Remaining Grounded Through the Unethical Attacks on Cel Sci

[Update below]

Shares of Cel Sci Corp (CVM) were on the rebound during early trading on Wednesday after the effects of some unfounded attacks on the company by Adam Feuerstein and The Street.com look to have finally wore off.

While keeping an eye on the current Cel Sci situation, it's also as good a time as any to remind the small investor that these games are played often by those that may not have the bests interests of you - the small investor - at heart; let alone the interests of the companies which they attack nor the patients whom will greatly benefit from the advancement of the new products under development.

In order to remain grounded through the volatility, one must keep in mind that it isn't all about someone (whether that someone is a hedge fund, an analyst, a company, a small investor or you and me) making money. The largest part of the whole picture is that many of the products and treatments that are under development - the very same products that The Street takes extra time to discredit - are potentially life saving or life extending products.

As a reader of my blog said to me in an email recently, "If I lose all of my money in an investment but the company in which I invested develops a drug that saves lives, then it was a good investment."

Rest assured - The Street IS trying to make sure that you lose all of your money in these investments, but I think it's a great thing when the small investor can benefit along with a company developing a ground breaking product - and I think that cancer immunotherapy treatments are groundbreaking.

As for the attacks on these companies; it's one thing to have an opinion that the treatments won't make it to market for whatever reason - and it's fine to express those opinions, but it's a whole different ballgame to misrepresent facts and attack a company for reasons of personal financial gain at the expense of the little guy.

In VFC's House, that's called unethical.

However, these attacks - mostly likely led by short sellers who want to make money on the way down and then buy low so that they can make money on the way up - are a part of the game and the small investor needs to take advantage of it by buying on the dips, not by being scared into selling their shares.

That's where Due Diligence (DD) becomes ever so important. In order to have the confidence to hold through the storm, an investor must be confident in his or reasons for investing; if you haven't done your DD and seen the facts for yourself, and then processed those facts, you won't have the personal fortitude to add more shares as your stock is dropping.

That being said, the current CVM fiasco is reminiscent of Adam Feuerstein's attack on Antigenics (AGEN) a couple of months ago. The attack on Antigenics came via video message from The Street; a video message obviously script read by a nervous and sweaty Adam Feuerstein who attempted to use crayons to make his point - which wasn't really a valid point anyway.

In attacking Antigenics and that company's kidney cancer vaccine Oncophage, Feuerstein misrepresented facts or just skipped them completely. Additionally, there was no mention of the vaccine adjuvant QS-21 that the company has developed and is currently being tested in over 20 clinical stage vaccines. Also of note during his rant, Adam claims to "know" Dendreon (DNDN). For the record, both Feuerstein and Cramer were wrong on DNDN every step of the way. It's a classless act on the 'Stein's part to try and rewrite that history and claim to have picked correctly with Dendreon.

We can't get them all right, but there's nothing wrong with getting a stock wrong and owning up to it. The goal in stock investing is to be right more often than wrong - not to re-write history when it doesn't go your way.

To read my full response to Feuerstein's attack on Antigenics, click here.

When the attacks come, the small investor has to take them for what they're worth and invest accordingly. In the case of Feuerstein, his game is becoming an old and tired one and it's only a matter of time before people just stop listening; except for those that he works for.

Both Cel Sci and Antigenics are loaded with life saving potential. Sometimes you've just got to look past the greed to see it.

Update: I didn't spend too much time discussing Adam Feuerstein's mid-day article questioning the LEAPS swine flu trial, but I will say this:

If Adam is wondering why the company doesn't feel inclined to give him the time of day, let alone any possible insider information, I'll help him out.

In a hypothetical scenario, if someone were to spend an almost creepy amount of time talking smak about my wife and kids, and then that person called me up on the telephone and wanted to chat - I'll tell you right now that the chat is not going to happen.

To the scientists and directors at Cel Sci, Multikine and LEAPS are their babies. And they've developed their babies into viable product candidates that can potentially save lives. The 'Stein has gone out of his way to bash their babies for obvious manipulative reasons in order to - in my opinion and in the opinions of a whole lot of others out there - line his own pockets .

So he's surprised that he's the last one that anybody at Cel Sci wants to talk to?

By responding to BS you're somewhat validating it.

I think Cel Sci did the right thing by ignoring the school girl rumors and did even better by refusing to speak to the source of those rumors; especially when that source already has a reputation for misstating facts, twisting the truth and attempting to rewrite history.

