What stock is developing Panakeia 604? Keep reading as we figure out what Pat Cox is talking about. We’ve seen this one pop up before. Panakeia the goddess of healing. When used in reference to a medical treatment, this implies that the medical treatment is some sort of cure-all or panacea. From the days of the snake oil sales man and before, cure-alls have always attracted people. The idea of taking just one drug or treatment to cure just about everything from Alzheimer’s to Cancer is very attractive to investors. Of course scientists have been searching for this panacea for eons, there may be one here already. It’s code name is Panakeia 604. At least that’s what Patrick Cox believes he has found in a very small “undiscovered company” and “The Last Stock You’ll Ever Need” and the latest “Panakeia 604 Hits the Market”.
He goes on to tell us that besides its “Panakeia 604” breakthrough, this company has a bevy of positives going for it. The company insiders hold about 35% of the company, and the CEO holds about 9%. The company does have some big name institutional holders such as Goldman Capital Management and Vanguard Group. Back to this “Panakeia 604” breakthrough treatment that could be “the biggest medical breakthrough story in medical breakthrough stories.” Why is it such a breakthrough?
Cox goes on to tell us that this treatment does not fall under the FDA, so it doesn’t have to go through the rigorous scrutiny that other drug cures do in order to get approval to market. Cox says the treatment focuses on the core problem behind many ailments, which is inflammation. Inflammation being the first indicator your body gives when something is wrong. So what company has this “supertreatment”?
Its none other than Star Scientific, Inc. (NASDAQ: CIGX). At the time of this writing CIGX is trading just under $3 and is up almost 30% from a recent low of $2 it hit back on Oct 3rd. CIGX traded as high as $5.21 back at the end of May. Average volume for the stock is roughly $1.5 mil per day with a market cap of $386 million. Below is a recent stock chart and the top institutional and mutual fund holders of CIGX.
Star Scientific develops low-tobacco, smokeless tobacco products and technology for curing tobacco in such a way that to prevent the formation of carcinogenic toxins present in tobacco and tobacco smoke. Additionally, the company is also engaged in the development of pharmaceutical products, particularly products that have a botanical, tobacco-based component, that are designed to treat tobacco dependence and a range of neurological conditions, including Alzheimer’s disease, Parkinson’s disease, schizophrenia and depression, and is also in the development of non-nicotine nutraceutical products.
Looking at the chart, the company won what would be a significant patent lawsuit for the company against Reynolds back in March of 2011 involving their tobacco curing process, which sent the stock up. And it rode some nice waves when the FDA ruled that their ARIVA and STONEWALL products did not fall under the FDA to get to market.
This is what Cox is excited about, the company has been isolating and extracting an alkaloid called anatabine, which is present in the Solanaceae family of plants, which includes tobacco, tomatoes and the red peppers. Anatabine is found in cigarette tobacco and smoke, and is absorbed in the human body after tobacco use. It is believed by some that anatabine can help with smoking cessation. Studies are also being performed on the substance’s affects on inflammatory diseases and disorders. Star Scientific has developed a product called Anatabloc (RCP006), which targets inflammation. (Remember above ” the treatment focuses on the core problem behind many ailments…inflammation.”)
The Roskamp Institute, which focuses on finding new treatments for the diseases of aging associated with chronic inflammation, is currently studying the anti-inflammatory affects of RCP006 whose active ingredient is anatabine. Inflammation is seen as a central factor to Alzheimer’s Disease and the aging process. You can see how investors would get excited about the prospects that Star Scientific presents.
Yes, this is all very exciting, a company trading under $5 with a hopeful “supertreatment” for Alzheimer’s and aging? Could make ya rich! However, some things to think about are; if this company was that far along with the research, and as promising as any press may seem, wouldn’t more money be thrown at it? Would it actually be trading under $5? Wouldn’t this have attracted more attention from bigger players? Star Scientifics financials aren’t that great. They are currently losing significantly more money then they are making. There is currently a short position of 16 million shares on CIGX which represents about 11% of the outstanding stock. We won’t go into a full company profile on Star Scientific (NASDAQ: CIGX), our purpose was to identify the ticker symbol that Patrick Cox was talking about.
Just keep in mind, your financial destiny is in your hands, so conducting thorough due diligence is key to making any investment decisions, whether short or long term goals. Never base a long term investment decision on hype.