be synonymous with cannabis commerce as a whole.  In the near future, when cannabis business operators discuss banking they will likely open the conversation with, “Who’s your Blue Line Bank”?


Seth Golden

22nd Century Group - logoThere’s no better time to jump on board a stock than when it’s breaking out above long term support on a flurry of positive news. This is especially true when additional good news and positive events are expected to drive volume and share prices higher. At MicrocapResearch.com, we believe that is the case with 22nd Century Group (XXII).


22nd Century Group, Inc., (web site), a plant biotechnology company, provides technology that allows for the level of nicotine and other nicotinic alkaloids in tobacco plants to be decreased or increased through genetic engineering and plant breeding. It develops smoking cessation products and modified risk tobacco products for smokers who are unable or unwilling to quit smoking and who may be interested in cigarettes, which reduce exposure to nicotine or to certain tobacco smoke toxins and/or pose a lower health risk than conventional cigarettes. The company’s products include RED SUN and MAGIC regular and menthol cigarettes; and SPECTRUM government research cigarettes. It is also developing X-22, a prescription smoking cessation aid, which is a tobacco-based botanical medical product for use as a smoking cessation therapy; and modified risk cigarettes, such as BRAND A, which has approximately 95% less nicotine than conventional tobacco cigarettes, as well as BRAND B cigarettes that contain low amount of tar per milligram of nicotine. The company was founded in 1998 and is headquartered in Clarence, New York.

 


 

Check out the increasing volume beginning this month for  the initial drive to $1,  followed by a consolidating pullback on lower volume to long term support,  and now charging above $1 again yesterday on increasing volume.

XXII chart

 

There are reasons for the chart above, mostly stemming from this very positive flow of recent news

There are other reasons why the stock is waking up here, reasons that we believe will push shares well above $1 in the near term… and we will be sharing those reasons with subscribers soon!

 


Best wishes for profitable investing,

GeoSpatial Corporation - GA siggy

 

 

Rapid sales growth on tap due to new requirements for 3D mapping of underground infrastructure.


Sometimes investors are fortunate enough to discover a company that is perfectly positioned to meet an urgent need that arises due to new state or federal legislation. Such is the case of Geospatial Corporation (GSPH), and I believe this stock may be one of the best performing in the small and microcap space during the remainder of 2016 and into 2017 due to reasons explained below.


Geospatial Corporation logo - Copy

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Geospatial Corporation at a Glance

Ticker: GSPH
Closing Price 8/12/16:  0.16
Market Cap: $23 million
Shares outstanding: 181 million
Insider ownership : 30%


Geospatial Corporation (web site) provides cloud-based solutions to locate and digitally map underground pipelines and other infrastructure in three dimensions in the United States. It provides data acquisition services to locate the exact position and depth of underground pipelines and conduits along with information on existing aboveground infrastructure. The company also provides data management services in which it manages clients’ critical infrastructure data through the licensing of its cloud-based GeoUnderground GIS (Geographic Information System) software. It serves contractors, municipalities, government agencies, utilities, telecoms, and engineering companies. The company was founded in 2007 and is headquartered in Pittsburgh, PA.
 


Huge Market, Urgent Need

Until recently, 3 dimensional mapping of underground pipes and infrastructure was a somewhat quieter, niche market. That changed dramatically on June 22 of this year when The PIPES ACT of 2016 was signed into law. This new federal law requires certification, data management, testing and mapping of all types of the more than 2.6 million miles of buried energy pipelines across the USA.

The law had major bipartisan support, and was in large part a response to the 2010 PG&E explosion in San Bruno, CA that tragically killed eight people, injured another 66 and destroyed 38 homes. PG&E was later fined a record $1.6 billion as a result of (among other deficiencies), a poorly maintained pipeline with faulty welding work that dated back to the 1950’s. A key problem was that PG&E did not have maps of the underground infrastructure organized and available to both the Company management before the incident nor for the Federal inspectors after the incident.

The lack of accurate maps of subterranean infrastructure is alarmingly common in the industrialized world, causing public service disruptions, project delays, cost overruns, property damage, injuries, and preventable fatalities that cost billions of dollars each year.  There is an urgent need for reliable data regarding the true locations of underground utilities as well as the need to effectively communicate this data to excavators.

“The United States has the most expansive network of energy pipelines in the world, and it powers nearly every facet of our daily activities. The network includes more than 2.6 million miles of pipelines, which transport 64 percent of the energy commodities consumed in the country. Therefore, ensuring that pipelines are a safe means to transport natural gas and hazardous liquids is essential.”

House Committee on Transportation and Infrastructure


Geospatial Corporation Solutions

It’s important to understand there is no single solution to address the underground infrastructure mapping, data collection/management, and data communication needs that oil and gas companies, electrical utilities, municipalities, and others are confronted with.

