INSM On A Tear! agree that the stock was way oversold, touched nearly a dollar. It has come back with a vengeance. The market manipulation is hard to take but I averaged down and am near breakeven again. Tobin Smith says the following:
Our diabetes home-run stock
we are tracking a variety of companies in the diabetes industry, and this company is one of the most promising aggressive names.
The idea behind this pick is simple. These guys own the patented intellectual property for a hormone replacement therapy that helps control diabetes almost like magic.
The market for hormone replacement therapies is huge, with growth hormones representing a billion-dollar market and insulin being a $2 billion-plus sector.
This company owns the "key" to safely deliver insulin-like proteins that can greatly improve life quality (and even mean the difference between life and death). Management believes -- and our Research Alliance concurs -- that their compound, called SomatoKine, has a $1 billion annual market potential.
Why?
Simply put, this compound helps diabetics reduce their use of insulin -- dramatically in some cases. That's an incredible breakthrough in the treatment of this dread disease.
What's more, this drug recently received "orphan drug designation" as a treatment for extreme insulin resistance. This gives the compound preferential treatment. And it's the first step to the FDA approval for ALL diabetics -- and that, my friend, is the promised land.
I've seen similar breakthrough therapies shoot stocks sky-high before. Avastin, a cancer therapy, added $5 billion in market cap to Genentech. And the scientific principle behind this firm's SomatoKine treatment is quite similar -- and could easily bring the same result.
Keep in mind that this play is aggressive and volatile. But the reward I'm seeking is equally exciting.
I'm targeting another ten-bagger by late 2005-early 2006!
Remember, this is a Legacy Stock, which means you buy this one with risk-capital and learn to ignore day-to-day price fluctuations. You're buying this for a result we believe will come in a couple of years, not months.
But we also are convinced it will be well worth the wait!