Disclosure: VFC is long AGEN, long CVM.

Comments

[fran grady:]

Yes, positive data from test tubes happens everyday. They don't even have an animal model so at least 5 years from clinical trials. I can't wait that long. This stock is about day trader games not good Science.

Oct 08 10:29 AM

[American C.:]

Talking smak
The street reporter ask a question and should get an answer. If the guy working for CVM can't handle his emotions when dealing with the press he should not be working there. You have to deal with the good and the bad questions.

Oct 08 10:40 AM

[CJO-1:]

Adam and "the Crammer" do not report hard facts. Their opinion(s) is not anymore correct than ours, but they hold themselves out to be "experts". They are experts at losing your money!

DreamDrivers - spend your time looking at hard facts and if suppositions are to be generated, then Adam should based them on the facts available from the FDA, government agencies, actual companies in the business of Phams and research universities.

I learned from the company directly this week that they will contract out the H1N1 and produce Multikine in the new facility. Connecting possible dots - a paid subscription site has mentioned "SNY" as a potential buyout of CVM. "SNY" makes about 45% of the world's supply and its CEO has recently stated (you can find it on google) that they have spent 9B on "bolt-on" so far and plan to spend another 22B. Their market cap is over 100B.

CVM will make your money. Adam F. and 'the Crammer' are intent on losing your money.

CJO

Oct 08 11:40 AM

[dreamdivers:]

CJO-1, just because "a paid subscription site" has mentioned Sanofi as a buyout for CVM does not make it likely, nor does it mean that Sanofi has one iota of interest in CVM. There are probably paid subscription sites that claim Elvis is alive and doing well, that doesn't make it true, does it? Sure Sanofi is looking for other acquisitions, but that fact alone does not make CVM a highly likely target of their interest. All these wild speculations based on "connecting the dots" are generally nothing more than complete, irresponsible hype and you know it. You may not like what AF says, but he generally sticks to facts and people like you do not. Sorry, that's just the way it it.

Oct 08 11:50 AM

[jay brebner:]

If Sanofi were really interested in LEAPS they could design a similar bioconjugate peptide in about a day and a half that could do the same thing. there is so much research out there on TLR receptor binding to/activating dendritic cells in adjuvant/vaccine research it'll make your head spin.

Oct 08 12:35 PM

[BooBoo:]

I see A.F. has his multis here posting rants against you. What a joke. I'll be sure to post that THE STREET is a bunch of scammers and crooks every chance I get everywhere I can from now on.

This looks like we have a war on our hands. And THE STREET started it. The SEC will end it.

These A.F. bogus articles are one thing but the pattern of A.F. bashing Seeking Alpha (and the Motely Fools before) is another that CAN'T go unanswered.

Oct 08 01:05 PM

[BooBoo:]

Look at all the seeking Alpha bashers, New ID's! LOL, what a joke!!!

THE STREET is everywhere. CNBC is under attack too, they are a bunch of jokers.

Too much power, Seeking Alpha needs a TV show too.

Oct 08 01:08 PM

[TX Gal 4Evr:]

So good to know that you always...'tell-it-like... (good/bad) and you have no idea how much you have helped me to continue making good sound investment decisions via your articles!! THANKS!!

Oct 08 05:44 PM

[Handsel:]

I don;t see how any one would believe anything The Street com says, they act like a bunch of kids, if talk is going on between Cel-Sci and the FDA, would it not make since not to talk about it til things are iron out,maybe Adam needs to think about that before he bashes .

Oct 08 06:59 PM

[cowlady:]

If nothing else, and presuming due diligence, the fact that TEVA is partner should tell us much. TEVA is Israel's largest and most reputable enterprise. It is solid. It would not get involved in pharmaceutical scamming. That, in and of itself, is enough to tell me that this company is sound and that their methodologies and intentions are on the up-and-up. Furthermore, it points to valid science. Those of us concerned with the awful disfigurements and crippling side-effects of radiation on head and neck cancer victims will champion CVM and TEVA's efforts!!!

Oct 09 04:29 PM

[Sea-Dog:]

Jay, you act like you know what your talking about. Can you wrap your brain around what a Cytokine storm is or means?