Geospatial Corporation utilizes a wide array of data collection technologies and has extensive experience with difficult and unique situations.

Geospatial CEO Mark Smith explains:

“There is no one technology or a silver bullet that will provide 3D mapping of every infrastructure for every industry. That is why it is crucial to have a strategic process in place that starts with assessing the situation and conditions of the area before determining which technology or combination of technologies to apply. As technological advances continue to progress, so will the feature-rich GIS management applications and the safety and security of our underground space.”
The state-of-the-art underground mapping technologies at Geospatial’s disposal are truly amazing and include:

  • in-line mapping systems
  • electromagnetic mapping systems
  • infrared & microwave technology systems
  • electromagnetic underground infrastructure location and mapping technologies
  • ground penetrating radar
  • vacuum excavation

Investors can read more about these technologies here.


The Only Google for Work Technology Partner for Underground Mapping

With the PIPES Act of 2016 now in place, an enormous competitive advantage for GSPH going forward is the fact that Geospatial Corporation is the only Google For Work Technology Partner that 3 dimensionally maps underground infrastructure. This needs to be stated again:

Geospatiol Corporation - google logoGeospatial Corporation is the only Google For Work Technology Partner that 3 dimensionally maps underground infrastructure.

 Geospatial Corporation recently launched an upgraded version of GeoUnderground (see web site). GeoUnderground is a mobile, lightweight, secure, and feature-rich web-based Geographic Information System (GIS) management portal providing a suite of tools that makes critical data available to customers in a user friendly platform.

GeoUnderground is a software-as-a-service (SaaS) model developed exclusively for web-based multi-users who need to manage and easily access critical infrastructure data. Customers gain two GeoSpatial Corporation- geounderground pickey benefits: their data is stored and accessible to authorized users via a secure centralized data repository, and it is delivered to them in an easy to use interface through their existing web browser.

Geospatial’s proprietary, cloud-based, 3-D mobile GIS mapping platform enables users to securely view, edit and share accurate x,y&z coordinates of buried pipelines, geo-referenced photos and mapping application. Users can view x,y&z coordinates of buried pipelines, geo-referenced photos and video of above ground attributes from a laptop, phone or tablet while in the field.

It’s important for investors to understand that the PIPES Act of 2016 not only requires accurate underground mapping of infrastructure, it also mandates secure information storage and information retrieval. I believe there is no company better prepared to meet this regulatory compliance than Geospatial Corporation.

CEO Mark Smith told me that:

Inquiries have skyrocketed since passage of the PIPES Act

and

 “As a Google for Work Technology Partner, our Data Acquisition Technologies and our GeoUnderground Solution is positioned for rapid growth.”

 


Turning “Location” Only Competitors Into GeoUnderground Service Partners

Geospatial Corporation’s advanced 3D underground mapping technologies combined with GeoUnderground’s SaaS platform is a one-two punch to competitors. There is a world of difference between “locating” underground infrastructure in only 2 dimensions and 3 dimensionally mapping it. Location-only, 2 dimensional providers don’t convey depth of structures and accuracy is limited. This “location only” group would include engineering companies and companies that plant yellow flags and paint lines on streets prior to a construction project. It also over 60,000 conventional surveyors across the United States.

Between offering vastly superior data collection technologies for 3 dimensional mapping and being the only Google For Work Technology Partner for 3D underground mapping at GeoUnderground, Geospatial Corporation sees the thousands of 2 dimensional, location-only providers as future customers, not competitors. It’s easy to see how the newly-launched Geospatial Partner Program could drive revenue growth going forward, especially as the PIPES Act of 2016 mandates the certification, data management, testing and accurate mapping of all buried energy pipelines in the USA.


Expect Strong Forward Sales Growth

Geospatial’s sales have been choppy from quarter to quarter and even year to year, but recent trend has been positive with sales of $181,000 in the most recent quarter more than double the sales for all of last year. I think investors can expect to see very strong sales growth going forward.

It would be difficult to overstate the significance of the combination of the passage of the PIPES Act, Geospatial’s cutting edge technology for 3D mapping, and the company’s enviable position as a the only Google for Work Technology Partner in the space.

Avenues for future revenue generation and growth include:

  • Gathering and accurately mapping subterranean data (required by PIPES Act of 2016)
  • Providing Software as a Service for access to data (required by PIPES Act of 2016)
  • Providing monitoring and change detection services in pipes
  • GeoUnderground partnership program & expansion to provide services on a global basis

Target customers include, but are not limited to:

  • Oil and gas companies
  • Municipalities (3D underground mapping of entire cities is an expected, near-term future trend)
  • Cable, telecom, water, and electric companies
  • Military bases, universities, airports, school systems
  • Global expansion potential (Geospatial has been approached by government agencies, national energy companies, water companies and domestic companies with international interests to discuss the implementation of infrastructure mapping and management projects in countries around the globe.)

