Is IGGI finally starting to move ? It closed at $3.00 up .625 for the day. That's a 26.32% increase in one day! Here's the low down on IGGI from Stockline awhile back:
June 4, 1996
stockline.com
e-mail: Invest@stockline.com
IGG International, Inc.
IGGI $4.63
Exceptional Opportunity
I research and perform due diligence on almost a thousand companies per year
and from these I select 10 to 20 companies that I feel very comfortable
about and recommend them to my subscribers. By being selective and
eliminating 98% of the companies, I improve your success rate for profitable
speculation. Then you select a few of my recommendations that best suit your
objectives and, provided you purchase the shares at a reasonable price, you
profit handsomely.
I only mention this selection process to point out that I am usually
disappointed with the fundamental analysis of most companies. It is rare
that I find a company that excites me enough to contact management for
additional information. So you can imagine my excitement when I run across
an exceptional opportunity like today's recommendation, IGG International,
Inc. As well as our recommendations have performed during 1996, I fully
believe IGG has the potential to dwarf all previous percentage gains that I
have so proudly reported. It won't happen in the next two or three weeks and
possibly not in the next quarter or two but IGG could become a very high
priced stock if management is able to advance and complete the projects it
has been developing for the past 10 years.
IGG International is a biotechnology company focused on developing complex
carbohydrate compounds, derived from naturally occurring substances, for
pharmaceutical and agricultural applications. IGG has two operating
subsidiaries: International Gene Group, Inc. and Agricultural Glycosystems,
Inc.
International Gene Group is developing carbohydrate compounds as
therapeutics for the treatment of cancer, cancer metastasis and HIV.
Agricultural Glycosystems is developing and commercializing carbohydrate
compounds that have demonstrated an ability to improve plant resistance to
fungal infection.
Technology Overview
Carbohydrate compounds are being recognized as a rapidly growing area of
therapeutic product development. IGG is developing several classes of these
compounds based on the discovery of their biological activity by the
company's scientific founder and CEO, David Platt, Ph.D.
Dr. Platt, an accomplished carbohydrate chemist, isolated a specific
fragment of pectin which acts as an anti-adhesive to prevent cancer cells
from binding together and metastasizing. Pre-clinical studies on IGG's
compound derived from pectin have been published in the Journal of the
National Cancer Institute. The journal article outlined the compound's
ability to inhibit spontaneous metastasis in a mouse melanoma cancer model.
The company has identified the activities, determined the structure and
successfully replicated the isolation process of the active fragment of
pectin. In addition, IGG has developed a method to produce large quantities
of the compound at a low cost. Dr. Platt has filed a patent for the use of
pectin or pectin derivatives as a cancer treatment. I understand human
trials could start as early as the first quarter of 1997, just a bit more
than six months away.
In addition to his work on pectin, Dr. Platt is developing a second class of
naturally occurring complex carbohydrates as immune modulators. In
pre-clinical studies, this group of compounds has demonstrated in mice, the
capability to stimulate the immune system to fight against cancer and a
virus similar to HIV (MuLV). Research into this class of compounds is
ongoing.
Agricultural Glycosystems is developing and commercializing non-toxic
carbohydrate compounds for improved plant health. The compounds are designed
to stimulate a plant's internal immune mechanisms to fight against disease
and infection. A lead product has been identified, AGI 02-105F. Field
studies on a variety of plants has shown the compound to be highly effective
in controlling disease without impacting the plant. The potential market
world-wide is in the billions of dollars and if only a small percentage of
the market is captured, the earnings for IGG would be tens of millions of
dollars.
An independent research report by Frost and Sullivan predicts sales of
carbohydrate based therapeutics to reach $5.25 billion by the year 2000. IGG
is emerging as the innovative leader in this new class of therapeutic
compounds.
Last January IGG announced that its subsidiary, Agricultural Glycosystems
signed an exclusive, worldwide licensing agreement with the Government of
Israel, the co-developers, to commercialize the product.
This fungicide is now awaiting approval by the
Environmental Protection Association and the company expects to obtain
approval in the future (6 to 9 months is my guess but it could be sooner)
since the product is completely non-toxic.
Recommendation
The company isn't making any profits right now but the burn rate is fairly
low and the share price should rise in anticipation of huge earnings down
line. IGG is likely to be a high priced stock six to 18 months from now but
the biggest profits will come from the cheapest shares.
If the management of IGG International achieves its goals, your
grandchildren's will be telling their children about how you amassed a
fortune for the family and about the company that made the entire family
wealthy. It's not a matter of buying shares in this company, it's a matter
of buying enough at the right price. The shares were as high as US$6.00 in
the last 12 months and I'm confident the stock will exceed that price in the
near term. The shares trade lightly on NASD OTC Bulletin Board but patient
buyers should probably be able to buy between $5.00 and $6.00. Don't push
the share price through $6.00 for a few weeks. Give current shareholders
ample time to get a quote and decide to part with their shares. If we don't
get filled at our price by June 20th, we might go a little higher at that
time.
The shares are traded by market makers so you usually have to buy at their
offering price which is currently $4.63 but that will move higher as our
orders are entered tomorrow morning. It appears that Public Securities is
the most active market maker and your broker's trading desk can reach them
at 1-800-964-4551.
____________________________________
IGG International, Inc.
One Kendall Square, Building 300
Cambridge MA 02139
* For additional information
* Jim Czirr at (208) 263-6695
Symbol: IGGI
* Exchange: NASDAQ OTC Bulletin Board
* Current price: US$4.63
* Range: $0.625 - $6.125
* Started trading: August 14, 1995
* Shares outstanding: 8.4 million
* Of which insiders hold 5.8 million in restricted shares
* Float: 2.6 million
* CUSIP: A449546100
**********************
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