Over the last few months I have been hiding under the rock, waiting for the global economic fears to boil over. 2011 was a hard year to be a trader and 2012 hasn't brought in a lot more optimism yet. While the folks I talk to are optimistic about the short term, post tax-loss, period for junior stocks, the overall economic setting is not much changed from 2011.

A good way to describe the current economic environment is to borrow PIMCO's Mohamed El-Erian term of a "stable disequilibrium." In this video the ever popular Kyle Bass breaks down the catalysts that can make this disequilibrium explode. Wheather you are a contrarian type or not, this market remains far too unpredictable to invest in.

For me the game has changed. A swath of good quality stocks has become cheap, while the underfunded junior stocks are perilously close to extinction. Going forward my strategy is to focus on companies that have very near term catalysts and are well funded. Playing the junior sector bullish swings is no longer safe. I'll be writing about my selective picks in shorter posts going forward. For now there is one company that I think is an excellent buy here: Bioasis (BTI.V).

Bioasis (BTI.V) is my favorite stock at the moment because it will have a catalyst rich 2012 that may send this stock soaring for a 5 to 10 bagger return potential. I've been raving about Bioasis technology potential for a while now. Over the summer, as Bioasis announced a series of successful milestones with their Transcend, blood brain barrier crossing, technology, many big pharmas have started to take notice of their advances with what is deemed to be a Holy Grail of Central Nervous System disease market.

Recently the company has signed their first 'option-to-license' deal with Shire, to evaluate Bioasis' Transcend technology. The evaluation period is expected to be complete in the Q1 of 2012 and that is when things will get interesting for Bioasis. Depending on the success of the trial, Bioasis may command a multi-million dollar up-front payment for a license, plus a royalty payment for any drug Shire is interested in conjugating with Transcend.

The potential structure and the financial terms of the deal will depend on the outocme of the study. To give us some sense of what we could expect though, a good comparison might be the recent licensing deal between Seattle Genetics and Abbott, under which Abbott paid $8M up front for rights to utilize Seattle Genetics' antibody-drug conjugate technology rights for a single oncology target.

To speculate further, it would not be a stretch to imagine that Shire would be interested in acquiring Bioasis outright, to prevent its competitors from acquiring this technology.

Up and coming companies sometimes enter these stages where they are telegraphing future success. For those of us lucky enough to piece the puzzle together and understand when we are in this stage is a true gift. It doesn't happen often, but when it does boy is it ever exciting. I think Bioasis is now in the telegraphing stage where all signs are pointing to an exciting 2012 and majority of investors are not understanding this. For any investors looking for that once a season breakthrough investment, take a look at Bioasis. Do your due diligence and see if you agree with me that this is a unique investment opportunity.