 


Conclusion

Geospatial Corporation is an exciting company with best-in-class 3D underground mapping technology and a proprietary SaaS platform that looks like an ideal source for rapid revenue expansion as thousands of 2 dimensional, location only providers become GeoUnderground, 3D mapping data partners.  Being “the” Google For Work Technology Partner for underground 3D mapping at a time when federal law now mandates the certification, proper data management, testing and mapping of all of buried energy pipelines nationwide is competitive advantage that is unique to Geospatial Corporation.

Shares of GSPH are, for now, somewhat thinly traded and spreads can be wide. As a result, investors may prefer averaging into a position.

Having said that, nothing drives volume and share prices up like strong sales growth and improving fundamentals. Based on the evidence outlined above, that is exactly what investors should expect to see happen with shares of GSPH.

We will be following GSPH closely in the months ahead and expect a very strong and positive flow of information to come from the company that we look forward to sharing with our subscribers.


I highly recommend this additional reading: What Lies Beneath , by Geospatial CEO, Mark Smith.

See Also: Geospatial Corporation Business Summary


GeoSpatial Corporation - GA siggy

 

 

See disclosure/disclaimer/terms of use

Blue Line Protection Group logo


BLPG closed at .046 today
Market cap: 5.82M

The interview below is with Dan Allen, CEO of Blue Line Protection Group (web site) and covers:

  • Wide array of legal cannabis-related services provided by BLPG
  • New 12,000 square foot building with commercial walk-in vault
  • High caliber customers
  • BLPG anticipates “phenomenal growth over the next couple of years”
  • Cannabis sales growth in Colorado alone = 30%
  • Additional/new states coming on board
  • BLPG expansion plans  (Arizona, California, Nevada, New Mexico, Oregon, Washington)
  • Partnership with Hypur Inc. (see web site) for regulatory compliance services

Blue Line Protection Group - Hypur Inc.

 

See also: Banking The Cannabis Industry: A Groundbreaking Moment Comes Into Focus

BLPG revenue for the mrq was $651,831 compared to revenue for the year ago period (ending March 31, 2015) of $520,231 (SEC filing).

We expect those revenue numbers to continue to climb rapidly!


Blue Line Protection Group - coming up

Coming next week:

We will be releasing our report on a company that’s seeing a huge surge in demand coming from a very recent federal law that was passed.

The company (ticker: GSPH) is a leading provider of underground 3 dimensional infrastructure mapping solutions and underground infrastructure data access and storage.

Our nation’s underground infrastructure needs to be accurately mapped in 3 dimensions, (just like all above ground buildings and topography are mapped), and this little-known company is on the leading edge of this high-growth space. Stay tuned!

Blue line protection group - best microcap stocksTo get our free report next week, subscribe now!


Best wishes for successful trading and investing!

Matt Margolis - GA sig

Blue Line Protection Group logo


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Since going public in 2014, Blue Line Protection Group (web site) (BLPG) has undergone an operational transformation that will bring about several advancements in the legal cannabis industry and its operating results.  Blue Line Protection Group provides consulting, armed security, compliance and investigations, transportation and secure vaulting services to banks, businesses and government entities who need to protect their assets, licenses and clients. Blue Line serves banks and credit unions by providing currency processing and transportation solutions, and its risk mitigation services help financial institutions serving cash-intensive industries comply with federal “know your customer” mandates. As of Q1 2016, some 84% of Blue Line’s revenues were derived from its armed protection and transportation services with 6% of total revenues coming from its compliance services business segment.  But times, they are a changing, and this report will aim to disclose the potential future that lies ahead for revenue and profit growth for Blue Line Protection Group.

The legal marijuana industry is growing at an exceptional pace with sales totaling over $700mm in 2014 and $5.4bn in 2015.  Blue Line Protection Group benefitted from servicing the Colorado network of retail cannabis sales that grew to $996mm in Colorado last year.  It’s very clear that as voters in more states embrace legalized marijuana sales, the burgeoning cannabis industry has gone from a curiosity to a bona fide booming market. After growing legal cannabis sales by leaps and bounds in 2015, the market is expected to grow by a whopping 25% this year and reach $6.7 billion in total U.S. sales.

Blue Line Protection Group - chart of week

An ArcView Market Research report titled “The State of Legal Marijuana Markets” includes the prediction that the legal cannabis market will see a whopping $21.8 billion in total annual sales by 2020.

“I think that we are going to see in 2016 this next wave of investors, the next wave of business operators, and people who’ve sort of been watching or dipping their toe in, really starting to swing for the fences and take it really seriously,” ArcView CEO Troy Dayton said in an interview.

