The timing is excellent to buy and hold the shares of SQI Diagnostics (SQI) for a 10X to 100X gain.  The share price at its all-time low in early March 2023 was 99.25% below its 2011 all-time high.  SQI shares trade in Canada (symbol:SQD) and also in the U.S (symbol: SQIDF).

Please note.  For why SQI Diagnostics has the best risk reward metrics of any stock that I have recommended since 1978 see my conclusion at bottom of the page.  Also view recent video Money TV interviews of myself about SQI and Andrew Morris, CEO of SQI at bottom of page.

Based on my 46 years of experience in the markets the best time to buy an early-stage medical biotech, medical device or testing company that has Intellectual Property (IP) which requires government approval, is after the company’s IP submission gains government approval.  Below is the typical IPO-to-government-approval share price depreciation/appreciation cycle for medical companies that have proprietary IP:

• • Company with IP raises money via public offering.
  • Clinical trials and waiting game for regulatory approval begins
  • Share price subsequently climbs to all-time high in less than a few years.
  • Share price trends lower and to all-time low since approval always requires more time than projected.
  • Government approval obtained at or near all-time low.
  • Share price climbs back to all-time high.

Sarepta Therapeutics, Inc. (SRPT) is a good example.  The chart below depicts that SRPT’s share price followed the cycle.  The high share price on the 06/04/1997 date of its IPO was $40.50.  After reaching an all-time high of $162.00 on 02/09/2000 SRPT declined to an all-time low of $2.70 on 11/21/2008.  On 09/19/2016, when Sarepta’s first drug was approved by the FDA, a share could have been purchased for as low as $28.10.  Since then, a SRPT share has traded as high as $181.83.  The share price eclipsed its 2000 all-time high on 10/01/2018.  For the approximate 24 months from the approval to the new high the share price multiplied by five times. 

The chart below depicts that SQIDF’s share price has also been following the cycle.  The share price on 8/12/09 its first day of trading closed at $1.78.  The shares reached their all-time high of $3.60 on 06/27/2011.  The share priced reached their all-time low of $0.027 on 03/02/2023.

SQI Diagnostics is a leader in the science of lung health. They develop and manufacture 15-minute point of care tests for respiratory health and precision medicine.   SQI’s tests simplify and improve respiratory distress testing, donor organ transplant informatics and post transplant patient monitoring.

In short, SQI helps doctors identify risks to their patient’s  lung health so they can make good choices and deliver the best  and most economic care possible.

SQI has developed the following completely novel tests that address unmet needs in respiratory health, which have either been approved by or are awaiting approval from the Health Canada, U.S. FDA and EU EMEA regulatory bodies:

• • Transplantable Lungs- SQI has developed TORdx Donor Lung Test -a novel diagnostic test with over a 80% accuracy rate.  This test will enable surgeons to know if a donor lung will be highly likely to do well in the recipient’s body  and to increase the unmber of lungs that are transplanted (LUNG).  Currently over 80% of all donor lungs are discarded because there is no test to help decide between good and bad donor lungs. Lung Transplants cost over $1,000,00.00 USD and are one of the largest profit centers for any hospital.  There are no diagnostic tests available currently, a surgeon simply looks and feels the organ for any impurities. To determine if it will be accepted.

In a recent announcement by the Federal Government is going to shake up the transplant business and how transplant organs are managed.  The new system is completely in SQI’s testing favor.  See “Troubled U.S. Organ Transplant System Targeted for Overhaul”, Washington Post, 03/22/23.

• • Covid antibodies- SQI’s self-administered test, The EXACT ANTIBODY TEST is the ONLY QUANTITATIVE test that measures all 6 biomarkers.  The level of antibodies is critical.  It indicates the degree of immunity for vaccinated and unvaccinated individuals.  This test with over a 99% accuracy rate will also tell you if your immunity is from a vaccine/booster or whether you had Covid.  If the antibodies are below a certain threshold the individual now can take control of their own health.  They can decide whether they want to take a vaccine/booster, socially distance or wear a mask or not go out in public.  This test is covered by most major insurance companies.

