CVM redux
January 26, 2012
– Comments (9) |
RELATED TICKERS: CVM
I once posted about CVM as a potential major multi bagger here:
http://caps.fool.com/Blogs/cvm/472696
As an aside zzlangerhans had switched tunes and green thumbed the stock June 13, 2011.
Recently there has been much buzz about the stock. The CEO issued a basically upbeat letter to shareholders and then shortly thereafter announced a stock dilution in a private placement of 16 million shares for 36 cents per share with 12 million warrants exercisable at 50 cents. Needless to say there was much hollering and namecalling on the Yahoo message board as a result.
Personally I found it an opportunity to add more shares. I am not interested if the stock goes from 36 cents to 50 cents. I am not interested if the stock goes to 75 cents or 95 cents. I am buying the stock in the expectation that it will go to 10 dollars, 20 dollars or more 2 years from now. That is what speculation is all about.
How many times have you looked back on a company that is selling for say $30 but years prior sold for 80 cents and said "man wish I bought it back then."
Speculation should be a part of all investment accounts, though within reason.
This company has a legitimate product. It is in a massive Phase 3 clinical trial. It has the support of a major Pharma company (Teva). All it needs to do is show at the minimum a 10% survival rate from neck or head cancer is achieveable with their "product." Hell if I were suffering from such a fate I would demand that product without hestation if that was the case. Its phase 2 trial showed a 33% survival rate, albeit it was a small sample.
While the company isn't a "one trick pony" since it has other products of worth, should its current phase 3 trial on its multikine head neck cancer treatment prove effective you have that serious multi bagger. Next year we shall see. I am rolling the dice that it is a winner.
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