With sales for the cannabis industry booming and legalization of recreational cannabis sales now extended to four participating states, and more to legalize in the future, Blue Line Protection Group has taken steps to solidify itself as a leading service provider to the industry.  As noted within, one of the biggest revenue drivers for Blue Line over the last several years has centered on protection and assisting with maintaining legal operating compliance for participating cannabis retail sale operators known as dispensaries.  The cannabis industry has largely been a cash-intensive industry and as such comes with a host of risks. Securing cash and cannabis-related product assets has been one of the biggest risks and headaches for dispensaries throughout the industry since decriminalization began. Blue Line’s armed guard, transportation, vaulting and general cash processing services have helped cannabis retail operators secure their businesses. The company offers a fully integrated approach to managing the movement of cannabis and cash from growers through dispensaries via armed and armored transport, money processing, vaulting and related credit.  Money processing services generally include counting, sorting and wrapping currency. Presently, Blue Line is the largest legal cannabis protection services company in the state of Colorado.  They will be expanding their operation to include a new facility to service the Nevada region in the near-term. By early 2017, Blue Line will have satellite operations in Illinois, Oregon, Washington, California and Arizona.

Given the rate of growth in the legal cannabis industry that will likely grow further and regionally across North America, Blue Line has adjusted to these growth rates in several ways.  Firstly, the company has brought in a new CEO, Daniel Allen, more capable of advancing the Blue Line Protection Group business in accordance with the forecasted growth for the industry. All of the company’s operations and revenue since 2014 have derived from the state of Colorado and generally centered on the business operation of providing security and transport services.  With more states adopting legalized cannabis operations and sales, Blue Line will be expanding its business operations in a more scalable manner and will include the state of Nevada. In March 2015, the wholly owned Nevada subsidiary, BLPG, Inc., was granted licenses to provide services in Nevada. Additionally, Blue Line has received an investment from Hypur Ventures, a Delaware limited partnership (“Hypur Ventures”) and entered into an ISV (Integrated Software Vendor) agreement with Hypur, Inc.  This newly established relationship with Hypur is launching imminently and this is where the Blue Line Protection Group business finds itself entering a new era of growth and opportunity that is unparalleled, even in the cannabis industry.  The details of this strategic relationship will be explored further in this analysis, but first let’s take a closer look at what areas of the Blue Line Protection Group business are designated for future growth.

As mentioned earlier in this broad-scale analysis of the Blue Line Protection Group business, scalability has been hard to come by for the company.  The armed guard security business is one with very little profit margin and a high degree of liability.  News headlines have been littered with stories of armed guards being slain in the line of duty, servicing the cannabis industry.  Additionally, this business operation comes with very few barriers to entry and as such doesn’t lend itself to long-term profitability and/or viability. Lastly, moving such a business operation from state to state as decriminalization of recreational marijuana pushes forward is capital intensive.  And for all of these reasons, when Daniel Allen set forth to right size and look to scale the business of Blue Line Protection Group he analyzed the aspects of the business that could be scaled and developed through strategic relationships. In a June 1, 2016 Letter to Shareholders Mr. Allen detailed the aspects of the business that would not only be scalable, but also be able to drive top and bottom-line performance to the benefit of the company and its shareholders.

We’ve identified very specific areas where we provide our clients access to the requisite services: stable banking relationships, cash management and vaulting services, real time tracking of cash and product, fully electronic payment platform, physical compliance audits, and licensing services, just to name a few. These services, along with others, are strong top- and bottom-line revenue drivers for the business and are completely scalable.” 

One of the biggest problems facing the cannabis industry is that while certain states have legalized the selling of medicinal and/or recreational marijuana, the Federal Government does not recognize the operations as being legal as it centers on the selling of a Schedule 1 drug.  As such, most banking and financial institutions are not able or willing to “bank” the cannabis industry participants, even in legalized states.  The result is that 70% of cannabis companies don’t have a bank account. The few banks that do take on marijuana clients do not advertise what they’re doing. And this is where Blue Line’s ISV (Integrated Software Vendor) certification with Hypur comes into play.

Hypur extends the reach of traditional banking systems by providing financial institutions with the technology software solutions they need to provide banking services to cash-intensive businesses safely and profitably. Bringing legitimate businesses and transactions back into the banking system makes it easier to differentiate them from those with bad intentions.
Blue Line Protection Group -Hypur

Hypur’s software products, which were designed specifically to address the unique regulatory challenges presented by cash-intensive businesses, provide unprecedented transparency and accountability for financial institutions and regulators while offering legitimacy, safety and convenience for businesses and their customers. Hypur was founded by banking, financial compliance and software entrepreneurs in 2014.  The firm is led by Founder/Chairman/CEO Christopher E. Galvin, and his leadership team brings a wealth of banking, payments, financial, legal, marketing, technology and management experience to the company.

