Opened: VDSI

VDSI made a nice move out of its consolidation range, which produced a nice buy signal  This type of set up can work well in tougher market conditions.  VHI had a similar setup last week, which produced some very nice gains.

Increased positions: HCLP

Wow, does this stock love the 10 Week MA, after another successful test, I increased my position size by 30% @ $62.43.  HCLP is consolidating here and is forming a flag on the weeklies.  As impressive as this stock has been, my reason for adding to HCLP was not because it again held the 10WEEK MA before staging a bullish reversal.  Rather, it is what the other fracking sand stocks are doing right now.

Position cut: LRAD

Sold off 20% of the LRAD for a 3% gain from the initial buy. I'm position up a few cents on the trade.  This is a risk control exit as the momentum seems to have left. I'm also not pleased that the CFO exercised her options and dumped stock at 3.30.  Still the selling has been on low volume and the buying has been heavy.  I'm still bullish here. I would like to see it find a resting spot in the 3.20s until the 10ma catches up with it.  But If that doesn't happen, I would rather not be holding a ton of stock.

Closed: VHI

This was a range breakout that went the distance.  I started the position big and then phased it out.

Entry: 7.04
Exit 1: 7.18  (+1.96% , 8.45% position)  This was  a risk control exit.
Exit 2:  7.47 ( +6.10%,  22% pos)
Exit 3  7.79  (+10.65%,  20% pos)
Exit 4   7.57 (7.53%)   50% pos)

I got a nice 4 day run from this consolidation breakout.  That's about all this market has been giving.  I had hoped that it would consolidated in the 7.70s and stage another move but when it did not I decided to get out on the remainder of the position.

Closed HPJ: Took gains over 31% in 3 days!

HPJ popped big this morning.  I started selling into the move first at 6.75 with the remainder of my position at $6.90.   Gift horse mouth sale.

Trade Summary:
Entry: 5.26  1500
Exit 1.  5.51  (20%)   +4.76%
Exit 2:  6.75 (53%)   +23.6  
Exit 3. 6.90   (27%)  +31.2%   
Total +3.4R  

This is about as good as it gets for 3 days. As much as I liked this chart, the gap in this morning was a take profit signal wrapped up in a bow.  You don't want to be the last one at the party.

Position summary: LRAD, HCLP, HPJ, CDXS, VHI, NOK,

Still a lot of bullish action in this market.

HPJ: Decent move today as it kept about half of the move

HCLP: 10Week Ma holds puts in a bullish reversal on the day.   EMES and SLCA are really pushing.  HCLP should follow.  A nice start on the week.

LRAD: pulled back on low volume.  Tomorrow will be telling. Will it resume the move or pull back?

EJ: Still in the "noise phase" after the initial breakout was thwarted.  So was the follow through on the selling.  I'm still bullish on in.

VHI had every reason to pull back but it pushed ahead. I'll stay in for now.

NOK: Just noise.  No reason to sell for me.  OR to buy if you are not in.

New position: PIP

From my watchlist,  I picked this little gem as it broke out of its pendant.

Here's what I like about PIP.

It just won its court case but its damages were not awarded yet.  On the low end, (SIGA's position) it stands to be awarded 50 Million.  On the high end it could be awarded up to 500 Million.   It's sales were 14.5 Million and its market cap is just 124.21 Million.  Point being, regardless of the number that is awarded, it is huge for this company.  The number should be announced by the end of next month.  I anticipate the reaction will be huge.  Stop < 2.00.  where the gap was tested.

Increased size: LRAD, EJ

I've previously mentioned my reasons for entering LRAD, which include earnings blow out, conservative management, stock buy backs, and cool products.   This can be a huge gainer if the international growth is sustained.  After the market closed on Friday, we got one more piece of supporting evidence for my Big Gain Hunting thesis --- insider buying.  A director bought last week at $3.03.  If the insiders are comfortable buying here, then so am I.  I increased my position at $3.16 this morning.  The stock price increased significantly after that point on good volume:

EJ: I feel this one is very undervalued so I added 60% to my position. Not much action as of yet.

