Rande....interesting little biotech play:
Take a look at the stock symbol AIMM. This thing just got destroyed this week because a drug they were developing in phase 3 for rheumatoid arthritis had too large a placebo response...that's the ONLY reason. Dropped from 3 1/2 to under 1. There was an institutional buyer in the market for about 200,000 shares of AIMM on Friday, and I took an initial speculative position at 13/16 and will be adding. My reasons are:
1. The arthritis drug was found to be safe and effective...just too large a placebo response at the present time.
2. The stock is owned by some very large, respected institutions who have a vested interest in doing whatever it takes to make sure the stock recovers. In the near-term, I think $1.50 is easy, and that's about a 50% return from today's close.
3. The company has a pile of cash and NO debt.
4. AIMM owns numerous patents that have value...add these to the book value.
6. AIMM still has SEVERAL clinical trials going on...trials that are EXTERNALLY FUNDED, NOT funded by AIMM. These include studies in type 1 diabetes and a trial in chronic organ transplant rejection. Organ transplant rejections is a VERY hot area right now...these results are due early next year.
7. Very importantly (and I think overlooked by most), AIMM has an exclusive agreement with Teva for applications of AIMM's proprietary technology. This agreement covers the development of an oral formulation of Copaxone, Teva's injectable drug for multiple sclerosis. AIMM WILL RECEIVE milestone payments and royalties upon approval.........
6. The market environment for biotechs/pharmaceuticals is scorching hot right now. There is alot of money going into the sector, from the market leaders down to the laggards, down to those with only a longshot. Portfolio managers are scouring the biotech market right now for any kind of
bargain, and some of that money will find its way into into AIMM.
Take a look at the AMLN chart. That's one of the reasons I am a buyer here. AIMM definitely has a future on its own, unless it gets scooped up by a larger company down the road. I have made killings in the past by investing in companies with this risk/reward profile. |