As a certified Hypur integrated software vendor (ISV), Blue Line is now able to provide an electronic platform for consumer payments and regulatory compliance  tracking. Blue Line’s mobile tablet-based compliance investigations platform, providing location inspection and inventory verification assessments for financial institutions, is now certified through Hypur’s “fintech” infrastructure.

In short, Hypur’s technology helps U.S. banks and credit unions serve cash-intensive businesses and their customers safely and profitably.  The legalized marijuana industry is a very cash-intensive business, and no team of industry professionals understands the banking hurdles that have besieged the marijuana industry better than Hypur.  For example, John Vardaman, who serves Hypur as Executive Vice President & General Counsel, brings fifteen years of senior federal government experience working on some of the most challenging issues facing the financial services industry. With his expertise from the regulatory side of the issue, John is ideally suited to advance Hypur’s mission of making it feasible for financial institutions to service high-risk industries in a manner consistent with their compliance obligations. First at the Department of the Treasury and then at the Department of Justice, John played an instrumental part in devising federal policy for enforcing Bank Secrecy Act (BSA) and anti-money laundering (AML) laws. Notably, John was actively involved in drafting DOJ guidance regarding financial crimes related to state legalization of marijuana, one of the few policies on the enforcement of federal law with respect to marijuana-related businesses. John was also instrumental in devising DOJ policy regarding the enforcement of laws governing the structuring of financial transactions.

Blue Line’s solutions are unparalleled in the cannabis industry and provide the industry with a “water shed” moment: The cannabis industry can finally provide financial institutions with the assurances of legal operations and cash tracking practices on the part of cannabis business owners.  Blue Line’s ISV certification with Hypur will serve to elevate industry standards through solving the issues that have plagued the industry to date.

Banking and financial institutions haven’t had the resources or technology needed to work with cash-intensive businesses in the past. Making sure a client is compliant under the state law is a daunting task for the bank. It can take as much as 20 hours to sift through piles of paperwork and legal documents to open a legal marijuana banking account.  Hypur’s SaaS (Software-as-a-Solution) products eliminate an enormous amount of labor-intensive work and enables banking institutions to streamline the process in accordance with all regulatory laws. The guesswork that banking institutions were faced with in the past is mitigated by Hypur’s product solutions. For banking institutions aiming to participate in the lucrative cannabis industry, Hypur’s technology enables the banks to know their customer’s customer (KYCC).  Hypur’s Commerce solution tracks the source of every dollar coming into a cannabis bank account.  Blue Line’s ISV agreement with Hypur and its ability to vault and deposit the cash directly to the Federal Reserve on behalf of each financial institution, creates a chain of cash custody and a level of transparency that financial institutions have not had access to previously.

“Here’s where the money came from and here’s how much cash you should expect coming through your door at any given point. We allow banks to know a given transaction is a legitimate transaction between a consumer and that merchant,” explained Michael Sinnwell, chief operating officer and co-founder of Hypur. “We call it Know Your Customer’s Customer. Banks know their customer but now they have an idea of their customer’s customer to make sure it’s not laundered funds.”

Blue Line Protection Group has garnered a strong industry reputation for servicing the legalized cannabis industry over the last couple of years and generated strong revenues in doing so.  Having said that, the services provided by Blue Line haven’t brought with them scalable solutions that deliver greater gross profit margins for shareholders. Within the interest of BLPG shareholders and the long-term growth of the Blue Line Protection Group business, the more recent actions taken by the company help to ensure greater profitability going forward. Blue Line’s certification with Hypur aims to deliver a more scalable solution to already existing Blue Line customers and new banking relationships.  Hypur is actively working with several banking institutions that will employ Hypur’s product solutions and begin banking legalized cannabis businesses in several states in the coming months. The first banking institution will begin operating with Hypur solutions in August of 2016, with several other markets to follow. Blue Line’s ISV agreement with Hypur affords Blue Line greater ability to scale the aspects of its cash management and vaulting, real time tracking of cash and product, fully electronic payment platform, physical compliance audits, and licensing services like never before.

Blue Line has extensive services that directly and physically touch the cannabis retail operator from the point-of-sale to the transporting, securing and vaulting of cash and cannabis assets of the retail operator. Blue Line has operated the physical solutions of ensuring that their clients maintain compliance and licensure to operate.  But it is within the physical operations that Blue Line has not been able to identify to banking institutions the reliability of compliance or deliver verifiable transactions from the cannabis operator to their customer in a more profitable manner. The banks have needed a “window” into the cash operations of the cannabis business operators and a secure delivery system from the operator to the banking institution.

