https://www.insiderfinancial.com/whats-happening-w
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Posted On: 04/11/2017 9:35:50 AM
https://www.insiderfinancial.com/whats-happen...cp/121063/
We’ve been getting a lot of emails from our subscribers about OWC Pharmaceutical Research Corp (OTCMKTS: OWCP). We will be the first ones to say that the stock has sold off much more than we expected it would. What we’ve witnessed is the company almost giving up all of its 2017 gains.
While many subscribers got in last year when we first alerted them to the company last October, new subscribers are sitting with losses have gotten in this year. As we take a closer look, nothing fundamentally has changed to alter our bull thesis. Matter of fact, the pullback looks to be a gift to those wanting a long-term exposure to OWCP.
In looking at the chart, you see the big spike to $3 and then the retracement down to the key $1 support level. When the $1 support level broke, we feel that some nervous longs bailed and the shorts piled on due to the delay in the annual report being released. Delays are all too common with small caps like OWCP, especially when the company is based in Israel and the reporting is done in America. Getting all the paperwork to the right parties over multiple time zones can and does lead to many delays.
This type of selloff is not unusual at this stage of the biotech spectrum. As we’ve said before, we believe that OWCP could be the next GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH). GWPH saw the same thing happen to its stock price from the middle of 2015 to March 2016. However, it took only one day for shares to jump over 100% after the company delivered positive news on its cannabis-derived drug. From then on, it’s been nothing but north for GWPH’s share price.
We believe OWCP could be setting the market up with its psoriasis cream just like GWPH did its drug Epidiolex. We also believe that many investors have failed to realize how big an issue psoriasis really is. We’ve included some pictures here that show how serious it is (pardon the graphic images).
Psoriasis has huge market potential for OWCP as there is no known cure. It is an autoimmune disease that causes red, scaly patches to appear on the skin, and can be associated with other serious health conditions, including diabetes, heart disease and depression. Skin cells in patients with psoriasis grow at an abnormally fast rate, causing a buildup of lesions that tend to burn and itch. While the real cause of psoriasis is not known, genetics are believed to play a major role in its development. According to the National Psoriasis Foundation, psoriasis affects 7.5 million people in the United States.
The latest news from OWCP regarding its psoriasis cream may have let the markets down as many participants have a short term outlook. The company claimed in the press release that after the application of its cannabinoid-based cream formulation, “there was up to 70% improvement in a variety of inflammation markers directly associated to Psoriasis“. In addition, the company stated that after obtaining the results, OWC Pharmaceutical’s scientific team decided to expand the size and scope of its clinical study. The news was indeed positive, but these types of studies and efficacy tests take time.
Currently trading with a market cap of $104 million, we believe that biopharma plays like OWCP have the greatest potential for cannabis investors. There are only a handful of publicly-traded companies focused on cannabinoid-based, pharmaceutical development for investors to bet on. In looking for the right companies, probably the best place in the world for cannabis research is Israel, of which OWCP is the best bet among these companies. OWCP owns its IP, has a strong management team and advisory board, and has huge potential with not only its psoriasis cream, but also its sublingual tablet and its multiple myeloma candidate. We expect some major developments to hit the tape over the coming weeks/months that will reward OWCP and its shareholders.
We’ve been getting a lot of emails from our subscribers about OWC Pharmaceutical Research Corp (OTCMKTS: OWCP). We will be the first ones to say that the stock has sold off much more than we expected it would. What we’ve witnessed is the company almost giving up all of its 2017 gains.
While many subscribers got in last year when we first alerted them to the company last October, new subscribers are sitting with losses have gotten in this year. As we take a closer look, nothing fundamentally has changed to alter our bull thesis. Matter of fact, the pullback looks to be a gift to those wanting a long-term exposure to OWCP.
In looking at the chart, you see the big spike to $3 and then the retracement down to the key $1 support level. When the $1 support level broke, we feel that some nervous longs bailed and the shorts piled on due to the delay in the annual report being released. Delays are all too common with small caps like OWCP, especially when the company is based in Israel and the reporting is done in America. Getting all the paperwork to the right parties over multiple time zones can and does lead to many delays.
This type of selloff is not unusual at this stage of the biotech spectrum. As we’ve said before, we believe that OWCP could be the next GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH). GWPH saw the same thing happen to its stock price from the middle of 2015 to March 2016. However, it took only one day for shares to jump over 100% after the company delivered positive news on its cannabis-derived drug. From then on, it’s been nothing but north for GWPH’s share price.
We believe OWCP could be setting the market up with its psoriasis cream just like GWPH did its drug Epidiolex. We also believe that many investors have failed to realize how big an issue psoriasis really is. We’ve included some pictures here that show how serious it is (pardon the graphic images).
Psoriasis has huge market potential for OWCP as there is no known cure. It is an autoimmune disease that causes red, scaly patches to appear on the skin, and can be associated with other serious health conditions, including diabetes, heart disease and depression. Skin cells in patients with psoriasis grow at an abnormally fast rate, causing a buildup of lesions that tend to burn and itch. While the real cause of psoriasis is not known, genetics are believed to play a major role in its development. According to the National Psoriasis Foundation, psoriasis affects 7.5 million people in the United States.
The latest news from OWCP regarding its psoriasis cream may have let the markets down as many participants have a short term outlook. The company claimed in the press release that after the application of its cannabinoid-based cream formulation, “there was up to 70% improvement in a variety of inflammation markers directly associated to Psoriasis“. In addition, the company stated that after obtaining the results, OWC Pharmaceutical’s scientific team decided to expand the size and scope of its clinical study. The news was indeed positive, but these types of studies and efficacy tests take time.
Currently trading with a market cap of $104 million, we believe that biopharma plays like OWCP have the greatest potential for cannabis investors. There are only a handful of publicly-traded companies focused on cannabinoid-based, pharmaceutical development for investors to bet on. In looking for the right companies, probably the best place in the world for cannabis research is Israel, of which OWCP is the best bet among these companies. OWCP owns its IP, has a strong management team and advisory board, and has huge potential with not only its psoriasis cream, but also its sublingual tablet and its multiple myeloma candidate. We expect some major developments to hit the tape over the coming weeks/months that will reward OWCP and its shareholders.
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