Small Cap Stock Market Investing Tips

As 2011 rolls to an end, here's a few companies developing or commercializing novel or unique technologies whose stocks could make a splash in 2012...

LPTN: Lpath Inc. (OTCBB: LPTN), the industry leader in lipidomics-based antibody therapeutics, has announced the initial dosings of two proof-of-concept trials over the past few months, with results from both trials due to be announced in 2012.

The two trials, PEDigree and Nexus, will measure Lpath's iSONEP as a treatment for retinal pigment epithelium detachment ("RPE detachment" or "PED") and Wet AMD, respectively. Phase I trials have already proven that treatment with iSONEP was well tolerated in all subjects, while demonstrations of efficacy were also noted....

The collaboration between Human Genome Sciences (HGSI) and GlaxoSmithKline (GSK) continues.

The two partners were the first to bring a new lupus-treating drug to market in over fifty years with Benlysta earlier this year, and the pipeline development continues as the two companies announced this week the initiation of another Phase III trial.

According to a press release issued on Thursday, "dosing has been initiated in BLISS-SC, a new Phase 3 trial to evaluate the efficacy, safety and tolerability of BENLYSTA® (belimumab) administered subcutaneously (SC) once-weekly to autoantibody-positive adults with active systemic lupus erythematosus (SLE)."

With only a fraction of the total short interest having likely covered during the attack on shares of Ampio Pharmaceuticals earlier this week, another round of attacking from the short side was to be expected, and Thursday's trading day saw it unfold.

Shares dropped to as low as $3.60 as the negative pressure applied by the short sellers took control of trading, and another round of negative articles were released over popular stock investing websites.

Again, only a fraction of shares short looked to have covered, judging by the trading volume totals, so it's likely that we have not yet seen the end of the negative attacks by the admitted short sellers...

Cytosorbents (OTCBB: CTSO) has been taking care of business lately.

A recently-announced funding agreement put the company on solid footing to carry out its commercialization plans for CytoSorb in Europe, and just this week it was announced that Cytosorbents has been awarded a Phase I SBIR (Small Business Innovation Research) grant by the US Army Medical Research and Materiel Command titled, "Investigation of CytoSorb Cytokine and Myoglobin Removal in the Treatment of Trauma."

The grant is worth $100,000, although there is an option available to bring in another $50,000. The awarding of this grant ...

Advanced Cell Technology (ACTC) wasn't the only company to resolve some legal questions this week.

Mannkind Corp (MNKD) announced on Tuesday the resolution of the arbitration process with one of its former employees who had previously filed a lawsuit against the company alleging wrongful termination and a cover-up of key data behind one of the clinical trials for Afrezza, a developmental inhaled insulin product for diabetics that was denied approval by the FDA earlier this year, pending a new trial testing the company's next-generation inhaler.

It's been nearly a year since Advanced Cell Technology (OTCBB: ACTC) made the historic announcement of the FDA's decision to allow ACT to commence a study measuring the effectiveness of its embryonic stem cell-based retinal pigment epithelium (RPE) technology, only the second company - behind Geron (GERN) - to have been granted the authority from the FDA to begin a trial based on embryonic stem cell technology.

Shares flew on the news, as ACT was established as a potential major player in the future of medicine...

Cytosorbents Corporation (OTCBB: CTSO) announced last week the entrance into an agreement with Lincoln Park Capital Fund that would, from time to time, allow the company sell shares of CTSO for up to $8.5 million.

The move, according to a form 8-k filed with the SEC, will allow Cytosorbents to fund the commercialization of CytoSorb in Europe, while also funding the additional studies that may be needed to warrant a CytoSorb approval in other nations around the world, including the United States...

A few months ago it was brought to the attention of investors that shares of Ampio Pharmaceuticals (AMPE) were carrying a very significant short interest, reaching 20% of the entire float. When shares of developing pharmaceutical or biotech companies rise in price as quickly as AMPE has over the course of 2011, it's not unusual to see a parrallel rise in short interest, as many of these yet-to-be-established companies see their shares quickly fall back to earth after such price runs.

In the case of AMPE, however, the pullback that the shorts likely expected never materialized as encouraging milestone events on the pipeline front continued to demonstrate that Ampio might be onto something with its strategy of repositioning already-approved products to treat new indications...

Shares of Siga Technologies (SIGA) closed on a high last week after comments made by Siga board member Fran Townsend to CNN circulated the media wires and reassured investors that the large government contract awarded to Siga by the Biomedical Advanced Research and Development Authority of the United States Department of Health and Human Services (BARDA) earlier in the year was, in fact, on track.

Congressional bickering, some potential conflicts-of-interest and a court ruling that turned out in favor of a Siga rival had many wondering whether the once-promising future of the company after landing the nearly half-billion dollar government contract would ever come to fruition...

Keep an eye on NovaBay Pharmaceuticals (AMEX: NBY) to close out 2011, as trading volume has quietly been picking up steam, as noted herelast week. The daily trading average for NBY is under 50,000, but well more than that number of shares were traded during each trading session last week, culminating with over 300,000 shares trading hands on Friday.

The new week opened up right where last week left off, with just under 500,000 shares trading hands on Monday - more than ten times the daily trading norm.

NovaBay may be again starting to attract attention for the potential of its Aganocide compounds (NVC-422), for which multiple trials are ongoing and/or planned in the treatment of various infectious indications. The Aganocide technology could be a game-changer ...

Shares of Capstone Turbine (CPST) reacted positively last week to news that the company had reached a deal with General Electric (GE) to extend its OEM agreement for GE's Heat Recovery Solutions segment Clean Cycle generators through January, 2016. With the deal, GE also agreed to provide continued parts support to Capstone through 2020, freeing up Capstone to sign longer-term m service agreements with its distributors and customers.

