 |
 Trading
Alert: Get This Biotech Before A Breakout. |
|
|
 We
first alerted the readership to a unique biotech company, CEL-SCI
(AMEX: CVM),
in November
2002 at 21 cents. The shares of this proprietary cancer/disease
therapeutics company are exceptional traders and during our coverage period
readers had several significant and very profitable trading opportunities.
The
shares hit $1.80 by the fall of 2003 for a return in excess of 750 percent—an
exceptional winner.
With the shares now in the 50-cent
range, we strongly feel that the best appreciation for CEL-SCI shares is
yet to come.
CEL-SCI is currently at the threshold
of a major period of growth that could well result in the share price meeting
or exceeding those previous stellar runs over the next 6-12 months.
It can and has happened before. For
example: on March 3, 1995 a little known biotech company named Imclone
System (NASDAQ:
IMCL) closed at $0.19 per share (a split adjusted price
of $0.38 per share). Over the course of the next seven years this biotechnology
company began an incredible run that may never be equaled. Imclone's
stock reached a pinnacle on December 5th, 2001 when the stock closed at
$146.66
per share (split adjusted $73.83 per share).
We strongly suggest risk-oriented
traders as well as long-term investors accumulate CVM shares at these depressed
levels.
 The
blue circles in our weekly chart represent the some of the multiple trading
opportunities the shares of CVM have afforded investors in the past. Over
the last year, the shares have been range-bound between 50-60 cents—nowhere
near where they should be, in our opinion given the progress of the
company in the last 18 months. Buying shares when they appear lethargic
or are seemingly being ignored has worked very well for our readers in
the past. Our previous successful coverage of CEL-SCI is a prime example:
buy the stock when no one seems to care and sell some on the spikes that
typically show up, usually with no warning. We see significant support
at the 45-cent level should the shares dip slightly from here.
The difference now from our previous
trading coverage is that we feel that long-term investors should also
take a good and hard look at the shares. As it moves into the Phase 3 space,
news and developments should give the shares added and extended horsepower.
These activities, as they play out, should fundamentally and profoundly
move the Company from the formative/developmental stage to the
developmental/commercialization
stage. As that process occurs, we think that there will be significant
growth in market cap and, of course, the share price.
Reasons to own CEL-SCI:
-
Chart technical picture appears very
constructive and attractive for accumulation at these undervalued levels.
-
Phase 3 Clinical Trial for head and
neck cancer granted by the highly regarded Canadian Biologic and Genetic
Therapies Directorate for its patented MultiKine Cancer Drug.
-
Multikine is not tumor specific; therefore
it may also be applicable in many other solid tumors.
-
Company confident that FDA approval—CEL-SCI
is well along in the regulatory process-- for a Phase 3 Multikine study
will ultimately be granted.
-
In December agreement signed with National
Institute of Allergy and Infectious Diseases (NIAID) to test CEL-1000 peptide
as a potential treatment/preventative agent against the HN51 virus (avian
flu).
-
CEL-1000 has shown protection in animals
against malaria, herpes and cancer
-
Market capitalization of under $40 million—great
potential for expansion of market cap as it is at a significant discount
to other comparable biotech companies.
-
Patents secured on both Multikine and
CEL-1000.
-
Over 2005 many papers, presentations
and peer reviewed articles delineating the Company’s therapies and efficacies
to potential partners and licensees.
As we said in a previous article: Owning
shares of CEL-SCI is similar to owning a long- term option on a revolutionary
new cancer drug. The bonus is that this option never expires.
Unlike traditional big Pharma companies,
which focus on late-stage or end of life drugs and therapies, CEL-SCI’s
safe and non-toxic immune-based technologies are developed to effectively
treat early stage disease and lower the potential for deadly recurrences.
As CEL-SCI CEO Geert Kersten concluded
recently: “Our ultimate goal is to add Multikine to the first line cancer
therapy to make the first treatment more successful. The bottom line is
simple: If the cancer does not recur, you will survive”.
Here’s a review of the core technologies
for those who missed our previous coverage:
Multikine is a combination,
or "cocktail", of natural human interleukin-2 (IL-2) and certain lymphokines
and cytokines (regulators of the immune system). In human testing Multikine
has been shown to induce both an anti-cancer immune response and to significantly
increase the susceptibility of the tumor cells to radiation therapy.
