|When All Else Fails, Change The Subject: Latest on Cel-Sci (Updated)|
|By Vinny Cassano|
|Tuesday, 06 October 2009 03:00|
Shares of Cel Sci (CVM) traded down during early trading on Tuesday after The Street.com published yet another article bashing the company and the potential of its pipeline. Undoubtedly some shareholders are going to be shaken out of the stock by the antics of biotech basher Adam Feuerstein, but I say take advantage of the dip.
It is obvious that Feuerstein has an agenda against the company. He has either published or- as time stamps indicate- re-released hit pieces against the company several times over the last few days in what many perceive to be a bad-natured effort to keep his negative and misleading headlines on top of wire feeds. All of this in an effort to draw attention away from the facts and reports that have investors trading the stock at volume levels that haven't been seen by the company for years.
After questioning the science and credibility of the company twenty four hours earlier, Feuerstein was suddenly faced with a very public discourse from Dr. Ken S. Rosenthal, Ph.D., Professor, Microbiology, Immunology and Biochemistry, Northeastern Ohio Universities Colleges of Medicine and Pharmacology after he published an explanation of CEL-SCI's dendritic H1N1 treatment, being developed as a treatment for H1N1 hospitalized patients. Prior to the news release containing Dr. Rosenthal's findings, Feuerstein had called the company's technology and work into question. Why?
The ground-breaking treatment is based on CEL-SCI's L.E.A.P.S. technology and the doctor, through his unmitigated review, took readers through a very detailed and exact scientific explanation of the new drug candidate. The doctor's presentation made shares jump late in the day on Monday. As others have pointed out here and in many publications elsewhere, this L.E.A.P.S. technology can activate and cause human blood monocyte cells to become dendritic cells that secrete the IL-12 cytokine. The dendritic cells that result initiate a protective cell mediated and antibody immune response. Results were obtained for L.E.A.P.S. vaccines against herpes simplex and HIV. An upcoming presentation by company officials scheduled for later this month will highlight L.E.A.P.S. treatment for rheumatoid arthritis (RA) and that space alone can open up a billion dollar market for the company.
Instead of addressing the evidence presented by the professor (which was quite contrary to anything published by his own website), Feuerstein decided to post "findings" about citizen-journalists and unrelated opinions posted on non-editorially controlled publications, forums and e-mails.
This is one of those situations where a shareholder needs to rely on their own due dilegence and decide for themselves whether or not their investment is a worthy one. I don't hide the fact that I've been a shareholder of CVM for some time and I made it a point to buy as many shares as I could afford while the stock was trading for under thirty cents. I'm also willing to add to my position now because, as I've stated before, I really like the potential of the Multikine® cancer immunotherapy drug, L.E.A.P.S. and the FDA fast tracked treatment (not vaccine) for H1N1. Furthermore, I know for a fact that these treatments will be attracting more indisputable positive attention in the days ahead.
In my opinion, the Cel Sci's swine flu treatment using the L.E.A.P.S. technology, currently being investigated for effectiveness in a human clinical trials, shows that it could become the "icing on the cake" if it performs as well as many of those familiar with it expect it to.
I'll also reiterate the fact that Cel Sci's Baltimore impresive new manufacturing facility is due to open in short time. That will most likely come with an announcement informing investors about the official start date for the long-awaited Multikine® Phase III trial. In my opinion, this head and neck cancer immunotherapy hat harnesses our body’s natural ability to fight tumors performed very well in Phase II trials and will be huge if it makes it to market.
So ignore all the hoopla, even mine if you choose. Concentrate on the facts and scientific evidence; then invest based on your own assertations of that data.
As a parting note, I want readers to keep in mind that Adam Feuerstein, Jim Cramer and The Street.com were on the wrong side of Dendreon Corporation (NASDAQ:DNDN) BOTH TIMES the stock rose from about four dollars to the mid twenties. I remember Cramer clearly broadcasting on his 'Mad Money' CNBC show- insinuating that the doctors got it wrong. In his mind, 'The Street' didn't believe in Provenge, so "neither should the doctors." He spoke about hedge funds that went bust for betting against Provenge - almost as if he wanted us to feel sympathy for them.
These guys bet against DNDN, lost, and now Feuerstein re-writes history by claiming that DNDN was a victory of his. His bashing of Human Genome Sciences (NASDAQ:HGSI) is legendary and still being quoted today.
In contrast, DNDN and HGSI were two stocks written very favorably about here. You have to wonder. Have Feuerstein and company realized just how late to the game they are with Cel-Sci (the stock is already a five-bagger this year, even with the recent pullback). Maybe they need to drop the stock so that their 'boys' can buy in to some of the upcoming action at a lower price. Purely my own speculation, of course, but it makes little sense any other way, especially when one tries to evaluate it using simple logic.
Guys like this have little interest in whether a new and potentially life saving product ever makes it to market - they only care about money. Not your money, not my money - only the money that lines their pockets. Small-cap investors needs to be fully aware of that and must try to keep a clear head when there's a thousand things coming at you from those who would gladly swipe the last dollar from your hand.
As is always the case with investing in companies that are developing potentially life saving drugs, the real benefit comes to those patients that need it. Any financial gains made by investors is largely a secondary benefit compared to the real benefit that the patient receives - life.
Disclosure: Long CVM.