|Three biotechs with positive institutional transactions, strong price to cash ratios and "buy" recommendations from analysts|
|By A. Deniken|
|Thursday, 22 May 2014 04:18|
The names of big-board biotechnology listed firms IsoRay, Inc. (NYSE MKT: ISR), CEL-SCI Corporation (NYSE MKT: CVM), and Rexahn Pharmaceuticals, Inc. (NYSE MKT:RNN), came up after we set out to find low priced biotech stocks with market caps in the $50m to $300m range which, based on a fixed set of fundamental and technical criteria, might be hinting at bullish investment trade sentiments.
In this case we were curious to see if we could find any reasonably priced stocks listed on major exchanges whose share prices might be stabilizing for a move higher following recent pullbacks. We sought specifically any “cheap” biotech stocks which showed positive institutional transactions (within the last three months), whose Year to Date Rate of Return (stock price performance) was over 50% and whose stock’s market value compared to its cash assets most certainly appear undervalued (A Price/Cash value Over 5) and who analysts which cover the stock report their outlook is a “buy” for the stock.
IsoRay, CEL-SCI, and Rexahn all fit those themes, specifically within the healthcare sector but we used it as simply a starting point. An even closer look at each of their businesses and filings may provide more clarity.
Interestingly, all three firms boast the development of powerful new cancer treatments. And while some may argue that all three could be poised for significant long-term growth, biotech traders and investors tend to suffer from short attention spans and instead usually opt to trade on catalysts and news. Two of the firms, CEL-SCI and Rexahn hint at interesting milestones.
Rexahn, the clinical stage biopharmaceutical company developing therapeutics for the treatment of cancer released a statement from its Chief Executive Officer, Peter D Suzdak, Ph.D. which stated that: "By the end of 2014, we expect to achieve key milestones in each trial. In the fourth quarter we expect to have data from our Phase I trial of Supinoxin™ in cancer patients with solid tumors. We are also scheduled to complete enrollment of patients in our Phase Ib clinical trial of RX-3117 by the end of 2014. During the fourth quarter of this year, we anticipate completing the safety portion of our Phase II trial for metastatic renal cell carcinoma."
Still, RNN’s technical chart is showing lower lows since spiking as high as $1.80 (intraday) in early January, this despite a recent 20% price bump that was not able to hold any momentum. Technically, it looks to us than an entry trade near the $.80 level may be more appropriate if someone choses to believe recent articles touting the stock.
CEL-SCI, which is dedicated to improving the treatment of cancer and other diseases by utilizing the body's own natural defense (immune) system. Has recently reported several key developments from its lead investigational therapy, Multikine (Leukocyte Interleukin, Injection), which is currently being studied in a pivotal global Phase III clinical trial.
The firm, previously accused of dragging its feet, reported March and April 2014 as new record months for patient enrollment in their Phase III head and neck cancer trial. They added their first expansion site in the U.S. as well as a large number of clinical centers around the world, much to the delight of long time shareholders.
And while CEL-SCI also stated that the Investigational Review Board (IRB) of the U.S. Naval Medical Center, San Diego approved the start of a Phase I study of Multikine in HIV/HPV co-infected men and women with peri-anal warts, various clinical trial monitoring sites have now been reporting that the trial is now “fully enrolled.” As such, one would expect that important news from that study could appear in the very near term. It has been previously reported that the US Navy had fast tracked the company's proprietary version of small proteins that regulate immune response and inflammation for the possible treatment of one of today’s most common sexually-transmitted diseases.
Interestingly, of the three, CEL-SCI’s shares are the only ones showing significant insider purchases by its own management during the last six months. According to FINVIZ, there has been an over 50% change in total insider ownership and as traders know, insiders usually buy their own shares for one reason: they believe the stock is a priced too low and that it has upside potential.
IsoRay, a medical technology company and innovator in seed brachytherapy and medical radioisotope applications for brain cancer, lung cancer, head and neck cancer, prostate cancer and gynecologic (“gyn”) cancer saw shares jump from just over $1 to over $3 as recently as mid-March. A number of positive news releases have followed since then, but even last week’s announcement that the firm had received final approval from the State of Washington Department of Health to manufacture its recently FDA cleared Liquid Cesium-131 (Cesitrex®) for use with GliaSite® balloon catheter for the treatment of metastatic and glioblastoma brain cancers was not enough to break shares prices higher after a pull-back to 50-day moving average levels around the $2 level.
Both IsoRay and CEL-SCI’s technical analysis charts appear to show that share prices are finding both consolidation and support at current levels and each of them are in "oversold" (WM%R) territory, so we see entry trades at these prices as relatively safe, if not attractive.