Upstream Biosciences (UPBS.OB)

Dear Bottarelli Research Member,

I’d like to start off with a quick update on Harmonic (HLIT – NASDAQ).At first glance I wanted to sell HLIT based on their earnings report, but as I read and re-read the report I found some things that should increase their bottom line in the months ahead. The biggest thing I saw was getting rid of old inventory. This could be extremely positive for them. I’m also convinced that IPTV is here to stay — evidenced by HLIT experiencing demand in just about every country I can think of. With overseas economies exploding, these folks are sure going to be buying and using HLIT’s products, and I want to be positioned early rather than later. Not only that, but satellite TV is growing like mad — which is a major component that HLIT supplies and deals with. Based on this assessment, I’ve decided to add shares of HLIT at current levels, as the recent down-tick has offered you a wonderful second entry point. But let’s also place a cautionary stop loss order at $6.50 to limit our downside risk.

I also want to quickly address Dendreon (DNDN – NASDAQ) since we’ve had one heck of a run. In fact, the stock went from our $3.27 entry up to my $25.00 target faster than sin. As we lead up to their May 15th deadline, let’s take a cautious approach. I fully expect the “herd” to run the share price up — but I urge you to protect yourself at the same time.

In addition to owning the stock, I’d also recommend that you own the DNDN June 10 Puts (UK ORB). These puts are currently trading between $2.50 and $2.60, and it’s worth your while to buy them today. I’m still extremely bullish on DNDN and their prostrate drug over the long haul, but let’s not take any chances. In addition to owning DNDN stock, own a June 10 put as well — just to be on the safe side!

Now on to this week’s pick…

The company I’m about to share with you today is one that I believe is going to deliver us some big gains — and soon. They’re doing something that has been needed for years. You see, this company will give the medical profession the ability to understand the effects of certain prescriptions on patients before they’re even administered. Talk about life changing! I believe this will be huge — not only for employers, but also for insurance companies and individuals like you and me. If you’ve ever felt like a guinea pig after going to the doctor, you’re not alone. It’s not the doc’s fault , mind you, but they can only give you what they feel is best. This new technology could change all of this, and right now it’s under the radar of Wall Street. I’ve studied the management team, and they’ve been involved with some very successful companies in the past. I have no doubt they will again do it right with this unique little gem. The company is Upstream Biosciences (UPBS.OB), and let’s add shares to our small-cap portfolio under $1.35. Now here’s Bryan with his thoughts.

Sincerely,

“According to the Journal of the American Medical Association, each year 100,000 people die in the United States due to adverse reactions to prescription drugs”

Founded in 2004, Upstream Biosciences (UPBS.OB) discovers, develops, and licenses genetic-based diagnostics for cancer susceptibility and drug response.

Their proprietary technology is called a “data mining pipeline” which enables Upstream to locate and analyze genetic variations in certain regions of DNA. These diagnostic tests can aid in the early detection of cancer by identifying individuals with disease susceptibility. They’re also developing tests that can determine whether a drug will be useful or harmful to an individual patient based on their genetic profile.

This is rather important technology because as Mark mentioned above, more and more patients across the country are feeling like human guinea pigs after visiting the doctor. But the more telling statistic comes from the Journal of the American Medical Association, which says that each year 100,000 people die in the United States due to adverse reactions to prescription drugs.

Upstream Biosciences aims to use advanced science and DNA technology to eliminate the guess-work involved in today’s medical practices. Specifically, their genetic markers could help physicians determine the best course of treatment for prostate cancer patients. To fully understand what Upstream does, let’s review a typical screening process.

According to the Mayo Clinic, when a biopsy confirms the presence of prostate cancer, the next step is something called “grading.”

The process of “grading” is used to determine the aggressiveness of the cancer. The most common cancer grading scale runs from 1 to 5, with 1 being the least aggressive form of cancer and 5 being the most aggressive. These numbers are known as “Gleason Scores,” and they’re helpful in determining which treatment option is best.

But here’s the thing: According to the Canadian Cancer Society, the Prostate Specific Antigen (PSA) test — which is the most commonly used test for prostate cancer screening — does not discriminate between cancers that require treatment and those that do not. As a result, patients can endure unnecessary treatment with side effects such as impotence, urinary incontinence and even death. And that’s where Upstream’s genetic markers come into play.

Using genetic testing, they can help determine if a patient is likely to have an aggressive form of prostate cancer — which ultimately leads to a much better treatment plan.

As genetic testing gains acceptance in the mainstream medical community, I think Upstream Biosciences (UPBS.OB) is well positioned to capitalize on this important medical advancement. And for only $1.24 a share, I see little downside from current levels, so let’s add shares to our small-cap portfolio next week.

PLAY: Buy shares of Upstream Biosciences (UPBS.OB) at or under $1.35, good for the week.

Sincerely,