Wednesday, July 2, 2014

Seeking Alpha: ChromaDex Looks Interesting, But Highly Speculative

The land of microcap stocks is not my preferred hunting ground; there are way too many hype-driven stories and way too few real diamonds in the rough to make the panning process worthwhile. Even so, ChromaDex (OTCQB:CDXC) looks like a potential exception to the rule worthy of a closer look. I think the company's basic business strategy of pursuing high-potential ingredients for supplements and other nutritional products is a sound one. For better or worse, the pharmaceutical implications of some of these products could capture investor attention and really ignite the stock for stretches at a time.

All of that said, I won't go any further than to say this looks interesting and worthy of further investigation for investors who can take on the risks. ChromaDex will almost certainly need to raise more funds and I don't see how the company can produce long-term value without eventually taking on a more significant internal R&D strategy. Moreover, given the nature of the large float and active volume, this is a stock that can I see easily getting moved around by news and rumor.

Click the link to continue:
ChromaDex Looks Interesting, But Highly Speculative

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