As part of this developing business relationship and integration between the two entities, Hypur Ventures has invested directly into Blue Line Protection Group.  Per Blue Line Protection Group’s 8-Q filing, Hypur has acquired 10,000,000 shares of the Company’s preferred stock at a purchase price of $0.05 per share for gross proceeds of $500,000.  The shares of Preferred Stock are convertible into shares of the Company’s common stock. The Preferred Stock shall have such other rights, preferences and privileges to be set forth in a certificate of designation to be filed with the Secretary of State. Hypur Ventures’ long-term intentions and confidence are made very clear with this capital commitment and that commitment is extended further with the following:  Hypur Ventures has an option to purchase up to an additional 10,000,000 shares of Preferred Stock at a price of $0.05 per share.

In discussing Hypur Ventures’ investment and Hypur’s ISV agreement with Christopher E. Galvin, the Chairman informed me that Hypur Ventures has every intention to invest upwards of $1mm in additional capital in Blue Line Protection Group in the back half of 2016. With several banking contracts that secure service and platform implementation for a period of three years already in-hand, Galvin believes that the Blue Line Protection Group will be able to grow revenues exponentially in the coming years.

“Blue Line had a good business, but it was difficult to scale and scale profitably because it was largely a physical operation, with high overhead costs for labor, buildings, and vehicles. Competing in that business requires a lot of capital and staying power and transporting that business model to new states requires even more capital to set up shop and do business. It’s just very difficult to scale and a very competitive business to operate and would become that much more competitive with the industry growing. Blue Line has a strong foundation and we have a platform that can deliver scale at little cost because at the heart of the Hypur service is a software solution that the banks have been longing for. We developed that solution for the cannabis operators and the banks and any cash-intensive business to utilize over the last 2 years.  We have a tremendous lead into a very lucrative segment of the cannabis industry and have secured 3–year contracts, with more to come.  The banks are actually helping with the integration and implementation of Hypur.  For any of our banking customers it is just so easy for them to implement and profit from a huge industry.” 

Once a Hypur member financial institution gives a cannabis business a bank account, that business is encouraged to have its consumers sign up for a free Hypur profile to start using it to “pay cash digitally.” Hypur Commerce enables a direct bank-to-bank electronic funds transfer, meaning a customer pays directly from their bank account to the merchant’s bank account at the member financial institution. All consumer transactions made with Hypur are made transparent to the member financial institution to ensure all sales are verified and validated. The sheer mobility of this software has not been available to the cannabis industry in the past.

Almost 30% of cannabis companies have a bank account, but no cannabis company can accept debit or credit cards because companies like Visa and MasterCard will not give the industry merchant accounts until federal law changes. For this reason, Blue Line’s armed cash pick-up and delivery service emerged in Colorado to bring millions in cash to entrepreneur’s homes, private vaults, or banks or local Federal Reserve for the ones with bank accounts. When banks utilize Hypur Commerce, the bank knows exactly how much money is coming and where each bill came from when a Blue Line armored truck pulls up to the bank.

Blue Line will be providing the physical services of securing and transporting assets and implementing the tracking and compliance related services.  For every $1 secured and/or transported by Blue Line from the cannabis business operator to the financial institution or Federal Reserve, Blue Line will assign a fee rate or basis points.  Some of the contracted financial institutions already signed on with Hypur will require Blue Line to secure and transports tens of millions of dollars every single month. In Colorado, already signed contracts require Blue Line to service the security and pick-up of some $30mm monthly. Newly signed contracts will require Blue line to perform the same services for Arizona. In California, Blue Line will pick-up close to $100mm monthly come 2017. In the back half of 2016, Blue Line will be servicing cannabis business operators and financial institutions by securing and transporting some $100mm in cash on a monthly basis. The most astounding aspect of this growth in operations, which is leading to greater profits, is the minimal new client acquisition cost.  This is the greatest benefit of Blue Line’s ISV agreement with Hypur, as it allows for Blue Line to scale its business more profitably.

The addition of banking services will come at a time when Blue Line is already growing revenues from its core security and compliance services business segments.  Additionally, it should be noted that Blue Line’s armed security business is being revamped to rely less on armed security guards and more on 24-hour surveillance camera and sensory systems. Blue Line has already secured relationships to ensure the smooth transition of this business segment that will generate greater gross profit margins for the company while its cannabis business operators enjoy enhanced security systems. Again, Mr. Allen is demonstrating with this action plan the need to scale business operations and it is far more cost efficient and reliable to scale 24-hour surveillance service operations than armed guard service operations.

