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The Microcap Speculator submits: Mattias, a regular reader of my blog from Sweden, has sent me a series of great stock suggestions. First, he urged me to take a look at Adherex (ticker: ADH) when it was trading at $.82. Now its about 50% higher. Next, he said that ImmuCell (ticker: ICCC) looked cheap. He was right. ImmuCell knocked the cover off of the ball in its latest earnings report and shot up nearly 20%.

Mattias is now buying shares of OxiGene (ticker: OXGN), a Massachusetts biotech company focusing primarily on cancer drugs. While Mattias is not enamored with the CEO and fears that the company may try to sweep some disappointing early stage trials under the rug, he thinks the Chief Science Officer is top notch and the future trials of the lead drug, Combrestatin A4P, warrant looking at the stock:

"The science is exciting and preliminary results indicates a fair chance for entering bigger randomized ph III trials. When a micro cap goes in ph III, the valuation often starts to move upwards.

Over the upcoming 6-12 months I expect the pipeline [to become] narrower. Some of the indications/trials will not continue. I really hope MMD [myopic macular degeneration] will be scaled up to a ph III and that the triple combination with CA4P+Taxol+Carboplatin looks great. Question is will they communicate on some strong results before they dump some of the other [trials] officially."

Mattias warns that the stock is unpredictable, so he is keeping his purchases small for the time being. I have decided to join him. While I don't understand enough of the science to gain an edge here, I believe that Mattias does. I'll look to technical levels to control risks and will keep my position small until it can make a sustained move above $4.50.

DISCLOSURE: I am long OXGN. Not a recommendation to buy or sell any security. For informational and educational purposes only.

OXGN 1-Yr Price Performance:

Source: Reader's Micro-Cap Pick: Oxigene (OXGN)