Covestor model manager Brendan Burke’s Emotional Momentum model is focused on the psychology of investors as well as technology trends. It focuses on the number of outstanding shares a company has, price movement, news and earnings for its momentum-based approach.
The top position in the model is Guided Therapeutics Incorporated (OTC Bulletin Board: GTHP), a company that develops tests that help doctors detect the disease that leads to cervical cancer early and without pain to patients. Results for the test are immediate and don’t require the tissue sample that similar tests require. In 2008, the company had 15.6 million outstanding shares. In 2009 that number jumped to 20 million. According to their third quarter 2010 financial results (released on November 11th, 2010), the company recently received a $1 million grant extension from the National Cancer Institute and completed $3 million in financing. GTHP also has some revenue through a partnership with Konica Minolta. They expect this revenue, along with the financing and grant to help sustain them as they go through the Food and Drug Administration’s regulatory and approval process.
The second top holding in the model is Reeds Inc (NASDAQ: REED). REED specializes in creating beverages that buck the trend of artificial ingredients and flavors. They have their own line of energy drinks, ginger-based beverages, candy and ice cream, and even more traditional soda options. According to their website, their China Cola is the best selling cola in natural foods. The company had a reported 9 million outstanding shares in 2008, and increased that to 9.6 million in 2009. They recently entered into a private label agreement with a national restaurant chain. Their third quarter 2010 financial results showed a 35 percent increase on sales over the same quarter of 2009.