The potential presented in the Blue Line business model since Daniel Allen has spirited the transformation of the company is real and set in motion. All that is left for Mr. Allen and his growing team to do is execute on business objectives.  At present there are only 4 legal recreational cannabis participating states with another twenty-four states that have legalized the sale of medicinal marijuana.  Blue Line’s opportunity for exponential growth in the coming years is quite strong given the aforementioned variables and likely decriminalization of recreational marijuana in more states to come. Given the dedicated investments from Hypur Ventures and ISV certification with Hypur to drive Blue Line’s growth, it’s quite likely that in the near to mid-term, Blue Line will not only greatly reduce its debt, but also begin to generate free cash flow. As such, let’s briefly discuss some of Blue Line’s recent quarterly results.

Blue Line grew revenues by roughly 28% in Q1 2016 (see SEC filing) by advancing its industry leading customer base and increasing its prices for hourly services provided in its security business segment. In tandem with growing revenues, operating losses were less than in the period a year ago.  Having said that, the existing operating expenses combined with interest expense resulted in greater expenses year-over-year. Part of this additional expense came from Blue Line’s dedication to increasing its operating headquarters and move to a 12,000 sq. foot facility.  Having said that, the revenue growth exhibited, even before the Hypur SaaS business segment is implemented, remains strong.

Moreover, for what Blue Line is offering to the cannabis industry and all cash-intensive industries, there is very little competition. The competition that does exist hasn’t the scale or total service solutions provided by Blue Line’s ISV agreement with Hypur. Much smaller start-ups are aiming to deliver banking solutions to the cannabis industry such as Tokken and Kind Financial.  While both are offering forms of software-as-a-solution to fulfill the needs of banking the cannabis industry, neither provide the physical servicing requirements still needed within the industry to meet all the needs of the financial institutions the way Blue Line Protection Group can and presently is providing.

It is not often that investors are able to participate in an opportunity for outsized capital returns on an investment.  Furthermore, it’s not often that investors are able to participate in groundbreaking, industry moments akin to the launch of the world-wide-web/internet or single-serve coffee, that’s right, single-serve coffee.  In 2003, the first U.S. single-serve coffee machines hit retail shelves, changing the landscape of the coffee brewing world and consumer experience forever.  Green Mountain Coffee Roasters was a small-scale chain of coffee shops in the Northeast and Canada at that time. They were struggling to compete with Tim Norton’s and Starbucks back then and in a highly capital intensive, low profit margin restaurant business.  Green Mountain Coffee Roasters saw an opportunity in a small-scale hardware appliance manufacturer named Keurig and acquired the company’s coffee brewer platform and technologies. The integration of the Keurig brewer platform with the Green Mountain Coffee Roasters business model served to generate billions in revenues for Keurig Green Mountain over the next 12 years.  In 2003, shares of GMCR traded for roughly $1.50.

Blue Line Protection Group - GMCR chart

By 2015, shares had soared to over $150 a share. Great similarities are presented in the opportunity that laid before Green Mountain Coffee Roasters then and Blue Line Protection Group today.  Both have integrated technologies and platform systems that serve to grow the business and leverage existing assets.  Both companies will have delivered groundbreaking platforms to an industry in dire need of evolutionary changes. That is what is presented before investors with regards to Blue Line Protection Group’s ISV agreement with Hypur, as the partnership between these two institutions will change the landscape of the cannabis industry for years to come. We believe the Blue Line Protection Group initiatives in place today will be met with increased profits for years to come and through dedicated execution of the Blue Line business model.  Where the company found scale and profitability difficult to achieve to the benefit of shareholders in the past, Blue Line has course corrected and found the greatest path forward.

Investors are invited to discuss BLPG in the comments section below.


Seth Golden

*The research, analytics and authorship of “Banking The Cannabis Industry: A Ground Breaking Moment Comes Into Focus” is the works of Seth Golden, Market Research Analyst and Contributing Editor with Microcap Research.com.  Seth Golden and Microcap Research.com currently enjoy a direct dialogue with the management team of Blue Line Protection Group and Hypur Ventures.  For investors who desire more information on the research and subject matter within this reporting, please feel free to contact us directly and at your leisure. Seth Golden can be made available upon requested, scheduled time and for the purposes of addressing any queries on the subject matter of Blue Line Protection Group business operations.


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Tech and Microcaps Lead The Way

Last week tech stocks led the way fueled by strong earning reports from Apple and Facebook, while the S&P 500 and DOW took a small breather and declined for the week. The NASDAQ and Russell 2000 extended the weekly winning streak to a 2016 high of 5 weeks with gains of 1.2% and 0.6% respectively. The S&P 500 closed down 0.1% for the week while the DOW finished down 0,7%.