The majority of the world population mistakenly believe that they have immunity from Covid 19 from having the disease or having been vaccinated.  As more gain an understanding that immunity from both wanes over time the demand for self-administered tests will increase substantially.   See “A look at how antibodies from a COVID-19 infection and vaccination wane over time”, PBS 10/19/21

• • Respiratory diseases diagnostics (RALI-Dx Triage Test) tests- SQI’s RALI-DX was developed to be utilized by hospitals. RALI-DX is a triage tool aid doctors to make better treatment decisions – send patient home or admit to hospital  or to treat with advanced respiratory  care measures.  This test is currently approved by Health Canada.  In Emergency Room Triage, patients with respiratory infections or trauma are  either sent home to rest and quarantine or are admitted to the hospital because the probability is high for the lungs to go into distress.  RALI-fast will be a test, similar to the “heart attack” point of care test by Biosite, that will help doctors send patients home or treat them aggressively – no test currently does this – and all in 15 minutes.   50% of all intensive care unit (ICU) admittances are related to a patient’s inability to breath normally.   Thus, since all hospitals are overcrowded, every hospital on the planet is in need of SQI’s RallyDX diagnostic system.    It can cost over $10,000 a day to keep a patient in the ICU — even more if they are intubated.  A 15 minute test by SQI could significantly reduce this cost and overcrowding in the ED.

For more about SQI’s testing products see “Four Diagnostic Products in the Pipeline at SQI”, March 3, 2023. 

The table below contains the status of the approvals for SQI’s three key product lines by the U.S., Canadian and European Union regulatory bodies.   All three provide significant upside for SQI and its shareholders.

SQI Tests underdevelopment

• • RALI-fast is a 15-minute version of the test that is nearing completion and can be used to triage ED patients and to monitor ICU patients. This is a massive market — there are over 25 million patient days in US ICUs alone.  The ICU Test has been trialed in a leading ICU with very positive feedback. 
  • Breathe — a simple, take-at-home test for lung transplant patients that monitor for post-operation infection which occurs in over 55% of lung transplant patients, and another for organ rejection.  (Comparable is CAREdx). This test where patient’s breath is collected replaces a complicated, expensive and risky in-hospital surgical biopsy procedure.  Breathe tests extend SQI’s product line into the highly valuable post-transplant monitoring markets like NASDAQ listed CAREdx (symbol: CDNA) which at 3/30/23 had a market cap of $489 million.

At first blush the debt on SQI’s Balance Sheet indicates substantial risk.  However, the risk for the Balance Sheet is mitigated since $9.7 million of the $16.2 million in total debt were loans that were provided by the company’s board members.  Most importantly, three SQI board members (Insiders) hold 75.4% of SQI common shares and 86.2% of its outstanding warrants: 

The three key directors, are among the most prominent members of Canada’s professional investor and investment banking community. 

• • Wilmot Matthews, former investment banker and Vice Chairman of BMO Nesbitt Burns. He and his wife donated $25 million to city of Toronto for a park. 
  • Clive Beddoe, founder of Hanover Holding and Investment Company, which manages approximately $200 million. Also founder of Westjet Airlines whose investment banker was Wilmot Matthews.  
  • Gerald Connor, founder of Cumberland Private Wealth Management, Inc., one of Canada’s largest investment management firms.

The paragraph below is an excerpt from the company’s March 28, 2023 “SQI to Focus on Development of Point of Care Products In Respiratory Health” announcement.

“As a part of SQI’s new strategy going forward, the Company has reduced its workforce from approximately 44 full-time employees to 20 full-time employees to focus on maintaining and developing the Company’s key capabilities of clinical and regulatory expertise, managing outsourced product development and outsourced manufacturing. The Company expects to reduce its payroll and cash burn by approximately 50% on a monthly basis. In connection with this evolution of the Company’s strategy, SQI intends to entertain offers from potential buyers for the Company’s now, non-core business that is based on lab-based instruments. The Company’s leadership will remain intact, including regulatory, clinical and finance roles.”

On 3/24/23, SQI announced that its insiders would be selling their shares to utilize the proceeds to exercise the money warrants that they hold.  See “SQI DIAGNOSTICS ANNOUNCES PROPOSED INSIDER SALES AND WARRANT EXERCISES TO FUND COMPANY”.  The announcement stated that insiders, who held warrants in SQI, would be selling shares at the “prevailing market price”.  The proceeds from the sales were to be utilized to exercise the warrants they hold at exercise prices of $0.12 to $0.21 per share.

