Thursday, January 13, 2005

Long XNVA Courtesy of Larry Thompson

I'm picking up some of this micro biotech on Friday before the open. An article in the latest issue of Forbes ran an article on the Marketocracy Online Fund. It quoted Larry Thompson, a 27 year old MBAer with a gift for stock picks. Apparently, he is no babe in the woods when it comes to stocks--he worked on the Street before heading off to a top graduate program, all this after winning a stock selection contest as an undergrad. According to him, here is why XNVA is a buy:
This is a good investment for dollars allocated to the growth oriented style. The market has only given this compan' pipeline of cancer drugs a $10 mil value. I have not yet calculated hard numbers, but I can tell you that the one product in phase 3 trials alone is worth more than $10 mil , let alone the others in earlier stages.It is always a gamble whether or not the products will prove to be effective. But if people were/are not willing to place small bets, how can we ever hope to find cures or treatments for any health problems, as the companies performing the neccessary research to do so will not have any appropriate funding for their activities.In short, with a $52.5 mil cap and $42 mil of TANGIBLE assets minus ALL liabilities, this company is severely undervalued. Future capital raises (dillution) would be my only concern. There is plenty of room for a 100% ROI. Let's see, that would give the stock an approximate $2.40 per share price.
Xenova is focusing on the research and development of novel commercially attractive drugs, primarily for the treatment of cancer, infectious disease and addiction. A quick glance at my IBD Daily Chart tells me we might be looking at a double bottom pattern. I'm sold. Next.

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