2016 YTD Returns thru 7/29:

DOW: +5.8%
S&P 500: +6.3%
RUSSELL 2000: 7.4%
NASDAQ: +3.1%

Distance Below All-Time Highs thru 7/29:

DOW: Record 1.0%
S&P 500: Record 0.2%
RUSSELL 2000: 5.9%
NASDAQ: 1.3%

The VIX continues to trend downward and finished the week at 11.87 marking the lowest level since August 2015. A VIX level between 11 and 20 has proven to be a supportive level coinciding with broad market appreciation during the market expansion since the recent financial crisis.


Key Earnings Reports

Apple Tops Low Expectations

Apple (AAPL) reported earnings on Tuesday, which sent shares surging over 6% during Wednesday’s session. Apple’s Q3 EPS ($1.42A/$1.38E) and revenue ($42.4B A/$42.1B E) came in slightly above consensus estimates and the midpoint of Q4 guidance landed above analyst consensus estimates for Q4.
Apple’s iPhone unit sales declined 15% year-over-year, iPad unit sales declined 9% and Mac unit sales declined 11%. Revenue from other products declined 16% from a year ago.

Expectations were so low for Apple that despite a significant decline in product sales shares closed up over 5% for the week. Apple’s results sent RF filter shares of Qorvo (QRVO) and Skyworks (SWKS) higher last week.

Apple’s CEO Tim Cook was asked about augmented reality during the Q3 conference call and he had the following to say…..

“I notice there are people that want to call it a new computer platform, and we’ll see. I think there’s a tendency in this industry to call everything new the next computer platform. However, that said, I think AR can be huge. So we’ll see whether it’s the next platform. But regardless, it will be huge.” – Apple CEO Tim Cook

Despite the jump last week shares of Apple remain $30 or 22% below all-time highs reached April 2015.

 

Facebook Tops Estimates and Reaches New All-Time Highs

Facebook (FB) reported earnings on Wednesday, which sent shares to an all-time high of $128.53 on Thursday. Facebook’s market cap is now over $350B and currently ranks as the 7th largest US company ahead of Johnson and Johnson and just below Berkshire Hathaway.

Facebook’s Q2 revenue came in at $6.44B or $0.42B ahead of analyst expectations. EPS came in at $0.97 versus expectations of $0.82 for the quarter.

Facebook’s platform continued to show strength in numbers as the average of daily active users (DAUs) increased 15% year-over-year to 1.13 billion people. Monthly active users (MAUs) rose 15% to 1.71 billion people. Mobile users continued to outpace overall growth

growing by over 20% to 1.57 billion MAUs and 1.03 billion DAUs. Mobile users now account for over 91% of Facebook’s daily and monthly active user base. Strong DAUs and MAUs helped push total revenue up 59% year-over-year including advertising revenue growth of 63% to $6.2B.

Facebook’s CEO Mark Zuckerberg was asked about augmented reality and Pokemon GO during the Q2 conference call and he had the following to say…..

“Well, I, like everyone else, am enjoying Pokémon Go. And the biggest thing that I think we can take away from this as we invest in augmented reality in addition to virtual reality, is that the phone is probably going to be the mainstream consumer platform that a lot of these AR features first become mainstream rather than glasses form factor that people will wear on their face.” – Facebook CEO Mark Zuckerberg


Recent MicrocapResearch.com Picks

Our recent pick Cemtrex (CETX), which we covered Best Microcap Stocks Performance 2015at $2.26 on June 2, hit a high of $6.17 this week for a 173% gain in under 60 days

Our most recent pick, Dataram (DRAM), which we picked at $1.56 on 7/18 hit a high of $2.47, 58% higher than two weeks ago

American Brewing (ABRW) continues to consolidate in the 1.70-$1.90 range, following our initial report when ABRW was just .40/share

 

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New contributor, Seth Golden, with new Cannabis Pick out Monday!

I’m pleased to announce that Seth Golden, a prolific and heavily-followed author on Seeking Alpha, is now contributing here at MicrocapResearch.com.

Seth will be introducing a very promising stock in the legal Cannabis industry on Monday, 8/1/16.  This relatively unknown company has recently signed a game-changing partnership that should successfully ramp sales very, very rapidly.

Seth Golden has served the financial industry as an advisor and research analyst since 2008. Prior to 2008, Seth was a highly effective executive leader with Target Corporation and Bed Bath & Beyond. After leaving the retail sector, Seth began his career in the financial industry with Goldman Sachs and furthered his career through co-ownership and operation of Capital Ladder Advisory Group. With Capital Ladder Advisory Group, Seth has published several hundred pieces of analytical research, which have led to multiple business development projects with Fortune 500 companies as well as start-up enterprises seeking product placement in the market. As a retail and CPG industry expert, Seth’s serves as an advisor and intermediary for several public and private companies.He serves as an advisory and consultant with efforts geared toward establishing strategic relationships in these respective industries.


Best wishes for profitable investing,

Matt Margolis - GA sig

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