|Penny Biotechs Now Set To Run|
|Monday, 04 April 2011 10:30|
These two penny stocks are TapImmune Inc. (OTC:TPIV) and Northwest Biotherapeutics, Inc. (OTC:NWBO).
TapImmune is a biotechnology company specializing in the development of therapeutics and vaccines in the areas of oncology and infectious disease and their work with some of the leading doctors at the Mayo Clinic (they have research and licensing agreements in place there) caught my attention because they were only one of several organizations that have been signing up to work with these guys since new management took over and started pushing the pipeline very nicely in the last 12 months. While their cancer technology is elegantly impressive and set to move into human clinical trials (after some recent meetings with the FDA we are anticipating that announcement in the days ahead), my sources and research tell us that many of the original SIGA and CBLI investors are looking even more excitedly at the company's MVA-TAP technology-- described as a prophylactic vaccine adjuvant for the protection against Smallpox and has applications as an adjuvant against numerous infectious diseases. We are anticipating some important news about that "game changing" Smallpox technology as well. We are told shares could go much higher on that news because there are so many people excited that this could be developing into an attractive bio-defense play which could see funding and research from government sources.
Already TapImmune's partners include: Aeras Global TB Vaccine Foundation, Crucell N.V, Mayo Clinic, National Institute of Allergy and Infectious Diseases, National Institutes of Health, The U.S. Department of Health and Human Services, The University of British Columbia, WuXi AppTec, Inc. (formerly AppTec Laboratory Services, Inc.) and WuXi PharmaTech (Cayman) Inc. I reached out to management about the possibility of an interview and they told me that they will be willing to speak more freely after they release some news. That tells me, something is cooking here. This stock only has around 21 million shares in the float in total and it should return to previous $1+/share levels if it breaks some minor resistance at $.50. Even higher on any of the good news items.
Same thing can be said about Northwest Biotherapeutics, and perhaps to an even greater extent. That stock is ready to move much higher on multiple news items which should play out in the next couple of weeks- if not sooner.
As I explained over the weekend, I'm anticipating some nice moves here because these stocks have had their prices pushed significantly lower due to financings that created "overhang." In other words, some of the individuals and funds that financed the companies and received stock (paper) for those financings had been been selling a majority of their shares just to reduce their initial risk in the investment- while at the same time holding on to the convertable warrants which were issued as part of the deal as their long term as investment in the firms. This type of action happens all the time in biotech and you'll hear me talking about "overhang" and how you may want to stay away from stocks that have "too much overhang" from time to time.
Disclosure: I have been long both of these stocks for some time