Saturday, June 23, 2018

What's ahead for Resvelogix? (RVX.TO / RVXCF)

Before I chime in on what's ahead for Resverlogix I think its worth noting what's already happened, both last week and in the recent past.  Its that old saw about:  "If you want to know where you're going it helps to know where you've been". 

My last write up on Resverlogix was a week ago, on June 16th 2018.


What a week it was
After closing at $1.91 CDN Friday June 15th on the TSX, and at $1.47 USD in OTCBB trading, shares closed at $2.17 and $1.64 respectively on Friday the 22nd of June.  That put gains at over 11% on both exchanges for the 5 days, and at over 13.6% just on the TSX where trading is much more robust. 

The Naked Short Selling and subsequent forced covering through the "TSX Buy-In" facility seems to have petered out a bit.  Although there were two trades totaling 12,000 shares on Friday at $2.39 CDN by house # 100 which is used to clear trades where the seller has failed to deliver the shares they've sold. 

Here's a cut and paste of those trades along with the trades just before and after from the site for the Toronto Exchange. 

06/22/2018 3:11 PM EDT2.176000.06TSX025001
06/22/2018 3:00 PM EDT2.394,0000.28TSX100025
06/22/2018 3:00 PM EDT2.398,0000.28TSX100062
06/22/2018 2:52 PM EDT2.197000.08TSX079001

That's not the whole story of the week that was, Wednesday June 19th saw the PPS spike as high as $2.75 CDN with volume of over 1.2 million across all Canadian trading platforms.  On the US side the PPS went to $2.03 that day with volume of over 165,000. 

Increased trading volume
Volumes have jumped significantly higher in the past couple of months, especially on the Canadian side.  The catalyst seems to have been the April 17th proposed share offering and subsequent cancellation on June 8th. 

From April 17th to present there hasn't been a day with less than 40,000 trading on the Canadian side, while before April 17th it wasn't unusual to see days with less than 10,000 trading across all Canadian trading platforms.  In fact from May 9th to present RVX has not seen a single day of trading with overall volume of less than 100K.

Okay that's what was.  So what lies ahead?

The next DSMB update
Shareholders are likely looking forward to another DSMB update on the BETonMACE Phase III trial of Apabetalone.  This would be the 7th such update with the previous six all recommending that the trial continue as planned without any modifications while noting no safety of efficacy concerns.  You can read the last one from Feb 26th 2018 here: 


That last update is coming up on being four months old now.  The fifth update came out on November 1st, meaning the interval between updates number five and six was just under 4 months, putting us "in the window" so to speak for update number seven.

DSMB stands for Data and Safety Monitoring Board.    This is an independent body that reviews all available study data, Resverlogix and the Clinical Steering Committee are blinded. 

More exposure for Resverlogix
Last week Seeking Alpha publisher Avisol Capital Partners did a write up on Resverlogix.  This group has over 7,000 followers on that site and manages an investment group called The Total Pharma Tracker.


For the week ahead Resverlogix might be getting some play from readers of The Motley Fool with the publishing of an article listing 3 Biotech stocks that can electrify a TFSA, that's a Tax Free Savings Account for my non Canadian readers, both of them.  


Resverlogix might be third on that list of three, but as PT Barnum famously noted, there's no such thing as bad advertising.  Summer is now upon us, which can mean vacations, trips to the cottage or trailer, and sometimes reduced trading volumes.

Here's hoping the trading of Resverlogix keeps heating up as the temperatures get warmer.

Disclosure
I wrote this blog posting myself and received nothing in compensation for the expression of my views and opinions.  I do however hold a significant position in both shares and share purchase warrants for RVX so I am obviously biased.  

Investment in Resverlogix comports significant risk, please read the full disclaimer at the bottom of this blog.  


1 comment:

  1. Joe, What is your assessment of the validity of the post over on Agora (on 6/21) by Tundup, going thru a "conversation" he had had with RVX management on how swimmingly things are moving along? No one over there appeared to challenge it's validity, yet it was a lot of information to release in a casual conversation.

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