Before shares retreated back to the dollar level later in the week, CPST touched $1.13 on the news, and increased volume threatened to move the price higher before shares closed Friday at $1.06.

The Capstone/GE collaboration is important for a few reasons, and brings to light some potential scenarios that could alter the landscape of Capstone as an investment...

SIGA: Shares of Siga Technologies (SIGA) were on the rebound Friday after having sunk to as low as below two dollars when rival PharmAthene (PIP) won a court ruling a couple of months ago that forces Siga to split profits of ST-246, a powerful antiviral for which Siga received a large government award earlier this year.

SIGA closed Friday at $2.43, up fifty nine cents and good for a thirty two percent gain, after Siga board member Fran Townsend granted an interview to CNN in which he quelled fears of impropriety surrounding the contract award. Some members of Congress have raised questions about the legitimacy of the contract, adding to the recent downward pressure to the SIGA stock, while other political conflicts of interest may also have contributed to the sagging share price....

CVM: Cel-Sci Corp might be starting to make some noise again...

ONTY: Another cancer immunotherapy stock that is starting to make some noise again is ...

PBTH: Israel's Prolost Biotech (PBHT) has been garnering a little bit more attention these days...

AMPE: Ampio Pharmaceuticals (AMPE) has already enjoyed a solid string of encouraging pipeline...

NBY: Volume has been increasing for NovaBay (NBY), a company that may have the answer to the ongoing ...

GLTC: GelTech Solutions (OTCBB: GLTC) is another one with commercialization plans that can ...

CCLR: Chanticleer Holdings (OTCBB: CCLR) announced the 'grand opening' of its new...

GelTech Solutions (OTCBB: GLTC) produced some solid news this week, and in response the company's share price flew higher on Tuesday and closed with a 20% gain.

GelTech is a company that develops and commercializes environmentally friendly products geared to help "industry, agriculture, and the general public accomplish environmental and safety goals, such as water conservation and the protection of lives, homes, and property from fires."

At a time when governments around the globe are looking to cut costs and conserve resources, while also trying to utilize 'greener' and more eco-friendly products, GelTech's two flagship products could stand to make some serious market inroads.

Both FireIce and Soil20 fit the 'green' bill, when compared to products already existing on their markets ....

Part of what makes any particular developmental or clinical stage company into a success story is its ability to develop and eventually commercialize a pipeline that brings a unique angle to the table. That angle could be, for example, a breakthrough medical discovery, an answer to an ongoing medical dilemma or unmet medical need, or a new approach that improves on an already-approved product or technology.

It's that last example where Israel-based Prolor Biotech (PBTH) may excel.

SIRI: The SiriusXM Radio (SIRI) stock opened the new trading week on a high note as the market dove around it, in part due to swirling rumors that Liberty Media Corporation (LCAPA, LCAPB, LSTZA, LSTZB) could be tuning up for a full takeover of the satellite radio company.

A move by Liberty last week to streamline its stock structure raised eyebrows when Liberty President and CEO Greg Maffei stated the following in announcing the move:

“The board of directors determined this was the right move to increase the value for both Liberty Capital and Liberty Starz shareholders by eliminating the ‘tracker discount’, increasing liquidity in the stock and creating a stronger acquisition currency."

Key emphasis on "acquisition currency."

Improving numbers for SiriusXM have renewed the enthusiasm from the long investors, while positive coverage of the company has started to flow again as a recent upgrade to 'Buy' by a Lazard analyst demonstrates. Along with the Lazard upgrade came a $2.25 price target, which combined with the buyout rumors to push SIRI higher in a down market.

The economy might still be in the tank in the United States, with consumer discretionary spending down, and the global economy may still be slumping along displaying tepid growth, if any, but the old saying goes, "People still have to eat."

With that in mind, many of the staples in the US restaurant business are taking their game overseas into markets still booming for new brands. Here's a few names that you might recognize, and some you might not, that are out to repeat domestic success in high-growth international markets:

McDonald's (NYSE: MCD) may be the recognized leader of US restaurant brand growth overseas, with golden arches appearing in 119 countries around the globe with locations just about right on top of famous historic sites such as the Pantheon in Rome and The Great Pyramids in Egypt. In Europe, as well, McDonald's has made such and inroads over the past couple of decades that the street corners in every major city - and many not so major - resemble those in the United States that are surrounded by the fast food restaurant chains of your choice; namely McDonald's.

Last week held a series of nice rebounds as the news from Europe started to improve. Here's a few stories to watch for the coming week....

SIRI: With rumors still swirling that SiriusXM (SIRI) is on the hook to be fully bought-out by Liberty Media (LCAPA, LCAPB, LSTZA, LSTZB), investors are paying extra attention to the stock that is already one of the most actively-traded stocks on the Nasdaq. Shares flirted with the $2 mark on Friday, before settling down and closing at $1.86.

With the holiday gift-buying season now in full swing, SiriusXM investors will be expecting another solid fourth quarter, especially with this being the first full quarter of next-generation receivers on the market.

SIRI recovered quickly after dipping to below $1.50 for a period a couple of months ago....

Success for a small biotech or developing pharmaceutical company is often measured not only by the technology of its pipeline, but also by the ability of a company to position itself to be in the right place at an opportune time. Possessing a technology that could potentially provide a solution for a high profile, unmet medical need generally fits the 'right place at the right time' bill, and NovaBay Pharmaceuticals (AMEX: NBY) have just have that in its novel proprietary technology that is being investigated as a potential solution for today's medical dilemma of antibiotic resistance.

When introduced into society seventy years ago, antibiotics changed the shape of medicine. Having been so widely-used since then, however, the infectious organisms against which the antibiotics are administered have grown increasingly resistant, and sometimes immune, to today's antibiotic treatments....