November 16, 2017 11:00 am Eastern, (9:00 am Mountain)

I notice that Ceapro released Q3 earnings yesterday morning before the open, The report has positives and negatives. Moderately higher sales but significantly lower profit. But keep in mind that when profits are low, the percentage swings can easily be large. The company reports some progress on its research efforts but there are no real break throughs. Recently it seemed to me that the company was focusing more on its research efforts and vieed its actual sales in the cosmetics business to be the source of funds for research and not the real driver of profit. Now it seems to be focusing more attention on the cosmetics business. It recently announced an acquisition. I view Ceapro’s research efforts as a sort of lottery ticket. It could pay off nicely but it might just turn out to be a waste of money. But meanwhile the base cosmetics business may be enough to justify the current share price. Ceapro is a penny stock and a speculative pick. Not a stock that I would put serious money into but one where I am content to have a small exposure.

CRH Medical is up 10% this morning. Hopefully we have seen the bottom for this one. It’s going to be well into 2018 before we can see its profit levels under the new lower fee structure.

P.S. 11:30 eastern

There is a vote on the income tax changes in the U.S. Senate today which may be why the market is up. Much of the upside for the hoped for corporate tax reductions must already be “priced in” – if so, we could see market declines if the tax bill does not get passed. And it is going to be tough to get it passed.