Watch CodeSmart Reap Revenue Windfall

Tickers in this article: BZNE.OB ITEN ITEN.OB OPK

NEW YORK (TheStreet) -- Last week I noted that shares of Biozone Pharmaceutical , were likely being held down by a burst of indiscriminate selling resulting from a former employee who was looking to get out. I predicted that once the selling ended, the shares would be due for a substantial pop.

The stock did get a slight lift, but remained subdued as selling continued. As predicted, within days, the seller ran out of shares and the stock immediately took off.

Shares of Biozone rose as much as 80% in the past five days. Some of this benefit can also be attributed to the 30% jump in shares of partner Opko Health over the same period.

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When I wrote about Biozone, the stock was sitting at just 45 cents on the OTC bulletin board. Even at current levels, penny-stock Biozone still has plenty of additional upside. I still own Biozone, which closed Thursday at 86 cents, up 16 cents, or 22.86%, in the session. To reiterate, penny stocks are known to give investors wild rides, as any news can sway them. While the gains can be impressive, there are also inherent risks.

Shares of CodeSmart Group (ITEN.OB), may also be due for a quick near-term pop, but for very different reasons.

CodeSmart specializes in the International Classification of Diseases, now providing training for medical coders in version ICD-10 -- a tenth revision. The U.S. has been using version nine since the 1970s. Doctors who fail to get up to speed on the new coding system will find themselves not getting reimbursed as planned, creating a very strong incentive to comply in a timely manner.

The ICD system is administered by the World Health Organization. The U.S. is the only developed country who has not yet adopted ICD-10. However, the U.S. department of Health and Human Services has now mandated that U.S. health care providers adopt this system by no later than October 2014. After that date, Medicare, Medicaid and private insurers will no longer process claims using ICD-9. The Affordable Care Act (or "Obamacare") will not have any impact on the adoption of ICD-10.

CodeSmart went public in May of 2013 specifically to provide this training, and is well-positioned to take advantage of this multi-billion dollar health care opportunity.

Conservative projections would call for around $10 million to $20 million of net income on more than $50 million in revenue in 2014. Assuming a fairly conservative PE ratio, this would see CodeSmart trading at a market cap of nearly $300 million within the next 6 to 12 months. This is a tremendous jump from current levels.