Kane Biotech (TSXV:KNE)

Kane Biotech is a small biotech company focused on development of anti-infection technologies for wounds and medical devices. On January 26th, the company had announced completion of an important milestone for its DispersinB topical wound care product. The milestone was completion of the  biocompatibility tests, which is the pre-requisite for a clinical trial. The company expects to apply for a clinical trial soon.

I have followed Kane for a little over a year now. On January 13th I advised the Alert Service subscribers of an exceptional opportunity with the stock due to expected completion of the biocompatibility tests, the potential U.S. Army deal, and the addition of Philip Renaud and Essam Hamza, both well respected investors who bring a lot of connections to the table, to the board of directors.  The stock has since gone on a wild ride, reaching a high of $0.205 before settling down to $0.125 yesterday.

At a tiny market cap of only $5m, Kane Biotech presents a good risk/reward opportunity for a potentially ten bagger return. The game changing deal for Kane could come from the U.S. Army or several other pharmaceutical companies with wound care products. The risk for Kane, as is for most other biotechs, is raising money if there is a market correction. Timing for the return on the investment is also a guess, although with each passing day the chance of a deal increases. This is a good pickup in the $0.10 range.

Sama Resources·(TSXV:SME)

Sama Resources continues to impress with a 33.3 meter intercept of  2.45% Ni+Cu from its poly-metallic Ivory Coast exploration program.  Right from the onset the company has set a target of turning this property into a major West Africa resource. Their claim is quickly turning into a fact and many people are taking notice.

The political situation in the Ivory Coast is becoming increasingly violent while the African Union members try to diffuse the situation peacefully.  Despite the on-going turmoil, Dr. Audet says the on-going exploration program is proceeding without interruptions and he is quite at ease travelling to the Ivory Coast.