On Oct 08 09:09 AM jay brebner wrote:

> Vinny - in all due respect, your walking a pretty fine line regarding
> the criticism of AF and his motives. Anything can happen in phase
> 3 cancer trials. Multikine is not groundbreaking. It could be that
> injecting tumors with cytokines/chemokines is simply an overlooked
> miracle cure that all the big guys missed because it was so simple
> they didn't want to bother (which is certainly possible). But investing
> because you want to show that the "really smart" folks at Genentech,
> etc were wrong and the guys at CelSci are the true heroes is not
> a sound investment game to play.
>
> Just trying to balance out the argument as there seem to be a lot
> of "true believers", which is a red flag for me, regarding CelSci.

Oct 09 07:30 PM

[Sea-Dog:]

Jay, why don't you build it. You try to sound smart enough.


On Oct 08 12:35 PM jay brebner wrote:

> If Sanofi were really interested in LEAPS they could design a similar
> bioconjugate peptide in about a day and a half that could do the
> same thing. there is so much research out there on TLR receptor
> binding to/activating dendritic cells in adjuvant/vaccine research
> it'll make your head spin.

Oct 09 07:32 PM

[Sea-Dog:]

Idiot


On Oct 08 10:40 AM American C. wrote:

> Talking smak
> The street reporter ask a question and should get an answer. If the
> guy working for CVM can't handle his emotions when dealing with the
> press he should not be working there. You have to deal with the good
> and the bad questions.

Oct 09 07:34 PM

[Sea-Dog:]

Adam can't produce a good question.


On Oct 08 10:40 AM American C. wrote:

> Talking smak
> The street reporter ask a question and should get an answer. If the
> guy working for CVM can't handle his emotions when dealing with the
> press he should not be working there. You have to deal with the good
> and the bad questions.

Oct 09 07:44 PM

[Sea-Dog:]

VFC, THANK YOU. Enough said.

Oct 09 07:46 PM

[gretel:]

Hello Adam "Frankenstein' .Thank you and Cramer for making CVM look real BAD and but a very negative spin on CVM so you,Cramer and your Hedges Buddies (and me too )can buy the Stock on a Tip and your BLIND FOLLOWERS sell CVM at a Bargain. Remember the other stocks you but in a NEGATIVE SPIN ? Dendreon went from a few Dollar stock to now $ 27.-plus, even you and Cramer gave it all the NEGATIVES in every "BOOK". See, with time the real FACTS STICK and there are enough Smart People who can read between the lines and don't follow a "Spinner" like you . Anybody knows that CVM was and is the only Company who is NOT working on Swine Flue Prevention but is the only Company who was and is working to prevent People from tying in Hospitals.The Cancer Drug will be a Bonus .Why is the FDA in a hurry in Virginia with CVM ? Wake up America , get of the TV and reserach with a open "Mind".
There is a great Chance CVM will be at $ 5.-and then up from there. Adam and Cramer look like Gangsters from a Mafia Movie.
Are you Gangsters? You sure act like Gangsters !

Oct 11 12:51 AM

[Aris:]

Excellent article by VFC regarding CVM !! He is absolutely right on his
take on CVM with a lot of potential for the small investors to make enough stock earnings in the weeks and months ahead. Hope a lot of you guys were able to buy CVM at $1.22 Thursday morning, because by closing time, it reached $1.60. Watch the price jump to $2.00 on Friday. I will not be surprised at all if come next week, it will be trading in the $3 to $3.50 area. More power to you, Vinny !

Aris 10/16/09

Oct 16 01:29 AM

[fran grady:]

The Street...Adam F is at it again saying Isen the promoter of Cvm is a crook. What do you say?

Oct 19 02:46 PM

[homeschooled:]

Meanwhile in the actual trenches of the discussion board 'Chicken head is biting the head off of that bug a. f. discussed here.
If ya like this tease of an article and comments read here then by all means go to: messages.finance.yahoo...
and join the action. CVM is fighting all the worst ones. Good vs. EVIL
It is a classic fight to the finish!

Oct 19 07:38 PM

[homeschooled:]

Meanwhile in the actual trenches of the discussion board 'Chicken head is biting the head off of that bug a. f. discussed here.
If ya like this tease of an article and comments read here then by all means go to: The yahoo discussion board for CVM- I can't do a link here
and join the action. CVM is fighting all the worst ones. Good vs. EVIL
It is a classic fight to the finish!

Oct 19 07:51 PM