Conclusion

SQI’s strategy of having insiders sell shares at below the warrant exercise prices and then to utilize the proceeds to exercise the warrants they hold at prices which are above the prices the shares were sold for is not new.  The strategy was successfully deployed by the three insiders to provide capital to SQI on three prior occasions.

• • SQI Diagnostics Inc. Announces Warrant Exercise by Insiders, July 3, 2020
  • SQI Diagnostics Announces $4 Million Funding via Warrant Exercise by Insiders, December 30, 2020
  • SQI Diagnostics Announces Proposed Insider Sales and Warrant Exercises to Fund Company, February 10, 2021

SQI has the best risk reward ratio of any stock that I have ever recommended throughout my 46 year career.  SQI is an extremely rare opportunity for two reasons:

• • Established or added to their legacies- SQI is a “change and improve the world” project.  
  • Protected or enhanced their reputations- A failure for any company in which they are board member would hurt their reputation.  
  • Increased their net worths by at least $174 million

To finance SQI, the three whales utilize a strategy of selling their common shares at prevailing market prices when it needs capital.  They then utilize the proceeds to exercise their warrants which have higher strike prices than the price their common shares were sold.  Thus, these whales provide an extremely rare opportunity for suckerfish or whalesuckers to have a free ride on their backs (purchase shares in open market near all-time low) to make approximately 20 times their investment. 

ShinyPennyStocks.com recommends that buy price limit orders at $0.05 be utilized to purchase SQIDF shares.  For future limit price order changes and updates on SQI Diagnostics subscribe to ShinyPennyStocks.com. 

Below are Money TV’s 3/31/23 interviews of SQI’s CEO, Andrew Morris and myself about SQI.  

SQI Diagnostics

The very first stock which was recommended on ShinyPennyStocks.com was Upper Street Marketing (UPPR) in March of 2019 at a price limit of $0.50.  Due to the share price increasing rapidly the limit was raised to $0.85 and then to $1.00.  Then the bottom fell out after the share price reached $2.00. The SEC halted the trading of the shares because of irregularities in the company’s capital raising activities.   UPPR quickly became the site’s biggest loser.

What happened was extremely frustrating. I had believed UPPR, a Hemp grower had the potential to be a showcase recommendation for the newly launched ShinyPennystocks.com.  I had known Jim Janis who had introduced UPPR to me since when I worked on Wall Street in the 1980s.  Mr. Janis informed me that his intention was to file a lawsuit on the behalf of the shareholders against the company’s executives for mismanagement.   He asked me to help him obtain the financing to file a lawsuit.  In my March 2021 request for help message to UPPR investors and my contacts I said:

“I will fight tooth and nail for those who I have recommended something to which does not work out.  Throughout my 44 years I have realized that my strongest relationships were built from following up on the losing recommendations until they became winners.”

I provided my personal guarantee for the loan Mr. Janis obtained to commence the legal battle. The lawsuit was settled through negotiation in August 2021.  Joseph Earle, Gordon McDougal, and Mark Livingston resigned as officers and as members of the Board of Directors.  An aggregate of 60 million of their UPPR shares were canceled and returned to the company’s treasury.  The former officers forgave any money alleged to be owed to them by the company.

A new management team, Board of Directors, and Advisory Board was installed.   Mr. Janis became Chairman and CEO.  Former registered investment advisor John D. Quinn became the President.  The two have worked tirelessly to jump through all of the hoops to get UPPR shares trading again.

The new management team has made substantial progress:

• Tax returns with the State of Oklahoma are now current
• All fees with the company’s transfer agent, Standard Registrar and Transfer, are now current
• Most outstanding company debt has been paid or converted into common stock

The top priority is to complete the audit and reinstate the trading of the stock.  Auditable financials have been submitted to the firm’s accounting firm, Pinnacle.  The company anticipates the completion of the audit in late summer, barring any unforeseen issues.  The company intends to file a Form 10 registration statement with the SEC as part of the process to recommence trading on the OTC markets.

Upper Street Marketing’s future is very exciting.  UPPR Inc. has transitioned its business to develop products from Hemp which nurture the planet.  UPPR is now in the sustainable plant-based biomass industry.

• bioplastic pipes which replace lead pipes
• bioplastic bottles
• bioplastic drinking straws which replace plastic straws, i.e., fast food chains
• bioPlastic bags and packaging for foods
• bioCrete which replaces concrete
• plant based textiles
• plant-based foods

Their plan is to partner with the industry’s leaders, thought leaders and scientists to continue to create new applications and products to reduce the planet’s pollution and improve the health of its inhabitants.

