Greetings from Rockport Mass, my home town and where I’m fortunate enough to be spending a couple weeks visiting family and working from an office with a view of the ocean. A view that has been calling me frequently this last week as the water is so inviting and the action in the market is painful; well painful around Tailwinds at least over this last week but not exactly enjoyable elsewhere in microcap since Q3 started.
Since there was literally zero (0) news out of our portfolio companies this last week, and since I wrote literally zero (0) articles, this week’s newsletter is going to be light on content. However, I didn’t want to disappoint anyone by not having a Sunday morning email, so this week we’ll discuss what I’m expecting for the next few weeks that will keep me at my desk instead of in the waves.
Speaking of waves, the east coast is really not great for them. The biggest ones we’ve seen this summer wouldn’t top the after-break at Stinson Beach. They are truly small. But, what the east coast lacks in wave height it makes up for in humidity. The air here can be hot and heavy. To counteract this, I recently concocted my own version of a mai tai and, I must admit, it’s really good. So, I’m expecting to be fighting the heat with these going forward. If anyone is in the area and wants to stop by to join me, just let me know.
I wasn’t completely without purpose this past week and managed to have two very interesting calls that I’ll be writing up soon. The first was with Dr. Steve Elias, who is one of the leading doctors in the area of venous and lymphatic medicine. In other words, he’s an expert on CVI, the medical condition that will be addressed by Hancock Jaffe’s VenoValve. Dr. Elias and I discussed the VenoValve, the size of the end market and the competition that exists in that space. Look for an article on our conversation this coming week.
The other phone conversation that I’ll be writing up was with the management of Atomera. In a recent Seeking Alpha article, there were numerous comments from some well informed readers. Some of these comments raised questions about their MST process and its suitability across different semiconductor product lines. I hope, through an upcoming article, to help provide more clarification regarding the questions posed in the comments.
So, those two articles are definitely happening. But what else could transpire? I fully expect to be providing some sort of update on Anixa’s progress soon. They are getting closer to several major milestones and I expect we’ll be able to provide some clarity around both products’ status soon.
On the other side of the coin, I’ll be dropping coverage of SG Blocks. As near as I can tell, they have missed another deadline with not getting funding for one of their larger projects in the second quarter; a milestone they had pointed to in conversations with the Company. In SGBX you have a Company with major leverage in earnings if they can start getting sales ramping. But, I’ve waited too long for the ramp to start and have lost any confidence in it happening. I’d already sold the stock a while ago. Now, I just don’t see the point in following them any longer.
Resonant also missed a potential milestone in Q2 as they didn’t sign up a license partner for their XBAR 5G filter technology. However, I touched base with the Company and believe they remain on track to get it done, and soon. Deadlines can be artificial dates that spark bad business decisions. I’m glad they are more concerned about signing the right deal, then just hitting a June 30th date. I remain constructive here and will likely add to the position soon.
Catasys’ trading activity this last week was interesting. The stock has been very volatile and did a strange midday spike on Tuesday. At the same time, shares are being sought by shorts and the rate they’re paying has increased. It feels like their position is starting to get squeezed and CATS, if they were to make a positive announcement of some kind, has the potential of launching.
Other things I’m looking forward to?
- How about a Bioasis partnership announcement? The hints are there, let’s see them execute.
- Summit’s rollout at Best Buy will be commencing, which should be the game changer that stock needs.
- I expect to make it to Fenway for a Red Sox game in the next couple weeks.
- Patriot One should be making some contract win announcements soon.
Finally, I’m looking forward to playing more tennis on the Old Wharf Lot. Yes, that’s me there on today’s cover photo. It has to be the coolest tennis court ever and I’m fortunate to be invited to hit there a few times in the month of July. It’s the one time where tennis, a sport often linked with golf through country-club connection, shares a primary golf goal; keep the ball out of the water.Tailwinds' Disclaimers & Disclosures: For a full list of disclaimers and disclosures, please visit http://