Discounted Price Levels Make CEL-SCI Shares a Solid Speculative "Buy" Bet
Discounted Price Levels Make CEL-SCI Shares a Solid Speculative "Buy" Bet
LOS ANGELES, CA--(Marketwired - Aug 1, 2013) - With shares trading at heavily discounted price levels, speculative investors looking for a good bottom bounce trade should have their sights set on CEL-SCI Corporation (NYSE MKT: CVM) who last provided investors a much needed update on their Phase III Clinical Trial of its investigational head and neck cancer drug Multikine in late April.
Not since February of 2009, have CEL-SCI shares been trading at these deflated price levels and what should compel traders to take a close look at the firm now is the fact that back then, the firm appeared somewhat crippled with no manufacturing facility and were stuck, seemingly unable to proceed to Phase III.
We saw a lot of volume and buying activity from souls smart enough to recognize the value opportunity following a recent price drop.
It should be noted that the selling surge appeared to be caused by an unexpected announcement from CEL-SCI that its current listing exchange considered the company to be noncompliant with certain, vague listing requirements. According to the news release, the firm was given an opportunity to maintain its listing by submitting a plan of compliance. The Company has said it not only intends to submit such a plan, but they also told investors to expect that development by August 19, 2013. That upcoming news catalyst alone could help spur buying and boost share prices.
In addition, some traders appear to be taking positions based on favorable technical conditions. Looking at the chart, we can see indicators starting to point to a share price recovery.
Fundamentally, we continue to believe that there are even more reasons why CEL-SCI would be considered a BUY here; starting with the bullish co-development agreement signed in late April with privately-held firm Ergomed. That clinical research organization (CRO) has said it will contribute up to $10 million towards the current late-stage study, receiving a single digit percentage of milestone and royalty payments up to a specified maximum amount in return.
As part of the agreement, Ergomed agreed to take on the responsibility for the majority of the new patient enrollments and their novel model for clinical site management is designed to accelerate patient recruitment and retention. That is a much needed improvement to have in place for the company's current Phase III trial and the Company has said that it expects to expand the trail by 60-80 sites globally.
The recently published results of influenza studies by researchers from the National Institute of Allergy and Infectious Diseases (NIAID) of the National Institutes of Health (NIH) and CEL-SCI in the Journal of Clinical Investigation continue to point to the built-in value of the Company's investigational J-LEAPS Influenza Virus treatments, but saavy investors continue to look to Multikine as the leading technology which will drive prices higher, particularly if we see news about new clinical sites and patients being added more regularly to the immunotherapeutic agent's late stage pivotal trial which is examining its potential as a first-line treatment for advanced primary head and neck cancer.
Just as we've done successfully in the past, we're calling these levels a good bottom for a great short term trade opportunity. In fact, at these prices, these don't look like shares, they look like options that don't have an expiration date and that's precisely how we'd play it here.
Disclosure: None
The complete version of this report by Ray Dirk's Research can be found here:
http://www.biomedreports.com/20130801147437/discounted-price-levels-make-cel-sci-shares-a-solid-speculative-buy-bet.html and Biotech traders interested in accessing BioMedReports' new complete database of clinical trials and upcoming FDA and world-wide regulatory decisions which can be used to make more profitable trades and see upcoming catalysts can go to: http://biomedreports.com/fdacal.html
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