MONOGEN has more than doubled since I posted a little over a month ago. Up 10% today. IMHO we have not even begun inning one.
If you do not own wait for a pullback. Do your due diligence. We are due for one as it has been straight up.
stockhouse.com
A lot of great posts here recently:
investorvillage.com
Here is one of the major shareholders who has over 15 million shares or about $20.9 million.
investorvillage.com
The Importance of Owning Early-Stage Growth Stocks
The year was 1915. My father, who is still doing fine at 91, was born on June 10th. In mid-August his father was injured in an unusual way after accepting a bet at their summer cottage at Rose Cliff, So. Weymouth, Massachusetts. Playing cards one evening with friends, he was challenged to see who would be the first to enter the ocean in front of the cottage. Knowing that using the stairs to descend the steep cliff would not win, he plunged off the cliff but upon entry was impaled in his stomach by some driftwood. Today I'm sure he would have lived, but in that era there were no antibiotics to combat the infection that resulted. He lingered in bed for 6 months, dying in January, 1916 at age 33.
He was a very successful entrepreneur, having started a wholesale egg and cheese business in Boston. During that 6 months of life after the injury he successfully sold his business and with the proceeds told his young wife that he had bought two stocks with the proceeds--- Eastman Kodak, his technology stock, and Beatrice Foods, the company he knew well from the food business. His instruction, which she repeated often during her 85 year life in which she never married again, was to NEVER SELL these stocks unless she needed money to live on, and then only to sell enough stock to provide 6 months living expenses for her and her three children at any one time.
Countless times she was told by bankers and brokers alike that because she never worked and needed income, to sell and invest in bonds or put the money in their bank. She was taking "too great a risk" was the constant refrain. She would smile and tell them NO, remembering her dying husband's admonition.
She put all three kids thru college,(one became a doctor), and she lived in style thru her long life. When she died in 1970, the EK and Beatrice were still held and were valued at over $US1 million in her estate.
What can we all learn from this TRUE story. Identify greatness early, as in the case of MONOGEN, and hold for the LONG term. I doubt very much whether I will own another stock unless we get bought out prematurely. Luckily, there are four of us that collectively own over 50% of the company so that event will not happen unless it is an offer we can't refuse.
Rocket
investorvillage.com
The Second Ace
I was watching Texas-Hold-Em last night and it was mentioned that the odds of being dealt a pair of aces down was 212:1, meaning you should bet them strongly. We shareholders have been dealt a second ace among the MONOGEN team---- Siegfried Weiler. He is the President and owner of Diamond Machine Werks, the company in Chicago that manufactures the Processor. Note the spelling of "Werks". German! Seigfried is a second-generation German, I'm told, and obviously proud of it. What do you think of when you characterize a German---- a perfectionist. That gut feeling, coupled with the knowledge that he and his wife have invested over $US27 million in MONOGEN and have been stalwarts through thick and thin, is your second indication that someone you can rely upon has done your DD for you. Siegfried is your second ace!
Rocket
The first ace is Ted Geiselman, the Executive VP and COO. (See message 23).
investorvillage.com
First-Rate People
A broker friend from New York had a conversation with Evan Jones, the past Chairman of Digene, in early December. When asked about MONOGEN, Evan's first words were "first-rate people". That's what it's all about! Contrary to what many of you think, I really don't have a clue how the MonoPrep Processor does what it does. But having met personally all the top management I second the assessment of Mr. Jones, and that's all there is to it. I invest on an instinctive ability to recognize greatness before it becomes obvious to other investors. I also have the guts to act decisively on that feeling.
Rocket
Re: Looking down the road...
I just can't help commenting on the idea that earnings are important as an entry point. If you wait until a company has earnings much of the appreciation has already taken place. For example, in 2000 when I bought a size position in ID Biomedical the value of the company as a whole was about $US100 million. There were about 30 employees and they had patents on a StrepA vaccine and little more. In September, 2005 Glaxo paid $US1.4 BILLION for the company after IDB had consummated 2 acquisitions, one a nasal flu technology and the other a intramuscular flu vaccine. At no time during that 5 years did IDB ever come close to "earnings", and yet I made 10 TIMES my money! Think about it.
Rocket
One other thing, the IP (intellectual property) of MONOGEN is so formidable that the company could be acquired at any time for that property alone. I am aware of 2 such attempts by legitimate companies since MONOGEN obtained its FDA approval in March 2006.
Re: The Make-Up of the Owners .......
I'm being bad for posting. Must kool it for awhile!
I do own 15 million; 9,931,000 in the private placement, the remainder in open market purchases.
Rocket
investorvillage.com
Must Crawl Back In My Hole
Betty is not happy with me for the intensity that I have exhibited toward MONOGEN and interesting others in the company. I must desist and become a lurker myself on this board. It is a wonderful long-term investment and I've done everything I can to make it successful from my standpoint. Now I must devote more time to my wife!
My apologies to any of you that might want to call. Please don't. See you at the AGM this summer.
Rocket
Ownership Breakdown---typo Rocket owns 15 million shares not 5
investorvillage.com
The Make-Up of the Owners .......
of this company, as best I know it.
I'm going to divide the shareholders into 3 components and discuss the restrictions placed on each group.
1) The Private Placement33.5 million shares)
This was closed on November 14, 2006 and raised CDN$18.5 million at $CDN.55 (US$.49). (I participated in this placement). The shares are restricted for 4 months, and then could be sold only in Canada under a 904 registration. Andre told me that my restrictions printed on the certificate will be removed by the company without having to sell after 2 years. Piece of cake!
