RE:Why is there little market confidence in Biovaxys?What's so extraordinary? Have you looked around at the junior resource sector lately? These kind of price swings are normal. However, in the junior or senior precious metals and copper space, the price movement is more easily understood by commodity price swings. But politics also plays a role in them. And of course, the demand from China can be also problematic for the demand for commodities. And the recent run up in Bitcoin may also be playing some role in the some of the selling in all different sectors!
BioVaxys shares have been undergoing a consolidation phase in price ever since the very recent up tick from the 4 or 5 cent price level. Profit taking is a very normal event after such a move up.
But fundamentals also play a significant role in the price of this early stage biotech company. The company's press releases and comments by shareholders have already addressed these issues. The company has been most transparent in this regard and is not holding anything back from their shareholders. They are well aware that the low share price limits some of their ability to pursue many of the phase 2 or 3 trials that might choose to run. They can't readily access that kind of capital on their own. So they will limit their focus in the short run on allergen remedial measures. Their success in this regard could provide a good revenue source in the future.
Unlike IMV, this company has no intention of going bankrupt and they are moving very cautiously ahead in their process of growth!
Many of their patents that were acquired from IMV may be licenced or partnered out in the future. Or if the share price eventually does rise significantly high at sometime in the future, then a less dilutionary means of gaining access to capital might allow the company to proceed on its own with some of these patents. But that could be a year or more away! In the short run, they will explore the least costly means to achieve the maximum return for shareholders that needs the least costly trials to accomplish that end.
A fundamentally price driven company is moved higher n the market by news that has to be good!
A new licencing agreement with big pharma could be a big driver in the share price. The company already has some licencing agreements in place with the new start-up SpayVac and the bigger player Zoetis for the use of their DPX lipid delivery platform in the fertility control of animals. But the proper governmental approvals for these companies to proceed with production won't be received until next year according to information provided by the company. Once production begins, BioVaxys should begin to see some licencing revenue, start coming in.
BioVaxys has been trying to procure some 43 kg of lipid formulation that was left at Dalhousie University in Nova Scotia after the bankrupcy of IMV. That amount of formula would take a whole year to produce. But in the nano particle space, that amount of patented DPX lipid formulation would keep the company working for three years into the future.
And they also are attempting to gain access to that same university laboratory's space and left over lab equipment that IMV left behind after that company failed.
With respect to its so called questionable accounting practices, it is not unusual for a small start up like this one to have some temporary 'hic-ups' or delays that might trigger a temporary trading halt. This is also not unusual in the junior commodity exploration space.
After all, they have had a busy time attempting to raise public capital to keep the company alive. They have no present revenue stream and have the usual administrative expenses and future purchasing requirements, many of which have already been discussed.
The company has acquired 200 million dollars US of intellectual property rights from IMV for only one million US dollars in equivalent shares and cash. The company has rightly claimed that this was an incredible coup in the biotech space. And company management shrewdly moved very quickly to accomplish this end!
Investing in the junior market place needs a person with some patience and commitment. Penny flippers might choose to look elsewhere if that is the game that you seek!
Wait for some better news, perhaps another licencing deal or wait for the beginnings of some revenue stream next year and the price should start to move!
Many shareholders seek immediate short term profits. Perhaps it would be better to seek that more immediate kind of return by buying much bigger companies with their growth profile already available and studied by analysts who make their living by dilligently investigating all of the financial facts! A small start up company can't really be studied this way!
Or perhaps a smart and luckier invester might have quickly jumped aboard the Bitcoin bandwagon after Trump got elected!
But as I learned today, just one company in the US, started this move higher by buying up 2 billion dollars in bitcoin to gain their immediate financial advantage! It seems that they were just waiting for the election results to pull their bigger trigger first and send the market higher!
Should we consider this kind of market manipulation, a good reason to buy?
Listen to the videos that BioVaxys has already done! Or reread some of the most recent press releases and assemble all of the already known facts.Then determine if this is really the company that you thought, you had bought!
In a start up, many future facts remain uncertain and management can't control, what other bigger companies, may choose to do! They can only work to provide a more convincing argument to any potential partners or licensees that they may have something better to offer than the rest of the competition!
I am very surprised that any current shareholder has not already done their due dilligence, already.
There is nothing about this company and its potential future that management has held back from any of it's shareholders! It's publicly and easily available information.
BioVaxys is in the beginning phases of its growth. But it seems to me that longer term, it future looks bright!
And the most pleasant of surprises could come, when me might least expect it!
For a start up company, what more could you ask?
All the best! Java