3SOF

Profile: Health Enhancement Products, Inc., through its subsidiary, engages in the production and marketing of health products in the United States. Its principal product is ProAlgaZyme, a proteolytic enzymatic protein derived from a natural plant culture, which aids in the defense of the body against introduced or naturally-occurring harmful substances. The company was incorporated in 1983 as L. Peck Enterprises, Inc. and changed its name to Western Glory Hole, Inc. in 1999. Further, it changed its name to Health Enhancement Products, Inc. in 2003. The company is headquartered in Scottsdale, Arizona.
Website: http://www.healthenhancementproducts.com
Market Cap: 106M

Trading Idea:
Disclaimer: This is not the regular type of 3SOF trade, and this may enclose some additional risk due to low volume and the fact of this being an OTCBB stock.

We are looking to HEPI mainly because of 3 things:
- We have an interesting technical outlook
- We have a speculative rumor
- We have a date

HEPI is a low volume stock, its trend has been bullish in the last 6 months, during the last few sessions HEPI started to trade with a slight volume increase and yesterday we had what seems to be a start, volume has peaked and HEPI breakout into new relative highs.
Digging a little bit, we can see this:

- Health Enhancement Products Receives Approval to Commence HIV and CRP Clinical Trial in Cameroon (http://www.aegis.com/news/bw/2006/BW060501.html) (May 1, 2006)

and this:

- Health Enhancement Products, Inc. to Update Public Regarding Product Research and Other Current Events (http://biz.yahoo.com/iw/060919/0164303.html) (September, 19 2006)

QuoteHEPI announced today that it will be holding an informal shareholders' meeting on October 2, 2006 at 9:00 AM. The purpose of the meeting is to update the public shareholders and other interested persons concerning our recent research projects and other current events affecting the company.

It doesn't make any sense to schedule this conference if they don't have any «interesting» developments to pronounce... taking into consideration HEPI's investigation theme, we may have some speculation opportunity here...
October 2, give us some time for this trade, and the stock only started to move yesterday.

Trading Plan:
Buy HEPI today.
Note: Due to the low volume on this stock, we may not buy our regular full position here, we'll try to buy below $3.00, but we may buy higher than that. Our goal here is to sell this stock above $4.00 before October 2 although we are not setting any limit sell order yet.

Regards,


.

That's cool Rams, I got me some HEPI already for the exact same reasons you mention in your overview  ;D

Now normally I am not a fan of low volume stocks, but I made an exception with HEPI the combination of the story, the defined date (Oct 2nd shareholder update), and technically the close support on the chart made it a compelling set up for me. In fact I was in the proces of starting a HEPI thread, but hey no need for that now ;D

This is a pure speculation play, but at the same time quite safe (well as safe as any OTC deal can be) My plan was / is to ride the speculation prior to Oct 2nd and sell before that date at anywhere between $4 and $8. Why sell before? Well although it sounds like they will release good (maybe great) news, you can never be 100% certain. That said if I am up nicely prior then may let some ride through the date and see.

Hey I feel even more confident about my HEPI position now 3SoF see's the same opportunity I do.

Good Trading

Was it purchased today?

I have a GTC order at $2.80

Quote from: 422fwhp on September 22, 2006, 11:22:20 PM
Was it purchased today?

I have a GTC order at $2.80

Looks like 3SOF got it at 3.06, not sure if it was a full position.  I got it at 3.10, and it was one of my only green stocks in a pretty ugly market for my other stocks...

Update:
HEPI keep moving to the upside, this is a low volume stock, although current volume can be considered pretty strong and above average (it looks like some traders are getting in ahead of any expected good news). We believe that HEPI have the potential to trade above $4 before October 2 (press conference day).
We can't design a specific trading plan here, $2.70 should provide support in case of a throwback to the breakout level, our goal is to close this position above $4 while riding this current speculative move to the upside, its difficult to know what could be an acceptable top for an OTC stock like this... but something is definitively going on here...

Trading Plan:
Hold HEPI.OB
(No stop or limit order in place, but any price above $4 should be considered a good selling spot)

Regards,

a good day to enter this stock below 3.00...

Quote from: ket1390 on September 26, 2006, 04:14:35 PM
a good day to enter this stock below 3.00...

