Microcap Superstar’s Identity Crisis

  • Breakout science has Wall Street buzzing.
  • Yet a deeper analysis reveals an unusual anomaly.
  • An early “rebalancing” is needed, ASAP.

PolarityTE Inc. (Nasdaq: COOL) ranks among the biggest gainers of the year.Shares are up a staggering 403%.

Yet despite such tremendous momentum, the company is still worth less than $100 million (in terms of market capitalization).

So does the fact that PolarityTE carries a valuation of a measly $67 million bode well for its future prospects?

I studied PolarityTE’s breakout science, and here’s what I discovered…

  1. The science is showing promise regenerating skin in pigs.
  2. Human trials could begin later this year, according to management.
  3. If proven viable, the science would fill a void in the medical market, as burn and wound victims have limited options.
  4. PolarityTE’s CFO just acquired 100,000 shares of stock.
  5. With $3.8 million in cash reserves, the company’s operations aren’t in immediate danger.

So the stock is a screaming buy, right?

Wrong!

Believe it or not, PolarityTE’s primary source of revenue is from the sale of video games.

Yes — this is a video game developer trying to break into biotechnology.

Talk about an identity crisis!

If you’re a shareholder, please consider an early rebalancing strategy.

My senior analyst, Martin Hutchinson, gives you all of the details below.

Ahead of the tape,

Louis Basenese
Chief Investment Strategist

Microcap Superstar’s Identity Crisis

Question: Martin, you’re helping us compile the ultimate library of important investment catalysts. What I mean is baseline concepts that every investor should know.

Today we’ll be talking about the subtle intricacies of portfolio management. In one of our previous pieces we talked about asset allocation and diversification, but let’s unpack that a little bit more. We’ll cover some of the other subtle things folks can do to construct a proper portfolio.

Help us dive right in, Martin.

Martin Hutchinson: I think one of the most important things you can do is rebalance a portfolio every six months or every year. Because when a stock zooms up, it becomes a larger part of your portfolio, and that increases your risk.

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