A Visit to DNAP
First of all, let me start by stating my opinion, so as to give any readers knowledge of my position. I recently stated here that I would not consider selling DNAP until such time as the stock hit $2.00/share. I now officially retract that statement. I will not sell this stock for less that $10/share and only a small percentage so as to lock in some profits. I met with Dr. Frudakis, and had an hour-long conversation vis-à-vis DNAP's future plans and direction. Dr. Frudakis is an extremely pleasant and forthright individual, and the longer one speaks with him, the more comfortable one becomes with any investment one has in DNAP.
The topics we covered follow:
1. Pink Sheets
DNAP is currently having an audit conducted in order to prepare their SEC filing. Dr. Frudakis stated that he expects to be off the pinks and listed within the next 6 weeks. This has been the plan from the beginning, as was the driving factor for the recent reverse merger with CLYC.
2. Possible buy out by a larger firm
Dr. Frudakis made it quite clear that short of being offered the keys to the kingdom of heaven, he has absolutely NO plans to allow a larger fish to acquire DNAP's technology via a buy out. Instead, DNAP is seeking strategic alliances with major biotech and drug manufacturing firms. While I was there, DNAP finalized a deal with a MAJOR genetics firm listed on the NASDAQ. This deal will provide DNAP with a $700,000 Genetic Snip Stream machine…. GRATIS J (name withheld due to my agreement with Dr. Frudakis )
3. Future Plans
As stated above, DNAP is in the process of striking major strategic alliances. One such alliance will be made public within the next 2-3 weeks. This is the first of many such alliances, and all of their negotiations are with VERY large cap firms either in the biotech field, or the drug-manufacturing field.
I brought a digital camera with me intending to take some pictures of their offices, but I chose not to do so as they are in the processes of moving into a MUCH larger and more modern facility. This facility is more able to handle all the new hardware they are getting. I did view their data center, and I saw the new SUN Mircosystems machine.
4. Patents
DNAP Currently holds one patent for their TrueSeekâ technology. They have a second and FAR more valuable patent applied for, however they are going slow here, as once they make full application for this patent, they must also make full disclosure of the methodology, thereby giving other a starting point from which to seek their own methods. Dr. Frudakis intends to hold this back until they have it finalized, so that even if some firm should use DNAP research to arrive at their own methodology, they will be WAAAY behind DNAP in getting it to market.
5. Current Value
Dr. Frudakis stated that the accountants currently working on the SEC filing have placed the current value of DNAP at around $200 million. This number is expected to rapidly grow to $1 billion as they begin to release results based on their pending patent. The process involves testing a person and a drug efficacy and contra-indications. In layman's terms, this means how well will this drug work for this patient, and what negative side effect can this patient expect, due to that person's genetic make-up.
Dr. Frudakis stated to me that his former employer (who has been granted some patents due to Dr. Frudakis's work) is now a $1 billion firm. Dr. Frudakis stated that he expects DNAP to be **10** the size within 3 years.
In conclusion, let me say that I have never felt this level of confidence with a firm, it's personnel, and it's direction. Their business plan is nearly flawless, and their management on the ball. Has anyone ever wished they could buy IBM when they were but a fledgling firm?
Mickey |