Partial closes: HPJ, VHI

I had full positions on over the last week and it paid off handsomely today with several large % moves. LRAD 8.88%, CDXS 3.35%, HPJ, 7.06%

Since I hit my margin pretty heavy last week and was rewarded there is no sense in tempting fate.  I decided to trim some positions a bit.

VHI: It's forward progress has stalled volume dropped.  Still, I was encouraged that VHI did not give its recent gains back had it moved in that direction I would have sold my entire position.  Instead, I sold 25% off at $7.79 and I am now holding 1/2 of the original position.

HPJ:
Great move today. But because it is susceptible to a disappearing bid and quick drops, I didn't want to be holding the size I was holding when it drops.  Sold off 20% AT 5.51.  Overall HPJ is still looking very healthy and I anticipate there will be some continuation of this move.

Closed: HIMX

So HIMX pulled the pop and drop on day 2 of the breakout.  I sold 30% of my position on the pop at 8.50  and I sold out the remainder as it faded at 8.16

My breakout anticipation entry worked very well as it popped from consolidation as soon as the 10MA hit the pice.  At the time, I commented that I thought the breakout would have been stronger had it not started from an overbought stochastic and RSI reading.  I was somewhat surprised by the strength of the initial move given this dynamic. Ultimately, the overbought stochastic caught up with HIMX and the stock fell.  I was fortunate enough to sell a portion on the pop. 

Pull backs to the 10 can be bought with the sweet spot between the 10-13.   

Entry: 7.76

Exit 1: 8.50

Exit 2: 8.16  .9 R

  

Week in Review, position summary

This week was very good for the bottom line.

Nok: +.43 on the week. I've owned this before the MSFT buyout and have over 100% gains.  Just when I think its done and I should sell it for a better opportunity it keeps going. This chart would look even better when you consider the .51 special dividend--putting the stock at the equivalent of $8.69.

 CDXS

I have high hopes for this one as a turn around play. The GSK deal set this in motion.  I was very pleased to see a 60,000 share insider buy this week (higher than what I paid). Its nice to see it trend up following the quiet period basically tracking the 10MA.

LRAD: Great earnings = big move I initiated a position as it pulled back 10%.  I looks to have found a base here. An insider buy was announced today.  I plan on adding as well.

HIMX:  I feel like I have a cyrstal ball on this one. I initiated the position on Tuesday and predicted this would get a kick once its 10MA catches the price.  TA DA!

HCLP: It held the 10 Week MA as it has all year.  I'm up slightly in this position but I believe a bounce is imminent as SLCA and EMES have continued their moves.  

EJ:

opened today.  Cup and a handle breakout:

HPJ: Another pick up Today. Closed about even after pulling back from its run. As long as it holds the gap, I'm bullish.

VHI: very pleased with the move out of consolidation. 

Partial close: VHI

This one has rocked it this week.   I took some partial profits this morning. $7.47.  I retain 66% of the original position.

To date, I've realized .35R and have 2R unrealized.

Opened EJ

This one has been a favorite of mine. It's currently trading for less than the value of its LEJU holdings 75% of LEJU.  Anyway, LEJU takes off and EJ was in a consolidation range, which if I were artistically inclined I may call a cup and a handle. -- A little looser than I would prefer but nonetheless, I felt it merited a position.

In 11.98 stop @ 11.20.  1.5R.   A bit higher than I normally would risk but I feel that the odds are aligned as LEJU has just exploded:

It's  not very often you get a chance to buy a good technical set up for a company that is trading significantly below the cash value of its assets:

Opened HPJ

I opened HPJ today.  It broke its range on high volume, sold off but held the gap.  Today was positive so I bought.  Ideally it sets into this higher range and makes another move towards 6+ .  Bought 5.26.  Stop < 5. R.75

On the weekly we have a high volume breakout, would look better if it could look very positive it continues to trend next week.

Opened: LRAD

This is one that has the potential to be Taser 2.0.  I've been stalking this one since it was in the 2.70s.  It pulled back at one point over 10% so I pounced and picked up a starter position. I anticipate that it could pull back more as it is still very extended.







