Investing to Wealth

Health Sciences Group Inc. (OTCPK: HESG)

Health Sciences Group Inc. (HESG) identifies, develops and commercializes products and functional food ingredients derived from natural sources to provide consumers and healthcare professionals with preventive healthcare alternatives. The Company has two operating subsidiaries: BioSelect Innovations Inc. and Swiss Research,Inc. BioSelect Innovations has developed a number of product formulations. These patents address the integration of selective traditional over-the-counter generic drugs with complementary alternative medications, such as vitamins, herbs and other natural nutraceutical supplements. Swiss Research is a diet and nutrition products company, which markets and sells Shugr, a zero-calorie and diabetic safe sugar substitute with the look, taste and baking qualities of cane sugar.

Source: Reuters.com, SEC Filings.

Financial Summary

Source: Reuters.com, SEC Filings.

Analyst Consensus

No consensus analysis data available.

Source: http://www.reuters.com/finance/stocks/estimates?symbol=HESG.PK

Investment Highlights

HESG announced in late October the appointment of Dr. Fred Aserati to spearhead the Company’s interest in exploring either applying for licensing of distribution of medical marijuana in California or seeking acquisition or partnership of existing medical businesses. Dr. Aserati has an extensive background in studying the government’s policy on the growing and distribution of medical Cannabis/Marijuana.

In a recent report, the Obama administration issued a new medical marijuana policy that is one more step toward legalization, as the federal government won’t prosecute medical marijuana if compliant with state law. HESG sees it as definitely one giant step closer to the legalization of Medical Cannabis/Marijuana as a Government supported legal medical treatment.

HESG recently announced that in addition to finalizing a consulting agreement with Medical Marijuana Inc. in its pursuit to enter the Medical Marijuana business it has also contacted several law firms in California and Colorado for purposes of licensing requirements for dispensaries.

Thomas Gaffney, HESG CEO, states, “That in addition to entering into a consulting agreement with Medical Marijuana Inc. we have contacted several law firms in Colorado and California pertaining to medical marijuana laws — basically the requirements of licensing. We have all intentions of entering the world of medical marijuana in the near future. We have also been in contact with some operating dispensaries about possible acquisitions.”

Source: Yahoo.com

Technical Analysis

HESG is trading above its 50-day moving average. This is considered to be the sign of a bullish trend. There is added weight to this indication because the moving average is rising and suggests that there has been buying interest in this stock.

HESG’s recent volatility has been greater than normal. This is evidenced by the increased distance between the upper and lower Bollinger Bands. These bands measure volatility using standard deviation and a large width is due to high volatility. Additionally, HESG is trading above its upper Bollinger Band. Relative to recent price action, the stock is currently overextended and due for either a pause or retracement.

The MACD for HESG currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0 which implies that the underlying moving averages are trending higher.

Comparative Analysis

Source: Thomson Financial

Insider Trading Activity

Source: Yahoo Finance

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