Danny  like  VPO  here is  on the prowl  for value stocks all  the time,  but   his track record is not very good this  year.  He highlighted ELR early in the year.  It  had a small  bounce    of about  30  %  but then  retreated quickly to less than the price at which he highlighted it.



He also singled out  CEZ    a stock   which I  held at  12  cents   when it was 13 cents.  It    never rallied  at all after his spotlight was shone on it.  I  think  it rallied to about   14    cents  a few months ago  but  now it  sits at 10   cents,    with tax loss sellnig around   the corner,  30  % less than the price it was highlight

Alot of my followers   made a killing on Hyduke  last year .  Stock was  50  cents when take over was announced at 1.37.  I  sold  the  next day.  My patience paid off as I  held that stock   for four  years  but always knew it was  too    good for  some one not to take  run at it.  Greedy people held out looking for a better offer,  the    offer fell thru   3 months later and now the stock  sits at 40  cents , a two  year  low,  with sales plummeting,   and a management team in disarray.


A few  of my  followers  then said to  me  VPO  what  is your  top  pick  value play    TODAY  , a stock  like Hyduke with limited downside  and enormous upside. That stock,   my  stock to hold and stick under your mattress  for  2014   is    Bellus Health Care. 


These are the reasons why.   It   has a small float after  an unpopular roll  back  a year ago.   Paul Desmarais (  Power Corporation )   owns 10  % of the shares. The Bellini family  (   company  founders  ) own  30 % of the stock.  Another  30 %  held  by  institutions.    Exactly like Hyduke with management and Board  having alot of skin in the game.

  Power's shares were purchased    in excess of a dollar. You are getting the ability to buy  at 60 % discount to what the billionaire bought in for,  and   less then  the   breakeven  price   of the other large shareholders. 


With markets toppy  there will  be   huge inflows into  other sectors. Underperforming stocks  can have huge rallies  when   good results have bene tabulated  or good  news is ahead.   RVX  went from  1.20  this year to as high as 3.80  before  their  results were   out for their drug.  It bombed and the stock   crashed.  BLU on the other hand  has   not one  but two  strong pipeline prospects,  one in phase 3   , the other  in phase 2,  and a non   core  division they can sell  off at any time  for    more cash  at their discretion when  market metrics permit  a good sale price.  They  are fully funded  to take their lead  product Kiatka  to  phase 3 completion.  They  have a partner who  is footing the entire cost for 50  % of sales.  There you have it.  A  play   that  is financially de-risked,  another pipeline stock in phase 2  ,and   cash enough until completion.   Like  RVX it will  at least triple in price as the  trial  progresses. I suspect    because of the other  assets it should hit two  dollars within the next  2  years  at some point. The patient  investor  will be rewarded with a   500 %   gain.  If the stock is  successful  it will shoot to 8  dollars.

The other caveat is IPO  on biotech in USA  for unfounded  pre  phase 1  companies are  going for  for  500  m to   a  billion.  Here   you have a company rich in prospects,  where other   investors gambled EARLIER  and  funded the several  hundred  million dollar pipeline but  now as a value investor  you can get in    on all that  prior R and D   for a pittance.Mark   my words,any pull  back in the markets will  lead to more  safe haven destinations, and with rising medical costs  the pharma/  biotech sector will   go to another   high.  And at any point in time a savvy  pharma  could easily come in  with a solid offer  prior to  phase 3 results.  Because  of the high break even  price of the large shareholders this ensures a healthy premium.  Note I  first highlighted   this stock  on the BLU  bullboard  when it was  27 cents.  Unlike  Danny Deadlock  whose picks never bounced more than  30  %  and  fleeting,  I  am alreadu up  50   %  in a few months.  The stock is consolidating  last week at 40 cents. Yours truly  VPO added another  50 000  shares giving me a total   like Hyduke of   just under  400 000  shares.


FRO  wil l become interesting when  metals start to shine,  but like all  Venture  stocks in the mining  space only  1  in a 1000  results in an actual commercial  mine.  BLU  is  the better play.


Danny   is a value investor  as  I  am   but lately he  has not been that good.  But we share the same philosophy  so  I respect  the gent.  He also highlighted IFR when it was about 6 cents. I purchased 200  000 shares and flipped at 11,  so  had it not been  for  that article  I'd  have  10  K  less in my account.