CDXC Seller Revealed in Filings

One of our top picks, Chromadex shares have been under pressure over the last few months. The shares hit a high of around $7 in November, but worked their way lower, trading as low as $4.50 last week. This despite continued positive results around their lead product Niagen’s effectiveness as an effective anti-aging supplement.

Over the past two months the Company has had many announcements, all quite positive. The list of accomplishments is quite impressive and includes success in Alzheimer’s and CHF; huge potential markets.

  • 2/12/18 pre-announced Q4 revenues ahead of expectations
  • 2/08/18 National Institutes of Health (NIH) Announces NIAGEN® Prevents Neurological Damage and Shows Improved Cognitive and Physical Function in a Mouse Model of Alzheimer’s Disease
  • 1/24/18 ChromaDex Appoints Mark Friedman as General Counsel and Corporate Secretary
  • 1/23/18 Elysium Health, Inc. Challenge of ChromaDex Licensed Patent Denied by Patent Trial and Appeal Board (PTAB)
  • 1/08/18 ChromaDex and Watsons Expand Partnership with TRU NIAGEN™ Retail Launch in Singapore
  • 12/14/17 Published Study Reveals NIAGEN® Nicotinamide Riboside is an Effective NAD Precursor to Protect Cardiac Function in an Animal Model of Heart Failure
  • 12/08/17 Published Study Reveals NIAGEN® Nicotinamide Riboside is an Effective NAD Precursor to Protect Cardiac Function in an Animal Model of Heart Failure

What would cause a stock to sell off in the face of outstanding news like this? Well, as my mentor, Geno Eng, would say, “More sellers than buyers”. Or, in this case one very large seller. Someone who has developed a sour relationship with a Company he tried to control and has decided to move on.

In a filing today, it was revealed that Barry Honig, one of the primary backers of Chromadex several years ago (and, an investor with a mixed reputation at best), has sold about 2 million shares over the last couple months. This has undoubtedly caused the pressure on the shares and created a buying opportunity.

This is, frankly, an opportunity that I didn’t think we’d see again as the price had been going straight up since Mark Zuckerberg’s Iconiq Capital led the last round of financing for CDXC.

Chromadex shares are down from their highs. Meanwhile, revenue forecasts for 2018 have just been increased dramatically. And, we have the near-term catalyst of results from the UC Boulder Study due out in Nature Magazine very soon.

The stock is up 10% today, but don’t let that scare you. Chromadex shares are primed for far larger gains in the not too distant future as Niagen looks poised to be THE next blockbuster dietary supplement.

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