[speak] ThurmSpeaks::Buying Stock in America After the Killing of Osama bin Laden (NSPH)

I'm blogging my stock market activities and Nanoshere is going to be a chapter in a book that I'm going to write (and probably self-publish). I've been blogging about Nanosphere since 28 April 2009. This ThurmSpeaks was posted on 6 May 2011.

We didn't have much money to invest, but we bought a tiny number of Nanosphere (NSPH) shares on 28 April 2009 after reading that President Barack Obama added Chad Mirkin to the President's Council of Advisors on Science and Technology (PCAST). We bought a tiny bit more a week later after receiving a paycheck. [Dr. Mirkin is a co-founder of Northbrook, Illinois-based Nanosphere. He is the Director of the International Institute for Nanotechnology and Center for Nanofabrication and Molecular Self-Assembly at Northwestern University. Mirkin is a guru scientist/futurist.]

In 2010, we remembered 9/11/2001 by buying some Nanosphere (NSPH) shares on Friday, 10 September 2010. On 4 May 2011, we bought some more Nanosphere (NSPH) after the United States of America killed Osama bin Laden.

NSPH (Nanosphere) Prices Since Going Public
   01 November  2007:  $14.00 (opening price)
   05 November  2007:  $22.04 (intra-day high)
   31 December  2007:  $13.99 (end of 2007 price)

   31 July      2008:  $10.47 (intra-day high)
   11 September 2008:  $ 8.06 (intra-day high)
   19 September 2008:  $11.33 (intra-day high)
   27 October   2008:  $ 3.04 (intra-day low)
   17 December  2008:  $ 7.58 (intra-day high)
   31 December  2008:  $ 4.35 (end of 2008 price)

   05 March     2009:  $ 2.71 (intra-day low)
   28 April     2009:  $ 3.35 (1st buy; Chad Mirkin joins PCAST)
   04 May       2009:  $ 3.35 (2nd buy)
   01 September 2009:  $ 8.61 (intra-day high)
   11 September 2009:  $ 7.51 (closing price)
   31 December  2009:  $ 6.44 (end of 2009 price)

   04 March     2010:  $ 3.20 (3rd buy)
   21 June      2010:  $ 5.63 (intra-day high)
   19 August    2010:  $ 3.12 (4th buy)
   31 August    2010:  $ 2.91 (intra-day low)
   10 September 2010:  $ 3.13 (5th buy; off-by-0.01 $Pi)
   11 September 2010:  $ 3.13 (it was a Saturday)
   31 December  2010:  $ 4.36 (end of 2010 price)

   13 January   2011:  $ 5.54 (intra-day high)
   07 February  2011:  $ 3.28 (6th buy)
   03 March     2011:  $ 3.14 (7th buy; $Pi)
   11 April     2011:  $ 3.04 (8th buy)
   18 April     2011:  $ 2.67 (intra-day low)
   29 April     2011:  $ 2.97 (bin Laden's last trading day)
   04 May       2011:  $ 2.78 (9th buy; Osama bin Laden killed)

Nanosphere reported 1Q'11 results on 27 April 2011. The following information was mined from the company's press release.

   $30,001,000 cash and cash equivalents; $0 debt
   27,759,000 weighted average number of common stock outstanding

Nanosphere ended 1Q'11 with $1.08 per share in cash and $0 of debt.

The following information about NSPH was mined from Yahoo! Finance.

   Major Holders:
   % of Shares Held by All Insiders and 5% Owners        :  52%
   % of Shares Held by Institutional & Mutual Fund Owners:  50%
   % of Float Held by Institutional & Mutual Fund Owners : 103%

   Short Ratio on 02011.04.15 (NSPH at $2.80):  23.1

   NSPH Short Interest via NASDAQ.com:
      Settlement   Short       Avg Daily   Days To
      Date         Interest    Share Vol.  Cover
      ==============================================
      04/15/2011   2,429,598   81,345      29.867822

Nanosphere is a highly speculative investment; NSPH shares could drop to $0 in nanoseconds. None the less, this stock has a "thin" float coupled with a large number of shares short and that can be a good combination for long-term investors. [Note: We bought NSPH for the first time on 28 April 2009 at $3.35 and again at $3.35 a few days later on 4 May 2009. Three months later, on 1 September 2009, NSPH hit an intra-day high of $8.61. We did not sell because we want to be long-term investors. On 4 May 2011, when we bought NSPH shares for the 9th time, it was exactly two years after our 2nd buy on 4 May 2009.]

On 6 May 2011 NSPH closed at $2.87, while our average cost per share was $3.20. In other words, our Nanosphere investment was underwater by 10.3%. Personal finances will dictate what we do with our NSPH shares, but right now we won't sell any shares until they hit $9.11.

Google.com::Quote::NSPH [11/09/2007-05/06/2011]

These days I spend a lot of my time learning about the future and our investment in Nanosphere is categorized as an investment in our collective future.

Update::2011.05.10

Nanosphere issued the following press release prior to the market opening on 10 May 2011: "[...] public offering of 13,640,000 shares of its common stock at a public offering price of $2.20 per share. In connection with the offering, the Company has also granted the underwriters a 30-day option to purchase up to an additional 2,046,000 shares of common stock to cover over-allotments, if any." Last week, on 4 May 2011, I bought NSPH at $2.78.

I bought some more NPSH on 10 May 2011 at $2.13. NSPH closed at $2.22 on 10 May 2011.

Update::2011.05.12

I found out today (2011.05.12) that William Moffitt and Chad Mirkin each bought 15,909 and 10,000 NSPH shares, respectively, at $2.20 per share on 02011.05.10. Moffitt is Nanosphere's CEO/President, while co-founder Mirkin is a the Director of Nanosphere's Scientific Advisory Board.

Update::2011.05.12

I found out today (2011.05.13) that Mark Slezak indirectly purchased 2.7 million NSPH shares at $2.20 per share on 02011.05.10. Slezak is Chairman of Nanosphere's Board of Directors. He is also CEO of Lurie Investments, Inc. {Insider-Alerts.com::Form 4}


Creator: Gerald Thurman [gthurman@gmail.com]
Created: 06 May 2011