RVX which I last wrote about on September 10th has been on a tear over the past 6 trading sessions.
On September 7th the PPS closed at $1.20 on the Canadian TSX, and after 6 consecutive positive days it closed Thursday Sept. 15th at $1.54 for a gain over over 25% over that short span. On the US side where Resverlogix trades OTC Foreign with the symbol RVXCF the shares have gone from $0.94 at the close on Sept. 7th to a close of $1.17 currently for a jump of almost 20%.
And the volumes have picked up considerably....on the Canadian side volumes for Sept 15th hit 113,368 with 55,100 reported trading on the U.S. side. That compares to 3 month daily average volume of around 25,000 and 3,000 respectively.
Big gains over a short period of time on what is still thin trading, but still substantially higher volume than normal So what gives?
Obviously its impossible to say for sure, buyers don't put out PRs saying: "We're buying RVX today because...". But I think there's a good chance that their presentation at the Rodman & Renshaw Global Investment Conference in NYC on September 13th may have something to do with it.
During their presentation the company said they will be announcing a second licensing/partnership development deal. The first such deal was announced last April involving Chinese based Shenzhen Hepalink Pharmaceutical. In the weeks and months leading up to that announcement shares of RVX went on an absolute tear, climbing from less than $0.60 CDN to over $3.00.
If similar gains are in store, then RVX is starting its run from $1.20 CDN instead of 50 odd Canadian pennies.
For those who want to listen to the presentation its available on line here:
That presentation requires registration. For those who just want to see the PDF presentation it can be accessed here:
Now please note, RVX has traded higher for six consecutive sessions and obviously at some point there will have to be at least a pause, if not a pull back. After the close Nasdaq listed Novavax Inc. announced a trial failure causing its share price to absolutely crater by around 80% in after hours trading. NVAX trades over 5 million shares on average per day, so obviously it has a very large following. On StockTwits NVAX has over 8,000 "watchers", RVX by contrast only has 63 currently.
I consider it possible that NVAX could have a domino effect on other speculative biotechs. We shall see. Regardless, if Resverlogix succeeds with their currently running Phase III BETonMACE trial I think a valuation in the billions is very possible given all the potential indications Apabetalone could impact.
Comments are welcome, do note I am a shareholder so my opinions should be considered extremely biased.
I am sure the owners of NVAX stock are not going to be in a good mood today, especially is they are overweight in it. I have been watching NVAX for a few weeks and have been tempted to buy a few shares but luckily never did. Investing in speculative biotech stocks can result in wealth or ruin and I think some retail investors ignore the high risks and later regret it. I own shares of Resverlogix and hope (not a good trading strategy!) they are successful. Upside is huge but don't forget the saying "don't invest money you can't afford to lose" as I am sure owners of NVAX will be realizing this morning.
ReplyDeleteSage advice....obviously if the phase III trial is successful, I don't think a valuation in the billions is at all unrealistic...that's the reward. But the risk that they could fail is also very real.
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