Shares of Cel-Sci Corp (NYSEMKT:CVM) were up by roughly eight percent for most of the day on Monday, with no news being released in conjunction with the price rise and not much more than the average volume trading throughout the day. Cel-Sci did receive mention on a couple of popular news and finance related websites, however, as Fox Business and Forbes.com noted the gap up and early price action of the company's stock and highlighted the performance as one of the best in biotech.
Another recent high-flyer made the Forbes report as well, as shares of Synergy Pharmaceuticals (NASDAQ:SGYP) opened the week with a fourteen percent price spike after making this week's watch list due to heavy trading and a quick price spike over the past few trading sessions. Synergy has billion-dollar potential in itself and that notion was even strengthened last week on news of a competitor setback.
Although there was no news behind the CVM spike, it could be time for investors to start taking note of the progressing Multikine Phase III trials that are taking place around the globe. As a potential first-line treatment for head and neck cancer, Multikine could also hold billion-dollar potential, if it should make it through trials and reach market. CVM has partnered with Teva Pharmaceuticals (TEV) and Orient EuroPharma to bring Multikine to market in Israel and Taiwan, respectively, and the world-wide trial is expected to be the largest ever of its kind.
Cel-Sci has its high-profile doubters and comedians that are almost guaranteed to come out of the wood work each time the company realizes any success, but investments in this sector are not made by banking on sure things; they're chiefly made on an evaluation of a company's risk/reward profile and its pipeline potential. When a small or microcap company sees its pipeline through late stage trials or achieve the ultimate goal of commercial success, then the rewards can pay off very well; hence the Dendreon (NASDAQ:DNDN) story - and that company had its doubters, as well.
The past couple of years of trading have come with great percentage peaks and valleys for investors and traders of CVM, points at which were opportune times to play with some trading trades, but it's possible still that CVM could inch higher still as the Multikine trial progresses. The stock opened the year at thirty cents and has already hit double that for a time in March, so the games may have just begun.
Little has been heard from the company in regards to trial updates, so if something does hit the wires, shares could move quick.
As the share price rises, so does the risk in a speculative Multikine investment, but there's little doubt that positive results from the ongoing trial would quickly turn Cel-Sci into another cancer immunotherapy success story in the mold of Dendreon, whose shares soared when Provenge made it past Phase III.
CVM held a nice gain through the day on Monday. SGYP surged early then retreated somewhat as the day progressed, but volume was up pretty significantly.
Both are hot stocks to watch these days.
Disclosure: Long CVM, SGYP.