Lets hope so Ket, I take it you now have your position ;)

Nice support found at the 9ema, most of the days volume coming when the bottom was found at $2.85 and then on the run back up to $3.25. Volume remains high (on a relative basis) so this play is still shaping up.

Good Trading

Quote from: AussieTrader on September 26, 2006, 07:09:19 PM

Quote from: ket1390 on September 26, 2006, 04:14:35 PM
a good day to enter this stock below 3.00...

Lets hope so Ket, I take it you now have your position ;)

hi aussie yes got some at 2.95 ....nice we closed at 3.25....

The ducks are lining up......

Sep 28, 2006
SCOTTSDALE, AZ
MARKET WIRE 
Health Enhancement Products, Inc. (OTCBB: HEPI) today expanded on its prior
announcement that it will be holding an informal shareholders' meeting on
October 2, 2006 at 9:00 AM at the Westin Kierland Hotel in Scottsdale, AZ. The
purpose of the meeting is to update the public shareholders and other interested
persons concerning recent research projects and other current events affecting
the company, including the results of the Company's clinical trials concerning
the possible effects of ProAlgaZyme on HIV and Metabolic Syndrome. Members of
the public are welcome.

The meeting will be held at 9:00 AM (local time) in the GRAND BALLROOM at:

THE WESTIN KIERLAND RESORT AND SPA 6902 East Greenway Parkway Scottsdale,
Arizona  85254 Phone: 480-624-1000

In addition, the meeting will be broadcast live over the World Wide Web. For
the Web Cast, please log onto www.heponline.com and click on the following link:
"Health Enhancement Products, Inc. Live Web Cast."

For those coming from out of town and needing hotel reservations, please call
the Westin and mention Health Enhancement Products. We have blocked off rooms
and there will be a discount for our shareholders.

About Health Enhancement Products, Inc.

Health Enhancement Products, Inc. is a nutraceutical company engaged in the
development of a supplementary health-enhancing product using only pure,
all-natural ingredients. The company's sole product is ProAlgaZyme, a
phytopercolate that is produced from an algae grown in 100% distilled water.

The algae from which ProAlgaZyme is derived produces a phytopercolate which is
drawn off, filtered, tested and bottled for consumption. One recent clinical
study indicated that ProAlgaZyme has potential weight-loss properties, as well
as the potential to improve serum glucose management, when combined with a diet
low in refined carbohydrates and a light exercise regimen.

;) HEPI @ $4.10 up +25.7% with 200k volume ;)

nice trade you got goin here ;)

applauds

Quote from: AussieTrader on September 22, 2006, 09:08:31 AM
This is a pure speculation play, but at the same time quite safe (well as safe as any OTC deal can be) My plan was / is to ride the speculation prior to Oct 2nd and sell before that date at anywhere between $4 and $8. Why sell before? Well although it sounds like they will release good (maybe great) news, you can never be 100% certain. That said if I am up nicely prior then may let some ride through the date and see.

Oh no the profit demon inside me is telling me to hold everything through this Oct 2nd meeting >:D However my business risk aware angel is counselling me on the safer approach LOL

This trade did exactly as I had expected (hoped). Today it met my initial entry swing trade target which was $3.88. I think Friday will see $4 again.

Thanks Aussie ;) (applaud)

Update:
Great session for HEPI, volume jumped to 270k which is very strong on this stock, and HEPI traded above $4.00 for a while. This is coming together with our expectations for this trade, the PR date is getting closer and it seems that the buy pressure is getting stronger too ;)

Remember, we bought HEPI ahead of any news, so we are playing «sell the news» here... Its difficult to predict any potential fluctuations, first because we don't know what kind of news are coming out, and second because this is a traditional low volume OTC stock.
The logical scenario for HEPI will be another big move to the upside today, and a big gap up on Monday because of the potential good news (I assume it is good news, otherwise the company would not advertise like this, and probably part of this volume is coming from insiders or people close to the company).

Exceptionally we'll not design an exact trading plan here, any price above $4.00 could be considered an excellent exit point, but the potential is unknown... 4.50 ? 5.00 ? 6.00 ? 8.00 ? All this prices could be possible for the next 2 trading days depending on many factors...
So we'll not set any specific limit exit price here, and we leave that to member's discretion.