So why do I like this:

Fiscal Third Quarter 2014 Financial Highlights

• Revenue: Fiscal third quarter 2014 revenues grew by $5.8 million or 271% to $8.0 million, compared to $2.2 million of revenues in the fiscal third quarter of 2013.
  • Strong demand from international markets continued to drive growth, including the delivery of a $4.0 million order for border security to a country in the Middle East.
• Net Income: Net Income of $1.9 million, or $0.06 per diluted share, increased by $3.0 million from a loss of $1.1 million, or $0.03 per share, reported during the fiscal third quarter of 2013.
  • Gross profit of $5.0 million, or 63.1% of revenues, compared to $915,000, or 42.4% of revenues, due to the strong revenue growth, favorable fixed overhead absorption and favorable channel mix.
  • Operating expenses increased by $1.1 million or 53%, primarily due to commissions paid to third party sales representatives, bonus accruals for meeting forecasted performance targets, and salaries, travel and consulting fees related to business development personnel, partially offset by a decrease in legal expenses due to a lawsuit in the prior year.
• Balance Sheet: Cash totaled $21.2 million at June 30, 2014, an increase of $5.4 million from the $15.8 million reported at September 30, 2013. Working Capital increased to $26.6 million from $23.7 million over the same period.

Nine Months Ended June 30, 2014 Financial Highlights

• Revenue: Revenue for the nine month period ended June 30, 2014 totaled $17.2 million, representing an increase of $8.9 million, or 107%, from the $8.3 million for the nine month period ended June 30, 2013.
• Net Income: Net Income during the nine month period ended June 30, 2014 totaled $2.6 million, or $0.08 per diluted share, a $4.3 million improvement from the $1.7 million loss, or $0.05 per share, reported for the nine months ended June 30, 2013.

"Increased product offerings, additional business development staff and support, and continued expansion of international markets offset domestic defense budget reductions, and led to nine-month revenue that exceeded revenue for the full fiscal year 2013," commented Tom Brown, President and CEO of LRAD Corporation. "Our fiscal third quarter, in particular, was positively impacted by sales of our border security solution, the LRAD 2000X, which saw a $4.0 million shipment to a Middle Eastern country to assist in their border and perimeter security program."

LRAD is also doing a share-buy-back where they are retiring the shares being purchased.

VHI: Opened

I opened VHI today after a nice break from a consolidation. Love that it closed at the day high. I took a pretty big position on this but sold a couple hundred shares at 7.18.  I still have a large position looking for continuation.

Opened HIMX

I opened HIMX yesterday.  I love the little shelf that it has built after its early August run.  It is building a nice tight range.  If I had to guess, I would speculate that it will get its next kick upwards after the 10MA reaches the current price.  I included the year long chart to show how well the 10 and the 13 MA tracked both the up and down moves.  The 10 MA should collide with the price in a day or two at that time look for the kick, which is why I'm in now before that occurs.  But the ultimate breakout will be stronger if it can stretch the consolidation area for another week. 

Entry: 7.76

Stop 7.40  

Closed BLUE

This had a nice set up.  Volume was a little low but it turned out alright.  I sold a 1/3 of my position off into the morning's strength, but despite the strong A.M. it faded.  I don't like faded

Despite some early morning potential, it faded.  So I sold the remainder as it came in.
Entry: 36.86
Exit 1: 37.60
Exit 2: 37.03  .2R

What worked?  Chart pattern with nice consolidation.  Selling partial position into strength.

I probably bought a little too high. I could have gotten .30 cheaper with some patience, which may have enabled me to hold on longer.  As a trading strategy, I would like to be able to hold on as stocks trends in my favor.   .17 gains are just not going to get me there.

Unplugged: closed plug

This trade just goes to show that you can be absolutely correct on your thesis but use options  and you still can lose despite  a big move in your favor.  I was pretty bullish on PlUG based on my research of studying its prior mega-move.  I took an options position Sept. 7 calls for .41c going into earnings.  Plug was trading at $5.72 at the time. Earnings were very positive and PLUG gapped up and then faded as I suspected it would given that the beat was in the range of what I had suspected the revenue numbers would land. 

I attempted to get out by putting a portion of my position on the Ask but never got filled.  Thus, to hedge this move I sold 1/4 of my position the Aug 7. Calls.  So although I was partially hegdged I would need a big move to Break even. 

