Congratulations to Josh Wolfe, who joined President Bush in the Oval Office last week for the official signing of a new $3.7 billion nanotech spending bill. His portfolio in the Forbes/Nanotech Report is up 247% since inception in March 2002. Here's an update on one of his buy recommendations.

"Flamel (FLML NASDAQ) is involved in nano-encapsulation for drug delivery. The stock's 52-week price range has been a low of $2.44 and a high of $43.60. It currently has a market cap of $454 million. Flamel's net loss in the third quarter of $1.87 million ($0.11 per share) was due largely to increased R&D expenses. Following the completion of its blockbuster insulin deal with Bristol-Myers (which triggered a $20 million up-front payment) and secondary offering, Flamel has roughly $100 million in cash and equivalents.

"Merrill Lynch recently initiated coverage with a 'buy' rating and a $36 price target. But despite this, the stock has dropped more than 30% over the past two months. But just think: at a recent price of $27.85,  Flamel's stock price is only marginally higher than when it had roughly $11 million in cash, an unproven technology platform with no major corporate backing and no Wall Street research coverage. Flamel's business has never been stronger, and we suspect the stock will get back on its feet."