Trading Plan:
*** Hold (suggested exit strategy: any price between $4.00 and $6.00 during the next 2 trading days)

Best regards,

Good pick! ;)

HEPI traded from 0.70 to 4.20 in six months that's about 475%, the chart looks like wants to consolidate in any trading day next week...

Above 4.20 in play on Ascending Triangle breakout, But this one could run up to $6 if the news is really, really good. IMHO... applause........... ;D

Quote from: Terliso on October 01, 2006, 03:19:14 AM
Good pick! ;)

HEPI traded from 0.70 to 4.20 in six months that's about 475%, the chart looks like wants to consolidate in any trading day next week...

Above 4.20 in play on Ascending Triangle breakout, But this one could run up to $6 if the news is really, really good. IMHO... applause........... ;D

Thanks for your input Terliso ;)
I agree... depending on the news, this baby has the potential for that kind of target ;)

Update:
HEPI was up again, keeping itself near the recent highs and trading high (relative) volume. The press conference will be held today in a few hours. We are expecting good news, probably some really relevant news for the company, but as explained before, we'll be selling «the news», whatever they are.
We can't design a specific exit plan for today, so we'll leave this exit strategy to members own judgment and we'll sell HEPI somewhere during today's session.

Trading Plan:
*** Sell HEPI today

Best regards,

The news is good:

Health Enhancement Products Releases Preliminary HIV and Metabolic Syndrome Clinical Study Results
Monday October 2, 8:30 am ET

Company Reports Encouraging Preliminary Results but Cautions That Additional Studies Will Need to Be Completed in the Future

SCOTTSDALE, AZ--(MARKET WIRE)--Oct 2, 2006 -- HEALTH ENHANCEMENT PRODUCTS, INC. (OTC BB:HEPI.OB - News) today announced the preliminary results from two recent human clinical studies. One study examined the possible effects of the company's all-natural algae dietary supplement, ProAlgaZyme, on HIV / HBV. In particular, among other things, the study explored ProAlgaZyme's potential ability to reduce viral loads and increase CD4 T lymphocyte counts in HIV infected persons. The second study examined, among other things, the potential effects of ProAlgaZyme on circulating levels of C-reactive Protein (CRP), a marker of inflammatory activity. In particular, the study investigated the potential of ProAlgaZyme to control inflammation and promote cardiovascular benefits in overweight and obese people with Metabolic Syndrome, a condition characterized by at least 3 of the following parameters: elevated levels of CRP, triglycerides, fasting blood glucose and blood pressure, high waist circumference, and depletion in HDL cholesterol. The syndrome affects an estimated 1 in 4 US citizens (American Heart Assoc 2006). The studies were conducted in the Dept. of Biochemistry, University of Yaoundé I, Cameroon.

The 10-week HIV study involved seventy (70) HIV infected individuals, broken into groups which consumed high (16 or 20 oz.) or low (4 or 8 oz.) doses of ProAlgaZyme. Participants were also grouped based on initial immune status, infection with HIV or co-infection with HIV and Hepatitis B (HBV), and the presence or absence of concurrent treatment with HAART (Highly Active Antiretroviral Therapy).

The following table summarizes the preliminary results relating to the listed parameters (the data reported represents the approximate average changes for each participant group):

High dose (n=25)      Low dose (n=45)

    CD4+ T-cells (1)        + 39%                 + 34%
    HIV Viral Load (2)      - 42%                 -  9%
    C-Reactive Protein (3)  - 43%                 - 42%
    Total Cholesterol       - 46%                 - 31%

(1)  The higher the number of CD4+ T lymphocyte cells, the greater the
immune system's ability to fight disease.
(2)  HIV viral load measures the amount of HIV virus in the blood.
(3)  C-reactive protein (CRP) is a marker of systemic inflammation; a
reduction of the level of CRP indicates a reduction in the amount of
inflammatory activity in the body.