Mathematically that is  just is not a probable outcome for several reasons.  First and foremost, here needs to be a driver (perhaps a new deal would do it but to get 23% move  ($1.40 move on a $6.00 stock) with a big float is going to be tough.  Earnings have already passed, it did catch an upgrade and has not followed through.  The big surprise has already happened. While it will likely build a base it will take more than that to For that reason, I decided to shut it down.

If I had entered with stock instead of options, this would have been a big winner.  I would have certainly sold some of the gap and I would not be opposed to holding the remainder.

  

The damage:
Sept 7. C
Entry: .41c
Exit. .305c

Aug 7 hedge
Entry: .10
Exit. .03

-.3 R.  A small loss that I was unwilling to let get bigger.

Closed VRNS

I had hoped that this would reverse and give me a trend that could produce a 20-30% move.  It didn't happen.  When 20 broke I got out. 

Entry 1:  $22.15

Entry 2:  $21.62  

Exit 1:  $22.64 (sold pre-earnings rally to reduce position size going in)

Entry 3:  $20.65

Exit 2. 19.96  (break of 20)

So what happened?  I'll blame this one on recency  bias, as my previous trade in VRNS ran 5 points in my favor before selling off.  I had hoped it would find support and do so again.  There's no uptrend, it was relatively weak compared to the market.  I had several points where I could have exited for profits (indeed my initial exit was successful) but ultimately I paid the price. 

Opened: HCLP

HCLP has been one of my favorites this year.  I'm re--entering the sand box. 

I bought HCLP today at $61.66. Reason for the entry was the bounce off the 10 Week MA, which has been a good entry in this stock.  The Weekly Chart shows how well the 10 MA has supported this Stock's run.  The competitors remained strong.  HCLP's weakness was due to a secondary offering.   By comparison, EMES had announced a secondary and has already completely recovered.

Stop: Close below 10 Week MA. 

Opened: BLUE

I opened BLUE on Friday, nice break out of the consolidation, I also liked that it held the 50 MA.  Generally, if you can buy off a test of the MA you give yourself a chance for a profitable trade.

Entry: 36.86

Stop: 34. 

R. 1.5R

Closed: DSKY

After a slow start, my DSKy trade turned out pretty well.   I sold 1/3 off this morning on the gap 18.74 and the remainder at  $18.05 because I did not like the sell off at the end of the day. 

In sum, in at  $16.74

First out $16.10  (l-.64) 

Second out, $18.74  + (2. 00)

Third out $18.05 = (+1.31) 

Since it's an IPO not much to show in the way of the chart,  Ultimately cutting my position size was the key here as it enabled me to ride higher despite a slow start in this IPO. I correctly believed that I would make up for the initial loss if it did get a second wind like other chinese IPOs had done.  While it did not turn out to be the 2.25 R trade it could have been had I not cut the position, I end with a .5R single and I'm fine with that.  

Opened: Plug

This weekend I had researched some of the best performing stocks of this and past years. As part of my Big Gain Hunting plan.  I had intended to do a forensic analysis, press release by press release, 8k, 10k with the corresponding stock move.   One of the stocks I looked at was Plug.

I approached plug with the view that the run had been amazing and wanted to see how it had been done.  Following my research, I concluded that the run is not over:

I based that on last quarter's earnings Conference call and the related SEC filings: 

• "Already to date in 2014, Plug Power has over $80M in bookings – double the bookings from 2013. Plug Power attributes this increased growth to the successful launch of its GenKey business. The company expects to ship over 650 GenDrive units in the second quarter."  

• lPug Power’s full year 2014 booking target is $150 million. This year we have already almost tripled our backlog from 2013 and are more than halfway to our bookings goal for the year. 

• the factory has never been this active.
• Q1 was 165 Units so Q2 should have exponential growth.  393% 

The company's q1 performance was not remarkable, but it did reveal that Plug is quickly ramping up.   Thus, we have q2 earnings, which should show the first signs of progress on the expansion. 

q2 14 earnings

We got a bit of a preview of some of the highlights to look forward to in q2 from the q1 10K. 

Revenue in progress but not included in earnings:

• At March 31, 2014 and December 31, 2013, the Company had unbilled amounts from product and service revenues in the amount of approximately $223,000 and $184,000, respectively, which is included in other current assets in the accompanying condensed consolidated balance sheets. At March 31, 2014 and December 31, 2013, the Company had deferred product and service revenues in the amount of $9.4 million and $9.0 million, respectively.

