More information on Environmental Solutions is available at www.cleanerfuture.com,
or contact CEO Bengt Odner at 905-947-9923, fax 905-947-9924.
[Editor's Note: Tony Velocci is a senior editor at McGraw Hill.
He writes for numerous business, financial, & general interest publications,
including Fortune, Institutional Investor, Nation's Business, Conservative
Speculator, & The Robb Report. He is a recognized authority on the
aerospace & air transport industries.]
I pick these special situations from those presented to me each
month by my network of brokers, market makers, PR companies, investment
bankers, venture capitalists, & key people in various industries.
My primary criterion is my opinion of the stock's potential to double
or better in the next six to 12 months. Once a Sneak, a company
becomes a candidate for the "Situation of the Month" coverage in
a future issue. Our decision concerning which to cover in a more
detailed way is based on what we find in continuing investigation.
I may give special attention to a Sneak I did a year ago, or one
from the last issue; do not attach significance to timing.
I will, however, do updates on those Sneaks I continue to follow,
either in the "Update Briefs" section of the newsletter, or in "Larry
Oakley's Daily Comment" at WallStreetCorner. I suggest you go there
Some Sneak candidates will be covered in "Larry Oakley's Opinion"
or "Larry Oakley's Weekly Stock Pick" sections of WallStreetCorner.
I suggest you check those two editorial venues each week.
While Sneaks are preliminary recommendations, do not use them
for investment decisions unless you decide on the basis of facts
you uncover in your own investigation. Use our "Financial Navigator"
at WallStreetCorner to get more information on any stock. Keep in
mind that the codes listed after each Sneak are preliminary, reflecting
my first impression. They are subject to change based on further
Codes: At the end of each Sneak Preview & Update, there
are three codes. They have a rating from 1 to 10. Those numbers
reflect my personal opinion. Please -- do not take action based
on my opinion alone. Do four things before taking action: (1) Read
my original writeup to get an overall feel; (2) Get the latest 10-Q,
10-K, corporate profile, & news releases; you can access them at
www.WallStreetCorner.com by using "Financial Navigator;" (3) Study
them; & (4) Call a key member of management to get a final impression.
If anything bothers you regarding that call, pass. There are lots
of situations. Do not invest unless everything about a situation
feels good to you.
"R" stands for "Risk Rating." A "1" means I view the
situation as having an extreme amount of risk. A "10" means very
low risk -- a much sounder, more financially stable situation. You'll
see hardly any with a "1" or "10" rating. I chose "10" to mean lowest
risk so the higher the number after each of the three codes, the
more favorable the rating.
"M" stands for "Midterm Appreciation Potential."
A "1" means I view the situation as having a small degree of midterm
("mid-term" is six to 12 months) potential. A "10" means really
outstanding midterm potential.
"L" stands for "Long-term Appreciation Potential."
A "1" means I view the situation as having a small degree of long-term
("long-term" is over one year) potential. A "10" means really outstanding
DynaGen, Inc. (OTC BB/DYGN & Boston/DYG) develops, manufactures,
& distributes generic pharmaceuticals. In some states, pharmacists
are required to dispense generic drugs -- an attempt to save the
consumer money, because generics are much less expensive, & are
the bioequivalent of the brand name drug.
The generic drug market was $15 billion in 1998, & about $20 billion
of branded drugs will be coming off their 17-year patent protection
before 2005. DYGN used to make proprietary drugs, & since 1996 has
divested itself of a non-core business & out-licensed or joint ventures
its original products. It is exclusively in generic drugs now. It
specializes in lesser-known off patent branded drugs that have little
or no competition. In some cases, DYGN is the sole generic supplier
of a drug.
DYGN's subsidiary Able Laboratories, is one of the few generic
drug manufacturers with the ability to make suppositories, a multi-million
dollar market. Several such products are expected to be marketed
this year -- they have a market of $90 million/year.
On 3/8/2000, Able announced it commenced shipping Abletex PSE11R
60/120mg tablets in 100 & 500 count bottles, a commonly prescribed
drug used in treating symptoms of the common cold. In 1998, the
generic revenue for this product was about $25 million. This is
DYGN's third product launch since 8/99.
The transition to generic products caused some losses, but the
move should gradually result in profitable operation, once more
of the products are marketed. DYGN closed 3/22/2000 @ 0.86. Call
617-491-2527 ext. 232, fax 617-354-3902, or write 840 Memorial Dr.,
Cambridge, MA 02139. You can also call DYGN's IR firm, Investor
Relations Services @ 800-757-9229 or fax 904-409-0043. www.dynageninc.com
[R-5 M-6; L-8]
Health Express USA, Inc. (OTC BB/HEXS), a fully reporting
company, has designed & will open & operate, as well as franchise
"Healthy Bites Grill" fast food restaurants that fill a long-standing
void. Its foods are healthy.
It was created to satisfy the consumer-driven demands of health
& fitness enthusiasts, vegetarians, & others who are interested
in good nutrition & healthy eating, & want the convenience of fast
service. I saw an artist's rendition of the design & am impressed
-- it looks a lot better than Burger King, Subway, McDonalds, Wendy's,
Taco Bell, & all of the others that dot the landscape. The first
unit is already completed -- the grand opening is scheduled for
Like the other fast food places, Healthy Bites Grills will have
both eat-in & drive-through facilities. The big difference will
be the quality of the food. When I lived in London, I ate almost
exclusively at vegetarian restaurants. I'm not a vegetarian, but
the quality & taste of the foods they served was just so good, I
couldn't resist. There were more than 70 such restaurants in London
-- one better than the other. The folks who are putting Healthy
Bites Grills together have the same mindset regarding quality. If
they follow through & uphold their standards, they will do extremely
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