Loaded with Life Saving Potential and Under Attack Print E-mail
By Vinny Cassano   
Wednesday, 07 October 2009 03:00

Shares of Cel Sci Corp (AMEX:CVM) were boucing on a strong rebound during early trading on Wednesday. The effects of an unfounded stream of attacks on the company appear to be losing their bite.

The latest questions and about the company's H1N1 treatment are not even worth commenting on given that the fact that government agencies like the FDA, SEC and others would NEVER let any public company get away with false statements involving their name. Are you kidding me?! That's not even taking into consideration that it would be illegal for company insiders and management to purchase hundreds of thousands of shares (as they did just one week ago) only to announce false information that might cause share prices to jump.

One poster in cyberspace (whose identity and background we could not confirm) may have put it best when he posted this about CVM's most infamous basher: "After your ridiculous comments yesterday you have lost all credibility. You look like an idiot child trying to fit into adult conversation. Go away, you are an emotional wreck."

While keeping an eye on the current Cel Sci situation, it's as good a time as any to remind ourselves that these games are played by those who may not have our best interests at heart, let alone the interests of the companies which they attack, or the patients whom may someday benefit greatly from the advancement of the drugs under development.

In order to remain grounded through the volatility, we must keep in mind that this is all about someone making money (whether that someone is a hedge fund, an analyst, a company, a small investor or you and me).  Remember that many of the products and treatments that are under development - the very same ones that basher sites take extra time and energy to discredit - are ultimately potentially life saving medicaments.

As one of my blog's readers recently said to me via email, "If I lose all of my money in an investment, but the company in which I invested develops a drug that saves lives, then it was ultimately a good investment."

Rest assured - There are forces trying to make sure that you lose all of your money in these investments, but I think it's a great thing when the small investor can benefit along with a company developing a ground breaking product - and I think that cancer immunotherapy treatments truly are groundbreaking.

As for the attacks on these companies; It's one thing to have an opinion that the treatments won't make it to market for whatever reason - and it's fine to express those opinions, but it's a whole different ballgame to misrepresent facts and attack a company for reasons of personal financial gain at the expense of the little guy.

In VFC's House, that's called unethical.

However, these attacks - mostly likely led by short sellers who want to make money on the way down and then buy low so that they can make money on the way up - are a part of the game and the small investor needs to take advantage of it by buying on the dips, not by being scared into selling their shares.

That's where DD becomes ever so important.  In order to have the confidence to hold through the storm, an investor must be confident in his or reasons for investing; if you haven't done your DD and seen the facts for yourself, and then processed those facts, you won't have the personal fortitude to add more shares as your stock is dropping.

That being said, the current CVM fiasco is reminiscent of Mr. Feuerstein's attack on Antigenics (AGEN) a couple of months ago.  The attack on Antigenics came via streaming video as a scripted on-camera message read by an obviously nervous and sweat drenched Mr. Feuerstein- who attempted to use crayons to make his point.

Crayons???!!!

Seriously.

The attack of Antigenics and that company's kidney cancer vaccine Oncophage, was full of misrepresented details and elements. Even worse, some of the most important facts were simply skipped completely.  Additionally, there was no mention of the vaccine adjuvant QS-21 that the company has developed and is currently being tested in over 20 clinical stage vaccines.  An even worse slap to the face of truth was a rant in which Mr. Feuerstein claimed to "know" Dendreon (NASDAQ:DNDN). 

Ha! 

Feuerstein and Cramer were dead wrong about Dendreon every step of the way.  It's truly a classless act and a very poor attempt to rewrite history. I can pick a broken guitar with the heel of my right foot better than Mr. Feuerstein picked Dendreon; or any number of growing biotech multi-baggers, for that matter.

We can't get them all right, but if you get it wrong, at least own up to it. 

Stock investing is about being right more often than being wrong - not to re-write history when it doesn't go your way.  Worse yet, to pretend we're all dumb enough to play along. Stop kidding yourself, will ya? This time everyone is paying very close attention and taking fantastic notes.

Yes. It looks like the small cap biotech investor is finally starting to realize that when the attacks come, you have to take them for what they're truly worth and invest accordingly.  These shorting attacks are old and tired. We all knew it was only a matter of time before people just stopped listening.

Both Cel Sci and Antigenics are loaded with life saving potential.  Sometimes you've just got to look past the fear mongering to see it.

Disclosure:  Proudly long AGEN and CVM.

Vinny Cassano also authors the popular stock investing blog VFC's Stock House and is a respected contributor at Seeking Alpha.

 




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