As soon as UPPR shares are available new price limits will be established and subscribers to ShinyPennyStocks.com will receive an alert.  There is always the potential for a company to need more funds prior to their shares being traded publicly listed.  Accredited investors who might be interested to participate in a private financing, if needed, can fill out the form below.

What Jim and John pulled off with my help ranks as the most important accomplishment throughout my 45 years in the capital markets. To have fought the good fight, to have won, and to have the vast majority of the company’s outstanding shares erased ranks as the best ever war story. Throughout my 45-year career I have witnessed dozens of cases for which a small company’s shares went to zero due to management wrongdoings.  Mr. Janis was the first to do something about it.  The UPPR turnaround trumps all of my predictions including my September 2007 article for Equities Magazine in which I told my readers to get out of Wall Street’s five biggest brokers including Lehman, Bear Stearns and Merrill Lynch.

Visionary analyst and algorithm developer Michael Markowski, is presently in the process to produce an in-depth research update on Investiew (INVU).  He says the ShinyPennyStocks.com (SPS) report will be foundational and on par with his November 12, 2021, “Investview, Ridiculously Undervalued!” report. Michael’s report will reveal his rationale for why the share price could potentially go to $4.03 by 2027, a multiple of 66 times when compared to the $0.0589, 3/22/2022 closing price.    

Michael, who has been in the capital markets since 1977, believes that Investview will vie with Investools to be his best ever stock recommendation throughout his entire career.  His best ever recommendation to date was Investools (Think or Swim) shares at $0.24 in 2003.  

His Investview (INVU) recommendation is amazingly similar to his Investools recommendation.  Both of the bulletin board traded companies were in the investor education business. At 3/21/22, INVU had a double-digit Free Cash Yield which was also the case for Investools in 2003.  Investools shares increased significantly after they became listed on NASDAQ.  The company was subsequently acquired by Ameritrade for cash and shares in 2009.  Ameritrade was then acquired by Schwab in 2019 in an all-stock deal.  The total value (cash and stock) of an Investools share at 12/6/21 as depicted below was $38.04.  The multiple return for an Investools share through 12/6/21 was 119 times.  

The table below depicts that at 12/6/2021, the equivalent value of a share was $38.04, a multiple of 119 times.

To better understand why Michael believes that Investview will rank as his best ever stock recommendation view 4 min, 43 seconds video below.  It’s about his Free Cash Flow Yield (FCY) screen which was utilized to find the two most undervalued stocks (Investools & TRM Corp) in the entire US market in 2003.  TRM shares were recommended at a limit of $0.84 in 2003 and the shares were recommended to be sold at $18.45 in 2004.

This alert is being provided to ShinyPennyStocks.com subscribers since there is a tendency for the price and volume of the shares to surge after a foundational report about a particular company by Mr. Markowski is published.   The chart below is a good example.   It depicts that after the 11/12/21 report was published INVU’s share price surged from under $0.075 to $0.116 and to above SPS’ $0.10 limit price.  The green bars on the bottom right-hand corner of the chart depict that share buy volume was the highest for the entire period covered in the chart.  Note.  Michael Markowski does not hold INVU shares.   ShinyPennyStocks.com’s policy does not allow analysts to take positions in the shares which are recommended.

Michael is now and will continue to aggressively recommend that INVU shares have a 5% of a portfolio weighting.   It’s especially since he has predicted that the Secular Bull market which began in March of 2009, ended on January 4, 2022.  See his “Due to inflation’s effect on PE, S&P 500 to decline 45%” article.  The article explains that a new secular bear, the first since 2000-2009 began at the high.  Based on the prior secular bears which are depicted in the table below the S&P 500 will decline by a minimum of 47% and will have a minimum duration of 8 years.   The asset class which produces all of the long-term capital gains during a secular bear are small companies and those which have low stock prices.

The educational videos below about secular bear markets are highly recommended.  “Proven Secular Bear investing strategies” explains why low-priced shares and shares of small companies are best to own during the new secular bear market which has begun.   “Why the worst performing stocks during a secular bear were always the best performers of the prior secular bull” explains why high priced and blue-chip shares decline during secular bears.