Shares of Cel Sci (CVM) traded down during pre-market trading on Tuesday after The Street.com published yet another article bashing the company and the potential of its pipeline. Undoubtedly some shareholders are going to be shaken out of the stock by the antics of Feuerstein, but I say take advantage of the dip.
This is one of those situations where a shareholder needs to rely on their own due diligence and decide for themselves whether or not their investment is a worthy one. I've been a shareholder of CVM for some time and I made it a point to buy as many shares as I could afford while the stock was trading for under thirty cents. I'm also willing to add to my position now because, as I've stated before, I like the potential of Multikine making it big time.
In my opinion, Cel Sci's swine flu treatment using the LEAPS technology is just icing on the cake. However, the fact that treatment is currently being investigated for effectiveness in a human clinical trial shows that the "icing on the cake" could become a reality if it performs as expected.
I'll also reiterate the fact that Cel Sci's Baltimore manufacturing facility is due to open in short time and with that will most likely come an announcement that will inform investors of a start date for the Multikine Phase III trial. Multikine, as a head and neck cancer immunotherapy treatment that performed well in Phase II trials, will be huge if it makes it to market - in my opinion.
So ignore all the hoopla being thrown around by The Street.com and just concentrate on the facts; and then invest based on your own assertations of those facts. In my opinion, CVM is still a stock to accumulate on any dips.
I'll just add this last parting note: Keep in mind that Jim Cramer, Adam Feuerstein and The Street.com were on the wrong side of Dendreon (DNDN) both times the stock rose from about four dollars to the mid twenties. I remember Cramer coming out on his 'Mad Money' CNBC show and insinuating that the doctors got it wrong. In his mind, 'The Street' didn't believe in Provenge, so neither should the doctors. He also spoke about the hedge funds that he knew went bust for betting against Provenge - almost as if he wanted us to feel sympathy for them. They bet against DNDN, lost, and now Feuerstein re-writes history by claiming that DNDN was a victory of his. Now he's realized how late to the game he is with Cel Sci (the stock is already a five-bagger this year, even with the recent pullback) and he needs to drop the stock so that his boys can buy in.
The point is, these guys on 'The Street' have little interest in whether a new and potentially life saving product makes it to market - they just care about money. Not your money, not my money - only the money that lines their pockets. The small investor needs to be aware of that and keep a clear head when there's a thousand things coming at you from those who would be glad to swipe the last dollar from your hand.
I think Cel Sci is on to something. I originally invested in this stock for the potential of Multikine alone, but now I see that there is real potential in the LEAPS technology. I also thought that LEAPS as a swine flu treatment was just a bunch of fluff being put out by the company in an attempt to get the stock price to over a dollar, but when the PR was issued announcing a clinical trial, I saw that the potential was real.
The "he said she said" games being played by The Street look pretty immature coming from a supposed well-established company, but the games will be played and the small investor needs to take advantage.
If you're confident in your DD, then buy the dips.
Disclosure: Long CVM.
Investors Should Ignore the Hoopla Around Cel Sci
Oct 7 2009, 04:46
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about: CVM

