Intended for VFC's Stock House only. No re-publishing or re-printings are authorized. Originally published at VFC's NEW Stock House.

ONTY: When Onconthyreon recently announced a stock offering of $40 million, the news stalled ONTY's run and sent shares south of the $5 mark once again, after having jumped above that barrier in previous trading.

Since that time, however, shares have jumped significantly higher and hit $6.01 on Friday before closing at $5.91, up over seven percent for the day on over five times the normal trading volume.

The results of Oncothyreon's Stimuvax trials should start being finalized late this year, with a release of those Phase III lung cancer results expected for early 2012.

Stimuvax is another of the cancer vaccines that are looking to be the next step of progression for cancer treatment, and the success of Dendreon and its prostate cancer vaccine Provenge make any such experimental vaccine highly attractive to investors looking for the next Dendreon.

More importantly, an increasing patient base is looking forward to the prospects of these new treatments coming on line, with hope that they could provide an eventual alternative to the horrific side effects of treatment with radiation and chemotherapy.

I always suggest taking advantage of significant price spikes to make use of those trading shares, and lower the overall risk of an investment by already being on 'house money' before the big news hits - in case that news is bad - but ONTY continues to be an accumulation play, in my opinion, leading into next year's expected results.

This price run could be an indication that the stock is finally getting noticed, but expect to see some profit taking along the way. Also expect increased volatility leading into the results.

Disclosure: Long ONTY.

Zecco Holdings

Add a Comment