• On April 21, 2014, we signed a non-binding memorandum of understanding (MOU) with Hyundai Hysco Co. Ltd., or Hyundai, to create a joint venture partnership to develop, manufacture and sell hydrogen fuel cell products and stacks for applications in countries throughout Asia using Hyundai’s advanced stack and plate technology. The MOU provides that the parties intend to finalize the joint venture by July 31, 2014.
• Plug Power’s joint venture with Air Liquide has gained momentum in Europe, 
• Stock offering to accelerate growth and improve margins (also dilute the stock, so pick your poison)
• Expand in to Asia and Europe (the Hyundi JV and Air Liquide) could make progress into that goal. I noticed that an Air Liquide director purchased shares in Plug.
• we expect total revenue to be between $16 million to $18 million compared to $7,497,274 q2, 2013. 

My Trade 

September 7 calls .41,  Will close out .15   take 1/4 @ .80  the remainder if we go parabolic. 

Reasons:  Nice compaction on  weekly chart, promising story in the works, which could surprise. 

Options were taking to lower earning risk not using front month to avoid theta decay.  

director

DSKY

Picked up some of the IPO trade @ $16.74.  It has not acted particularly well, So I cut back on the position by 1/2 at $16.10.  If it gets a delayed move like JD didd, I will still make money. If not, I've cut my risk.

*Note I'm playing around with chart options.  Yahoo is nice in that you can show 5 minute moves. Stock chart has all the bells and whistles but its is not as easy to publish.  Also, it does not have the news links,  which is why I've used Finviz.  I prefer it and Yahoo for researching.

LIME: Better for my Coronas than for my portfolio

LIME took off big on news that it obtained 180 Million contract.  I bought pre-market on the news.  $5.80 and sold premarket $6.15 .  This was a reactionary trade and although I made money, I'm not pleased with my decision making process. Based on my research, I do not believe that this is  a Big Gain stock that some may think it is.

But let me run through the process:

• Step 1: Big move after neglected period with high volume?   

Yep!

Weekly:

Daily 

Many traders will chase these types of moves.  But I'm still not yet convinced that Day 1 is the must buy date. As often gaps are tested or quiet period will ensue 2-3 weeks later on a weekly chart.  That can be the best low risk entry point.  In my opinion, trying to buy immediately is asking to be chopped.

Observation: If Lime is indeed a Big Gain stock, then there is still time to buy as a better opportunity to enter will present itself.

Since Lime easily passes the big move test on to step 2.

Step 2.  Does it have "game changing news?"

"Lime Announced it has been awarded approximately $180 million of new utility program business." 

Lime has 3 Million shares outstanding and even after this burst it only has 18. Million market cap?  Sales 10X market cap, Amazing. That could be a recipe for an explosive move. Right? At first glance, I might be tempted to answer this in the affirmative. ( In fact, I did which is why I took a position. )  After more research, I don't think so.

Here's why.

First, and foremost, I question the legitimacy of the 180 award.  According to the PR it will be earned over 5 years.  Still a huge number but obviously more realistic. But here is the language that I view as the caution flag:

"The recognition of the potential revenue of these awards would occur over five years and depend on the receipt of certain regulatory approvals and Lime’s ability to sell sufficient program services."

So how much revenue do the legitimately expect to earn? Is this simply 180 million program that LIME has  been accepted into as well as other companies?  I do not know the answers to these questions.  

By Comparison, when CDXS announced a big deal with GSK, they called a Conference Call so that such questions could be asked. (Thus, I know CDXS expects to realize 11 Million this year)

Given that this award would be so much greater than any other revenue quarter I'm leery of taking it at face value.

• Caution Flag Number 2: Shady history
• Numerous Reverse splits 
• numerous warrant agreements w/ insiders
• Warrant deals often cause dilution allowing insiders.
• Prior restatement of earnings
• Class Action lawsuit  (LIME paid over 2.5 Million to settle one suit, it appears another is still pending. They expect that D/O insurance will pick up tab.
• SEC investigation

The company did fire its prior CEO so maybe it's gotten clean.  In my opinion, it still sounds too much like a pump and dump.  I'll keep it on my radar as q2 earnings and conference call may answer some questions

Lime reports q2 earnings on August 14.  One thing I'm certain of is that we will now see some analysts now attend this call.  q1 there were none. 