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ProAlgaZyme also reduced the activity of ALAT and ASAT (liver enzymes) in participants who were taking HAART. No significant changes occurred in BMI, body fat, waist/hip ratio, systolic or diastolic blood pressure or LDL and HDL cholesterols. The following parameters have not yet been analyzed and will be reported at a later date: MDA and thiol protein (markers of oxidative stress), Complete Blood Count and additional liver enzymes (ALP, GGT and LDH). Based on preliminary findings, participants will have the opportunity to be voluntarily monitored and continue taking ProAlgaZyme.

Preliminary results of the CRP-related Metabolic Syndrome study were also generally positive. Thirty (30) participants consumed 4 oz. of ProAlgaZyme daily for eight (8) weeks (3 participants withdrew). While thirty (30) participants also began the placebo arm of the study (consuming 4 oz. placebo daily), some of these participants voluntarily withdrew because no improvements were noticed over 4 weeks. Participants in both arms of the study were overweight or obese and had elevated levels of fasting blood glucose, cholesterol and an inflammatory marker (CRP). Statistically significant improvements were observed in the PAZ group in BMI (Body Mass Index), total and HDL cholesterol, C-reactive protein and diastolic blood pressure.

The approximate average changes of participant groups for the listed parameters are as follows:

ProAlgaZyme (n=30)    Placebo (n=12)

    Body Mass Index (BMI)   -  6%                 +  2%
    Total Cholesterol       - 16%                 +  8%
    HDL Cholesterol         + 55%                 +  8%
    C-Reactive Protein      - 30%                 - 13%
    Diastolic BP            - 12%                 +  4%

No significant changes occurred in the following: triglyceride, LDL cholesterol, and fasting blood glucose levels, systolic blood pressure, pulse rate or waist and hip circumferences. The following parameters have not yet been analyzed and will be reported at a later date: body fat, insulin, red blood cell sedimentation rate, and IL-6 and TNF (inflammatory markers).

Howard R. Baer, Chairman, stated: "These are very exciting times for our company. The results from the studies in Cameroon are generally positive and warrant further investigation. However, we still have a long road ahead and the company will need to do additional, more extensive clinical studies on the product. Based on these results, combined with other tests we have completed, we believe that we are now in a position to further commercialize ProAlgaZyme as a nutraceutical. We are in the process of implementing a sales and marketing initiative, with a view toward expanding the distribution of the product in the nutraceutical sector. The initial rollout will be limited to the greater Phoenix area and, if successful, the company will expand it from there. At the present time, our very limited sales are primarily done over the internet."

Dr. Julius Oben, who co-supervised the studies, stated that he was "encouraged by the results." Dr. Oben further stated that, "These preliminary results show that ProAlgaZyme has the potential to improve the health of HIV infected persons."

As previously announced, an informal meeting will take place today at 9am (local time) at the Westin Kierland Grand Ballroom in Scottsdale, AZ. The conference will also be available via live Web Cast on the company's website www.heponline.com.

Hi Aussie,

Yes, does seem pretty impressive.  Here is what seemed to be the meat of it to me:

"High dose (n=25)      Low dose (n=45)

    CD4+ T-cells (1)        + 39%                 + 34%
    HIV Viral Load (2)      - 42%                 -  9%
    C-Reactive Protein (3)  - 43%                 - 42%
    Total Cholesterol       - 46%                 - 31%

(1)  The higher the number of CD4+ T lymphocyte cells, the greater the
immune system's ability to fight disease.
(2)  HIV viral load measures the amount of HIV virus in the blood.
(3)  C-reactive protein (CRP) is a marker of systemic inflammation; a
reduction of the level of CRP indicates a reduction in the amount of
inflammatory activity in the body."

It is interesting to realize too that some volunteers had decided to leave the study because at 4 weeks they didnt see results, but the above results were after 8 weeks.  So that would indicate to me that further reductions in viral load could happen with longer use of the product.  Pretty cool for an algae product...

That's a hell of a fill you got on HEPI. I doubt many of us sold in the first 30 seconds of the day. I do believe that it could have helped us all had you redefined you selling commentary prior to the open. Obviously your during the day thought process changed to sell at the open when you saw the news. Two members did comment on the news but each one also commented on the CC to come later in the day. I didn't know which news event would trigger your sell the news commentary. Good Trade and great selling decision. Just asking you if you wanted to relate to us that you would sell the open if the news was out. Thanks for your reply in advance.