Give ‘em points for creativity - micro cap company Immunosyn Corporation (IMYN) has submitted photos to the SEC as part an official filing. Pictures of what? They called them ‘proof of concept’ for a biopharmaceutical treatment of diabetic ulcers. The photos were of - you guessed it - the open wounds of diabetic patients. Weird to be sure, but apparently effective…the stock is up 22% today.

The photos are just the beginning of what the company intends to become a wider scale version of the same efficacy test. After that test is complete, a full-scale clinical trial is planned at a major wound clinic in Europe.

There was no mention of testing or commercialization in the United States. However, that’s not a surprise - the United States’ FDA tends to be less progressive than overseas regulators, even for minor treatment options such as this one.

Though Immunosyn is likely to expand into the U.S. if and when the opportunity arises, it does not appear as if that’s the focus right now. Of course, it doesn’t need to be - the majority of the world lives outside the United States, and there’s plenty of marketability for a product like this.

From the same official document filed with the photographs, Immunosyn said “According to the International Diabetes Federation (IDF), globally, an approximated 246 million people have Diabetes Mellitus, of which one in six will develop a diabetic foot ulcer. Also according to IDF, extensive epidemiological surveys indicate that between 40% and 70% of all lower extremity amputations are related to diabetes and that every 30 seconds a leg is lost to diabetes somewhere in the world.”

Investors seemed to like the pictures, and the opportunity.

Over the last few weeks we’ve become intimately aware of small cap company Clearly Canadian’s (CCBEF) revival. Perhaps birds of a feather really do flock together…micro cap stock Purple Beverage Company (PPBV) has been on fire lately, more than doubling its value since early February. As hot as this new stock is, it just seems to be getting hotter. One could make the argument that Clearly Canadian and Purple Beverage were just beneficiaries of the bigger uptrend within the soft drink sector, but that wouldn’t be the case - soft drinks have just been mediocre over the last six weeks. No, these two names are doing most of the work on their own.

Just for perspective, since February 1st…

• Clearly Canadian shares are up 56.9%
• Purple Beverage shares are up 103.4%
• The Dow Jones Soft Drink Index is up 0.5%

There’s not much ‘groupthink’ evident in that disparity.

The Clearly Canadian strength we’ve already discussed…more good news, and more reporting of it. The reason for Purple Beverage stock’s strength is a little hazier.

The company was born out of a union completed in December between Venture Beverage company and Red Carper Entertainment. The ticker ‘PPBV’ went live on the bulletin board in January, and has been smokin’ ever since.

Is it worth the current price of $2.98? That’s the question. To answer it, we have to go back to the quarterly reports files before the new name and ticker became effective. In the last quarter of last year, they did $258.8K in sales. Since it was basically the first operational quarter, there is no comparative…or even a helpful forecast.

The market cap? $About 163 million. That’s not even in the right universe relative to the dollar amount of sales the company did last quarter.

To maintain anything close to its current stock price, Purple Beverage is going to have to do something uncanny to the top line (and that’s an understatement) in the very near future. Maybe they have it up their sleeve, though even all the recent media exposure they’ve gotten - which has been great - won’t put dollars on the table.

Caution is merited for long-term investors, though short-term traders may be able to ride some of the hype-driven rally.