The key question is how likely is LIME to obtain additional revenue? How much? and when?

Closed: Stopped out of CRR

Not a surprise here.  My stop at 104 filled at 103.92.  It then got hit and it again traded down to 100.85 before staging a reversal. This was a reactionary trade  that I was too soon.

I should mention that CRR did put in a nice bounce, I would not surprised to see the bounce continue. The follow through on Friday's move is the time to play look for a move to 115...without me.

I should note that the bounce of 2nd test of the 100 low might have been a decent place to attempt an entry.  The risk was probably low because you would know to get out immediately if it failed.

On that theory let's look at  Thursday sell off  to  Friday's rally.

Friday.   Boot and rally. But look at that volume on the close.  That ain't joe 6 pack.

CDXS: Big Gain Hunting.

CDXS is a stock I've been tracking since its announcement that it had signed a significant deal with GSK in which in anticipates receiving 11 million this year.

This news caused the highest trading volume in this stock ever.   I had previously traded this move. Buying the gap high but fortunately selling even higher.  In fact, I sold the high point on the gap $2.65, clap, clap yeah.  

Anyway,  I  kept it on my watch list and have continued to watched the action.  The gap has held and It appears to be basing for the next move:

 I've begun accumulating. I have taken my initial position @ $2.13 with hopes of picking up more.  My pull back orders have not yet been hit... again a good sign.

So why do I like CDXS for a big move?

• Neglected stock with a major move.
• Insider Buying
• Game changing new product
• Huge potential market.

But first some context. In Q3, 2013 CDXS was in a tail spin.   Quarterly sales dropped 95% as it exited the biofuels market.  The company then engaged in a turn-around plan beginning to focus their efforts on pharmaceutical sales and it began cost cutting  the unnecessary divisions. CDXS summed up 2013 in SEC filings (DEF14A): "Our company and executives faced significant challges in 2013 as the company repositioned itself strategically." 

In Q4, 2014 the Company refocuses its attention and sales efforts to pharmaceutical companies.  During their CC, they noted that the potential market is huge :

"We estimate that over 30% of all the world’s small molecule drugs would be produced at lower cost were they to be built deploying biocatalysts that we can engineer for them." 

But after Q3 CDXS had been a forgotten company. Indeed no analysts were even present at the CC.
The  Q1 Conference Call was focused on turn around  "After a dynamic transformative year now behind us, we are driving the company full speed ahead and fully focused on the exceptional opportunities that lay ahead for us in biocatalysis."  In other words,  after a shitty year things are going to get better. 

• "2014 is shaping up to be a breakout year for Codexis." [note plug's ceo used similar langaguebefore its stock shot up 100%]
• We are going to accomplish that through driving topline growth at continued healthy gross margin mix, effecting responsible cost reductions, and preserving our balance sheet. Revenues and gross profits for the first quarter of 2014 were in line with our expectations.
•  current quarter, a top-10 pharmaceutical company has committed to purchase a drug intermediate from Codexis manufactured by AMRI, using Codexis' biocatalyst technology. This order is scheduled to be delivered in 2015, with a small portion of the order to be completed and recognized later this year.
• Regarding our business with the top 20 global pharmaceutical companies, we now have master service agreements singed with seven of the top 10, and 10 of the top 20 pharma companies.
  
  While I appreciate the optimism, it will not make you money.  At this point, there is still not much in the way of revenues and the anaylysts that showed up did not seem too interested.  Only a few questions.