As an immune modulator, Multikine
is an amazing drug. It is ostensibly a biologic comprised of cytokines
that stimulate the human immune system to overcome tumor tolerance. The
pending Phase 3 trial will test the hypothesis that Multikine treatment
administered prior to the current standard therapy for head and neck cancer
patients (surgical resection of the tumor and involved lymph nodes followed
by radiotherapy or radiotherapy and concurrent chemotherapy) will enhance
the local/regional control of the disease, reduce the rate of disease progression
and extend the time of progression free survival in patients with advanced
oral squamous cell carcinoma.
CEL-1000 is the leading product
to come from CEL-SCI’s patented Ligand Epitope Antigen Presentation System
(LEAPS) technology platform. Any disease for which antigenic epitope sequences
have been identified, such as infectious diseases, cancer, autoimmune diseases,
allergic asthma and allergy, and select CNS diseases (e.g., Alzheimer’s)
are potential candidates for this technology platform. The CEL-1000 peptide
has shown protection in animals against malaria, herpes, viral encephalitis
and cancer.
We believe that the potential for
CEL-SCI is enormous. Risk-oriented investors, whether they've played CEL-SCI
before or not, should be well rewarded as the story unfolds through 2006.
 |
Got comments, questions or suggestions?
Send 'em on over: Editor@smallcapdigest.net
If you wish to send a written request
or inquiry, please send it to our physical address:
TGR Group, LLC
4653 Carmel Mtn Rd Suite 308 #402
San Diego, CA 92130 |
|
| CDW
Sales up. Shorts beware? |
| Nice
move in the shares of hardware/software seller CDW Corp, which we profiled
Feb 1 at $56. Company announced January 2006 monthly sales figures were
up almost 9 percent from January 2005. Popped the shares almost $2 to $57.70
Thursday am. The company announces sales figures monthly and February figures
are to come out March 9th. Nice visibility for shareholders.
Company
is long lots of cash; no debt and business growth appears to be defying
the naysayers. Don’t forget too that there is a large short position; 7
percent or north of 4.5 million shares. Could boost the price nicely if
the shorts get skitzy, which is looking more and more likely. |
|
|
| |
| Verizon
popping, wirelessly. |
| Shares
of wireless behemoth Verizon weathered the recent market declines nicely
and moved up to well north of $32, Friday to extend the run that began
Wednesday late in the session. We issued a Trading Alert on the shares
on January 28th and it looks like the wireless wave is underway and should
propel the shares higher over the next 6-12 months.
Seems
a sector investors should be in for the long haul. Growth, R&D and
expanded enterprise capital expenditures in 2006 should shine favorably
on both the sector and the Company.
Lest
y’all forget we like the prospects for giant AT&T too, which has moved
from our call January 28th at $25.89 to $27.30, Friday. Nice dividends
(5 percent) on both as well. |
|
|
| |
| SC
Digest: Live and Nationwide |
| Your
humble scribe was interviewed the other day by Wallst.net regarding the
SmallCap Digest, our thoughts on Clearly Canadian and other topics of interest.
I have to admit, it was kind of fun to spread the word and use another
medium to reach the readers, old and new. Likely we’ll do some more of
that kind of thing in the future as we consistently increase our relevance
to our readers—our most important component.
Here’s
the link if you have a couple of minutes: http://wallst.net/superstock/CCBEF/ccbef2.html.
I have a great face for audio streaming… |
|
|
| |
| The
Old Cash/Sidelines Argument |
| Some
guy on CNBC Friday morning spouting –once again--about how much cash there
is on the sidelines. Of the $650 billion apparently that was invested in
savings vehicles over the last while only $30 billion went into equity
funds. Apparently, the rest of this largesse is going to stomp into the
market at some indeterminate point in the future and rock us up 20 percent
this year, he said. The fact that most investors are either invested in
other global markets or just aren’t risk-oriented seemed to confuse him.
Needless
to say, he couldn’t come up with the catalyst that would accomplish this.
I have been hearing this argument for decades. It’s a crock, frankly. Markets
move when markets move, mainly on earnings and growth and against a constructive
economic background. Money arrives in the market over time and when the
time is right, not simply as a large lump that arrives willy-nilly. Herding
cats would be a better use of your time rather than sitting around waiting
for that wall of money to arrive. |
|
|
|
