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(NASDAQ:AVXL) STILL HEADING HIGHER IN 2016
Anavex Life Sciences (NASDAQ:AVXL) Still Heading Higher In 2016
JANUARY 3, 2016 BY ALEX CARLSON LEAVE A COMMENT
Anavex Life Sciences (NASDAQ:AVXL) has come under attack in the last month from short sellers and now the SEC. The most recent developments involved AVXL receiving a subpoena from the SEC relating to unusual trading activity in shares of AVXL. On the surface, this might worry nervous longs, but it shouldn’t. We view the sell off as a buying opportunity because the SEC routinely will do this in a stock as volatile as AVXL. As you can see from the following chart, AVXL has been on a roller coaster of a ride. It’s been a great stock for traders with enormous volatility.
The SEC investigation concerns whether any of AVXL’s management or directors violated any securities laws. We don’t see the trading activity having anything to do with AVXL’s management, but rather outside influences. AVXL has become a “cult” stock and has attracted a great deal of interest from both bulls and bears. Time and time again, we’re seeing blog posts on sites such as Seeking Alpha or TheStreet either touting AVXL or slamming the stock. As a result, we see these types of swings in shares of AVXL. For some investors, this can create a lot of stomach pains while others stay the course and either trade around their position or add to their position.
The reason I like AVXL from the long side rather than the short side is that the bull arguments far outweigh the bear’s. While AVXL is still a developmental stage company, it has a lot going on. First off the company is sitting on $15.3 million in cash for R&D efforts and has a low burn rate. Second, AVXL just announced that it’s moving forward with the development program for ANAVEX 2-73. FDA guidance confirms its strategy to move ANAVEX 2-73 (Alzheimer’s) to a larger randomized, double-blinded, placebo-controlled P 2/3 study.
As we head into 2016, there’s a lot of news coming that we think will drive shares higher. The most exciting of which is an update to part B of their P2a trial and the P2/3 coming together with possible partnering. This is exciting stuff and positive news will really send shares flying. Our optimism also stems from how AVXL traded on the last trading day of 2015. Shares fell to as low as $4.60, but rallied throughout the day and ended positive on the day at $5.57. This was a major comeback for the bulls and a very positive sign as we start the New Year.
Regarding the potential of ANAVEX 2-73, while I am no scientist leading experts are saying that Eli Lilly and Biogen may have the science all wrong and that AVXL has it correct. The drugs from Eli Lilly and Biogen are just antibodies against amyloid. In all likelihood, amyloid is not the cause of Alzheimer’s. Instead, Alzheimer’s is caused by oxidation and nitration. This is what ANAVEX 2-73 targets!! It’s a completely new approach to treating Alzheimer’s and that makes it so revolutionary. With anything this revolutionary, you will get conventional scientists coming out and bashing the new science. This is what is happening with AVXL because AVXL is disputing the conventional wisdom.
The funny thing with AVXL is that when the bears are given the facts of the science, they turn to their favorite tactic. They criticize the company because it came public via a shell. Well, when you have a drug that goes against the tide, traditional venture capitalists do not want to take this type of risk. They don’t want to go up against Eli Lilly and Biogen because they are in business with the big drug companies. The big drug companies don’t want AVXL to succeed. They want it to fail!
In looking at AVXL, one can easily see that the pros far outweigh the cons. AVXL could be a huge winner in 2016 and is one that we don’t want to miss out on. If shares get through major resistance at $8, we could easily see new 52 week highs pretty quickly. Be on the lookout for our latest alerts on AVXL and all of our hot stock picks. Let’s make 2016 a big year for all of us!
INSIDER FINANCIAL
SECTOR WATCH
YOU ARE HERE: HOME / BIOTECH & PHARMA / ANAVEX LIFE SCIENCES
(NASDAQ:AVXL) STILL HEADING HIGHER IN 2016
Anavex Life Sciences (NASDAQ:AVXL) Still Heading Higher In 2016
JANUARY 3, 2016 BY ALEX CARLSON LEAVE A COMMENT
Anavex Life Sciences (NASDAQ:AVXL) has come under attack in the last month from short sellers and now the SEC. The most recent developments involved AVXL receiving a subpoena from the SEC relating to unusual trading activity in shares of AVXL. On the surface, this might worry nervous longs, but it shouldn’t. We view the sell off as a buying opportunity because the SEC routinely will do this in a stock as volatile as AVXL. As you can see from the following chart, AVXL has been on a roller coaster of a ride. It’s been a great stock for traders with enormous volatility.
The SEC investigation concerns whether any of AVXL’s management or directors violated any securities laws. We don’t see the trading activity having anything to do with AVXL’s management, but rather outside influences. AVXL has become a “cult” stock and has attracted a great deal of interest from both bulls and bears. Time and time again, we’re seeing blog posts on sites such as Seeking Alpha or TheStreet either touting AVXL or slamming the stock. As a result, we see these types of swings in shares of AVXL. For some investors, this can create a lot of stomach pains while others stay the course and either trade around their position or add to their position.
The reason I like AVXL from the long side rather than the short side is that the bull arguments far outweigh the bear’s. While AVXL is still a developmental stage company, it has a lot going on. First off the company is sitting on $15.3 million in cash for R&D efforts and has a low burn rate. Second, AVXL just announced that it’s moving forward with the development program for ANAVEX 2-73. FDA guidance confirms its strategy to move ANAVEX 2-73 (Alzheimer’s) to a larger randomized, double-blinded, placebo-controlled P 2/3 study.
As we head into 2016, there’s a lot of news coming that we think will drive shares higher. The most exciting of which is an update to part B of their P2a trial and the P2/3 coming together with possible partnering. This is exciting stuff and positive news will really send shares flying. Our optimism also stems from how AVXL traded on the last trading day of 2015. Shares fell to as low as $4.60, but rallied throughout the day and ended positive on the day at $5.57. This was a major comeback for the bulls and a very positive sign as we start the New Year.
Regarding the potential of ANAVEX 2-73, while I am no scientist leading experts are saying that Eli Lilly and Biogen may have the science all wrong and that AVXL has it correct. The drugs from Eli Lilly and Biogen are just antibodies against amyloid. In all likelihood, amyloid is not the cause of Alzheimer’s. Instead, Alzheimer’s is caused by oxidation and nitration. This is what ANAVEX 2-73 targets!! It’s a completely new approach to treating Alzheimer’s and that makes it so revolutionary. With anything this revolutionary, you will get conventional scientists coming out and bashing the new science. This is what is happening with AVXL because AVXL is disputing the conventional wisdom.
The funny thing with AVXL is that when the bears are given the facts of the science, they turn to their favorite tactic. They criticize the company because it came public via a shell. Well, when you have a drug that goes against the tide, traditional venture capitalists do not want to take this type of risk. They don’t want to go up against Eli Lilly and Biogen because they are in business with the big drug companies. The big drug companies don’t want AVXL to succeed. They want it to fail!
In looking at AVXL, one can easily see that the pros far outweigh the cons. AVXL could be a huge winner in 2016 and is one that we don’t want to miss out on. If shares get through major resistance at $8, we could easily see new 52 week highs pretty quickly. Be on the lookout for our latest alerts on AVXL and all of our hot stock picks. Let’s make 2016 a big year for all of us!