 Then,  last month, CDXS announced a new multi-year with GSK.  They even felt it was a big enough deal to call a conference call just to answer questions regarding the deal.  Last week, they announced Q2 earnings, which were not great.  Of course, the GSK deal would not be reflected in those numbers.  The tone at the recent conference call, however was much different:

• It is a very exciting time here at Codexis and, as promised, you are seeing the key deliverables for the breakout year of 2014 fall in place.
• The combination of these positive developments, along with our proven cost-controlled discipline and prudence, is enabling us to today substantially improve our financial guidance for fiscal year 2014.Specifically, we now expect to generate a positive cash flow in 2014, a major financial milestone for the company and one to be delivered well ahead of any prior expectations. We’re very pleased to review each of these positive developments in today’s call with you.
• But really, what gets us excited every day is doing things that were previously not possible working with our customers like Merck and GSK to create new enzymes that can solve important problems like the clean manufacture of a new drug or a protein therapeutic that can, itself, treat a disease

CDES also discussed that The CodeEvolver license, like we just executed with GSK, is a natural alternative for us to present to customers equally convinced as we are on the wider prospects for applying biocatalyst or protein engineering more generally. 

In addition to GSK, they mentioned that they  executed an MSA with a second major customer in the wider fine chemicals arena outside of pharmaceuticals. Apparently there is a Non-disclosure Agreement so the customer identity cannot yet be identified.

Negatives? 

CDXS technology had been licensed for a Hepatitis C Drug which is decreasing in use

• The decrease in product revenue was primarily due to the expected loss of our biocatalyst and intermediate sales to customers in the hepatitis C drug marketplace as a result of both unfavorable market pricing and newer products entering the market along with a one-time enzyme inventory sale of $2.1 million to Arch Pharmalabs Limited recorded in the first quarter of 2013.
• Product revenues were relatively modest in the quarter and the products that we made sales on this quarter were generally slightly lower margin mix, not much but slightly lower margin mix than they have been in recent prior quarters.

CodeEvolver Game Changer?

In my opinion, CDXS contract with GSK for codeEvolver merits a position in this company at these levels as it supports the turn around theory. 

• We are eligible to receive up to $25.0 million over approximately the next two years, $6.0 million of which was paid upfront in July 2014 after executing the License Agreement and an additional $19 million subject to satisfactory completion of technology transfer milestones. We also have the potential to receive numerous additional milestone payments that range from $5.75 million to $38.5 million per project based on GSK's successful application of the licensed technology.
  
  The have already received the first payment and will get the second shortly.  This is will be recorded as cash on the Financial reports rather than revenues. 
  
  Another deal along the lines of GSK could do wonders for this stock.  However, CDXS mention at the CC that these deals are very complicated and take a long time to negotioated.  They thought only 1 or 2 a year were feasable. 
  
  CDXS appears to have made some inroads on its other product lines as well.  
  
  They have master service agreements "MS"A with 8 of the top 10 pharmaceutical and 11 out of the top 20 pharmaceutical companies 
  
  The analysts were impressed:

Well's Fargo Analyst: "It really sounds like a wonderful program that you’re entering into and I’m very excited by what looks like a golden age for you guys. Congratulations."

I would like to see more to see more revenue on the balance sheet and trading trading volume.  I do not yet feel that this stock is  a candidate to go parabolic. That being said the turn around is in effect, it looks like its working and I see this moving to the $3 - $4.50 range since it was coming from a level where it had been completley written off. 

Potential Triggers:  New Licensing agreement, Analysts upgrade, or improved earnings

STOP: 1.80.   .375 R.

Crr bounce play

CRR looked to be waging a reversal after a huge sell off.   I bought on the anticipation that the rebound would continue @ 108.43   stop at days low 104.

Unfortunately the move was faded my stop was not hit but the action does not look good.   Again, I need to remember to only try these types of trades if the reversal continues at the closing hour.

Closed EMES

I bought the beginning of the pull back.  A day early perhaps but I rode out the reversal and Sold out today for a healthy gain.

Entry: 108.46

Exit: 114.67  (+6.21) I also picked up a 1.17 dividend  for a total on the trade of +7.38   6.8% Total 1.3R

I was saved on this trade by the strength of overall of the industry.  Instead of trying to by "cheap" I should have waited until the reversal was confirmed.  Had I bought the day after the reversal candle, I would have gotten a much safer entry if not a better price.

I took profits today because it rallied in the morning off HCLP's earnings which were very strong. HCLP then started to get sluggish and sold off.  Rather than wait around and see what happens,  I decided to get out as EMES has earnings tomorrow and I think it is likely that it could sell off despite fantastic earnings.