BIEL:At shortly before 1PM on Tuesday shares of BioElectronics caught the interest of investors as the stock that had recently collapsed to as low as .0066 commenced a rapid, volume-induced run back to a penny.
Speculation has it that the sudden rise was related to possible pending news on the FDA front, while it’s also been surmised that the publicity expected from Friday’s episode of the syndicated television program ‘The Doctors’ – where it’s expected that the BioElectronics will be highlighted – could also have been a factor in the rapid rise.
On the day, BIEL closed up thirty percent at a penny.
During the long downtrend of the BIEL stock, sudden moves to the upside such as Tuesday’s have been known to occur, although they have turned out to have been temporary as no sustainable news accompanied the rise that would justify a prolonged price increase.
With that being known, it may be too early - after just one trading day - for long termers to get excited about a reversal. On the other hand, whether the increase is sustainable or not, the sudden spurt may have turned out beneficial for those looking to flip some of those .007 shares from earlier in the month.
For BIEL to sustain a prolonged uptrend it’ll take positive developments from the FDA and/or a report of significantly increasing sales numbers, however, due to the sudden increase of volume and price halfway through the trading day on Tuesday, investors will be speculating that news one of those fronts is imminent. Exposure on multiple continents and the possibility of news regarding FDA over-the-counter (OTC) clearances in the United States makes BioElectronics an intriguing short and long term pick.
It’s worth taking note.
Disclosure: Long BIEL.
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ACTC: After flying to over eleven cents on Tuesday, shares of Advanced Cell Technology dipped back to below the ten cent mark after the company announced news that it had filed an Investigational New Drug (IND) Application with the FDA to initiate an additional trial for the retinal pigment epithelial (RPE) line of treatment.
This proposed trial will be a Phase I/II testing the RPE treatment in patients with Dry Age-Related Macular Degeneration (Dry AMD).
Already on the forefront of various media outlets after announcing that the FDA had given the green light to commence a Phase I/II trial for RPE in the treatment of Stargardt’s Disease, the announcement of a second trial fueled the early day run and added to the future potential of the company as the Dry AMD condition effects up to 15 million people in the United States alone.
As I’ve emphasized over the past week, ACT holds significant potential over the short, mid and long term as a prospective takeover/partnership candidate and/or as a long term player in the stem cell therapy market.
That said, the run to over eleven cents cemented ACTC as a stock that has more than doubled over a very short period of time and the swing/momentum/day traders will undoubtedly take some profits.
Small investors with trading shares on hand may want some of that action as well. Volume was once again stupendous for this company that is now being looked at on a larger scope, and short term volatility aside, Advanced Cell Tech is priming to become a big player in a big market.
The initiation of these trials, however, reminds us that the treatments are still a very long way away from market. Since the biotech sector is volatile and highly unpredictable, it’s always my opinion that some profits should be taken off the table into significant runs – such as a quick double – in order to protect the long term investment.
After all, it is Christmas, wifey wants those Prada shoes.
Once GERN appreciated in value from under a buck to over five, I’ve long considered ACTC as a viable alternative, and the true potential of this stock may just now being uncovered.
Disclosure: Long ACTC.
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CVM: After a week-long holiday in the Czech Republic where Cel-Sci held a preparation meeting for the upcoming Phase III Multikine trial (search earlier blog entries for my opinions on that), shares of CVM jumped a respectable nickel on Tuesday on volume not seen for about six weeks.
No news accompanied the uptick, but any relevant price increase – or drop – will be assumed to be in relation to the Multikine trial that has been gearing up for longer than a Godfather movie marathon.
It could be that the hangovers have finally worn off from Prague and the offices at Cel-Sci are once again bustling with excitement about the trial that will test Multikine as a first line immunotherapeutic treatment for head and neck cancer.
The high-volumed, no news spike makes CVM worth keeping an eye on. If the Multikine trial is successful and the product makes it to market, then any shares purchased at the current prices will end up being looked back upon as quite the bargain.
Looking at it from another angle, Cel-Sci spiked during the last major H1N1 flu epidemic, so now that flu season is once again upon us, it’s possible that we could hear about a re-invigorated LEAPS pipeline. There's still a Johns Hopkins 'trial' that fell to the wayside when the last pandemic died down.
Disclosure: Long CVM.
