Watching Trends in Biotech and Solar

09/29/2013 8:00 am EST

Focus: STOCKS

Harry Boxer

Author, The Technical Trader

Harry Boxer, author of The Technical Trader, provides some of his favorite picks in the biotech and solar sector and fills you in on why he's so excited about them.

SPEAKER 1:  I’m talking trends with Harry Boxer.  Hi, Harry, and thanks for being here.

HARRY:  My pleasure.

SPEAKER 1:  So what do you see these days?  We talked a little bit about 3-D printing.  I mean that’s amazing today.

HARRY:  It is.  More than 10 years, I visited 3-D systems and saw a demo, and it was like whoa.  They weren’t even public then.  Of late, SSYS (Stratasys), Proto Labs (PRLB), EX1; those are the four big ones in the industry.  There is a little buy-out tech company called Orvganovo (ONVO) that is now bio-printing organs for testing.

SPEAKER 1:  That’s amazing.

HARRY:  That could be something, I think that down the road could be quite interesting.  That stock when I first bought it, it recommended to my scrubbers it went from 4.25 to 8.5.  It doubled in two weeks.

SPEAKER 1:  Oh my gosh.

HARRY:  Two weeks.

SPEAKER 1:  Yeah, two weeks.

HARRY:  Two weeks.

SPEAKER 1:  What was the catalyst behind that?  Just more press releases?

HARRY:  Yes.

SPEAKER 1:  Yeah.

HARRY:  More public awareness.

SPEAKER 1:  What do they do when these organs are not transplantable?

HARRY:  No, they’re not transplantable.  They say it may be 10 or 15 years, but at least, the key is that bio-tech companies and pharmaceutical companies want these organs intoed of having to do it on human testing they can now test it on human organs.

SPEAKER 1:  Sure.

HARRY:  That are bio-printed so it’s fabulous.

SPEAKER 1:  And cost wise, I mean how expensive are these organs?

HARRY:  Well, it’s not the organs, it’s the machine that makes them.  It’s only a couple hundred thousand dollars I think,

SPEAKER 1:  Yeah, that’s reasonable.

HARRY:  A bio-tech company is going to want to buy it.

SPEAKER 1:  Cheaper than a transplant.

HARRY:  There you go.

SPEAKER 1:  Right?

HARRY:  Ah, huh.

SPEAKER 1:  Okay, what else?  Do you have anything else in the bio-tech area that you like or that you’re seeing?

HARRY:  There are an awful lot of stocks that I’ve recommended this year that have done great, but a lot of them had big runs.  The stock I like now is Celldex (CLDX); another one is ACAD.

SPEAKER 1:  What’s that one?

HARRY:  Arcadia pharmaceuticals.

SPEAKER 1:  Okay.

HARRY:  They’re emerging and they’re in their 20s.  I think if they can be $40, $50, $60 a stock they’d be taken over.  Some of the ones we had prior to this year were PCYC (Pharmacyclics) and Agerianao (SP?) EGR both that went from the 20s to the 90s.

SPEAKER 1:  Oh my gosh, that’s a huge gain.

HARRY:  Yeah, ONXX in the 30s to 125.

SPEAKER 1:  Right, I was just looking at that one.

HARRY:  130, yeah.

SPEAKER 1:  Then also you’re looking at some solar companies too right?

HARRY:  Yeah, I really think, my favorite solar is I believe in a group is First Solar which is one time a $3300 stock; it’s trading in the 30s.

SPEAKER 1:  Yes.

HARRY:  I think it could be double or triple in the next you know year or two.  The lower priced ones that I like are Canadian Solar (CSIQ), SUNE that’s SunEdison, and I also SolarPower (SPWY), SunPower excuse me.

SPEAKER 1:  SunPower.

HARRY:  Those four are the stocks that I’d be interested in.  I think they may double and triple in the next year.

SPEAKER 1:  What’s propelling this?

HARRY:  The fact that their cost basis, the price cost, you know like anything else.  Initially everything costs a lot more money like a cell phone.

SPEAKER 1:  Sure.

HARRY:  Costs a couple thousand dollars, now it’s a hundred bucks.  The same thing with solar.  The cost of the modules are dropping, becoming more economically cost efficient and as a result they are now able to put them in homes and businesses and make it more acceptable for companies and people to consider the solar power which is way cheaper now; one-third the cost of electricity and stuff like that.

SPEAKER 1:  Right, yeah, well super.

HARRY:  That’s an emerging group.

SPEAKER 1:  Thank you, Harry.

HARRY:  My pleasure.

SPEAKER 1:  Thanks for being with us at the MoneyShow.com video network.

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