When You're Knocked of the Horse…Get Back On!
The Mantra of a Biotech Investor…MARCH UPDATE
Thanks to all for your feedback. As many have requested, I will begin to provide my biotech update on a monthly basis. I will do my best to have it out on the first of each month but no promises. Each month I'll give you a brief update of the stocks mentioned in the last post and any new additions I may have. A few of you have pointed out that I do not include stock prices on all the companies I mention, beginning with this writing stock prices will be included.
Dynavax Technologies, DVAX, no company news in February. My views on this one have not change since last month. If you're a bottom fisherman then you may want to take a shot. The volume has picked up a bit the last week or so and it had a nice pop today, potentially signaling a trading opportunity. Not one of my favorites but I still hold some of my position. 2/02 pps - $4.00, 2/28 pps - $4.50 up a little over 12%
Alcobra, ADHD, I recommended selling last month and I stand by that, the stock has had a little uptick the last couple of weeks with some big volume days. If you're still holding, now may be a good time to unload. 2/02 pps - $1.16, 2/28 pps -1.31 +13%
Threshold Pharmaceutical, THLD, nothing new on the company front but the stock has trended up a little this month with a few big volume days. I still recommend to accumulate on dips. 2/02 pps - .52, 2/28 pps - .60 +14%
Champions Oncology, CSBR, I continue to love Champions as a long term play but as I mentioned last month, the stock was getting ahead of itself and that I was trimming 25% of my position, I actually paired back nearly 50%. I also said not to be afraid to pick shares up below $2.50, I want to amend that just a bit. The stock moved from 4.57 to $3.50 quickly but it is showing signs of consolidation at these levels, so I'd be comfortable buying when it goes below $3.25. 2/02 pps - $4.57, 2/28 pps - 3.45 -25%
ProtoKinetix, OTCQB:PKTX was my big winner in February. As I've been saying, it's just a matter of time until the market takes notice of what they're doing. Late January, the company was approved by Health Canada for Human Clinical Trials. As mentioned last month the trials are Investigator Sponsored by the University of Alberta, so the company isn't paying for the trials. The company announced this month that their AAGP molecule is currently being studied for its viability for use in stem cells for retinal treatment. The press serves as a reminder that PKTX is not a one trick pony…they have more going for them than just the ongoing Canadian trials. Although the stock has had a significant run, I'm still a strong buyer at these levels. Last month I said I'd be a strong buyer up to .20 then wait on clinical trial results, but given the trajectory of the stock, I think you're fine buying it higher than that. I believe there is real break out potential in March. Accumulate your long term position now but if it goes through .14 and stays there, expect a real break out, enjoy the ride and trim if it gets near .30. 2/02 pps - .0835 2/28 pps - .12 +50 %
Last month's new addition was ZIVO Biosciences OTCQB:ZIVO. My little algae play plugged right along this month with little excitement. It did have a couple nice volume days bolstered by this Seeking Alpha mention, https://seekingalpha.com/article/4048428-capitalize-trumps-america-coal-algae-new-solar The stock has been quieted the last several days with a 900,000 share sell order weighing down the ask. I still believe this to be a relatively low risk way to play the bio-techs and I would be accumulating here. No need to be too aggressive until the monster ask goes away. 2/02 pps - .11, 2/28 pps - .11 UNC
I am adding a new pony to the stable this month, Orgenesis Inc., OTC:ORGS. The company's science is trying to cure T1 Diabetes, versus just trying to manage the symptoms. It has a therapeutic technology that employs a molecular and cellular approach directed at converting a patient's own liver cells into functional insulin producing cells, as a treatment for diabetes. By converting the diabetic patients own tissue into insulin-producing cells, you overcome the problem of donor shortage and removes the risk of transplant rejection. It is the only company out there actually trying to cure T1 diabetes once and for all. On February 13th the company announced receipt of a 3 year $12 million euro grant, beginning in January of 2017. The stock traded by appointment at times last year but its beginning to get some attention. Although it's already doubled since January don't be afraid to step in now, the run has been on pretty low volume. This stock just begun to get noticed. I'd buy 25% of my position now and wait for a dip to .60, but watch this one closely, if it goes above .85 then it's off to races and you'll want to jump in quick. 2/02 pps - .55 2/28 pps -.80 +45%
Disclosure: I am/we are long DVAX,THLD,CSBR,PKTX,ZIVO,ORGS.