2) The MONOGEN Shareholders: (57 million shares +/- )
These shares were the original MONOGEN shareholders other than those owned by Oxbow Equities, which were not counted for purposes of the conversion. Of the 57 million NEW shares issued, 47.5 million are owned by the Weiler Trusts, and I approximate 7 million are owned by Hoffer Plastics. That leaves only 2.5 million owned by others. All these shares are locked up for 9 months from the closing date of the merger, which was October 31st, 2006. See pg. 84.
3)The Oxbow Equities Shareholders: (76 million shares +/-)
These shares are all free for trading and are the "float" from which we must buy. Let me account for many of these shares which are held by solid, long-term investors and therefore should not see the light of day for many years or until the company is acquired.
a)A broker in Calgary has 10 million.
b)A lawyer and friends in Montana has 7-8 million
c)Andre owns over 11 million
d)A group in Washington state owns 1 million and counting
e)A broker in Montreal can account for 20-30 million
f)I own over 5 million and friends and family own millions more
That approximates about 65 million, which only leaves 10-12 million unaccounted for. Intersting, isn't it. What's going to happen if small-cap specialists like the Royce Funds start buying?
Rocket
PS Received a very friendly email from HI. The Information Circular I alluded to last night has been taken.
Re: The Make-Up of the Owners .......
A postscript on the make-up of the private placement group. Most of these shares were sold to Canadian institutions who are considered small-cap specialists. Since they mark-to-the-market for reporting purposes, they have no incentive to sell after the 4 month restriction. I would doubt if any of these shares are sold this year.
Rocket
investorvillage.com
You Might Wonder Why......
I was able to ask for and receive permission to organize the investor meeting that was held last Thursday in Chicago.What occurred was considered unheard of. Let me share with you the reason it did occur.
Together with Betty, I own over 15,000,000 shares or about 9% of MONOGEN, making me the 2nd largest shareholder behing the 47,500,000 shares owned by the Weiler Trusts. Andre told me on Thursday that when the company files its prospectus with the SEC prior to the proposed offering in the states I will have to file a 13D as a 5% or more owner. Currently, because the Canadian threshold is 10% I do not have to do so, owning under that amount.
I just wanted all of you to know that, but rest assured it means nothing will change in our lives. No new homes, continuing to work as a woodsman when in Maine, etc. It's just a means of keeping score, and showing naysayers that rifle shooting (being in one stock) can be far more rewarding than shotgunning (owning a mutual fund,etc). Get the drift?
Rocket
investorvillage.com
A One-Trick Pony
For those of you who don't know me, I thought I'd post my original message that I sent to friends and family on November 13, 2006. Incidently, I am a retired stockbroker from Maine.
2006 has been a year of transition between my single-asset portfolio--ID Biomedical-- and my new single asset-- MONOGEN, Inc. As most of you know, I held only IDB from 2000 to its acquisition by Glaxo in September of last year. I then positioned and recommended a number of stocks [Medsurge (now CRH Medical), Sigma Designs, Corriente Resources, Labopharm, Oxbow Equities (now MONOGEN), Tyhee Development, and Delta Petroleum]. All are great early-stage companies that will be profitable investments, if held. However, I have an obsessive personality which forces me to choose what I consider to be the cheapest company relative to what I perceive to be its future growth. Sometimes it entails sticking my neck into places that frighten others, as I'm sure most of you will be if you study superficially my current pick.
MONOGEN (MOGIF, currently US$.69), based in a suburb of Chicago, is a "pure-play" debt-free invito-diagnostic medical device company that is developing an integrated suite of fully automated modules called the Savant Laboratory System for anatomic and molecular pathology laboratories. It received FDA approval in March of this year for its flagship machine and has just completed a private placement, raising CDN$18.5 million, in preparation for the manufacturing ramp of its MonoPrep Processor that will perform liquid-based PAP tests. (See the machine in action and study the backgrounds of its management and board of directors at MONOGEN.com.)'>http://www.MONOGEN.com.)
Since I am over 65 and intend to hold MONOGEN for at least 5 years, I'm afraid this will be my last hurrah in the high risk-high reward arena. Given my myopia, I will be discontinuing email coverage of all the stocks other than MONOGEN that I have mentioned over the last year. If any of you do buy MONOGEN and would like periodic updates, email me your continuing interest. Otherwise, I wish you all the best of luck with your investments.
Rocket
P.S. I want to reemphasize that all the other stocks that I have recommended are fine companies and should afford anyone who owns them an above-average rate of return over the next 5 years. However, in my opinion, MONOGEN will perform the best over that timeframe because after 9 years plus of incredible effort with very little money the company is at the inflection point in its life cycle. It is by far the best opportunity I have ever found selling under $100 million U.S. in market capitalization.
Chicago Meeting
investorvillage.com
Back Up The Truck
The meeting I attended at the MONOGEN headquarters in Chicago was electrifying! The MONOGEN Processor works flawlessly and will become the defacto standard for automating the anatomic and molecular pathology laboratories of the future.
I have decided to say little else at this time and let the market price of the stock speak for me. I could wow you with superlatives but will not. This is the best technology I have ever found, in a company that is virtually unknown and, therefore, inefficiently priced. With the commercialization ramp building all year, it will be an interesting stock to watch, to say the least.
Look for a 1:10 reverse split sometime late in the second quarter, followed by a secondary offering in the U.S. and a NASDAQ listing. Do not attempt to trade this stock; just buy it and sit back and watch. You will be handsomely rewarded.
Rocket |
