ENZ REC-FYI-AXXel-
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November 29th, 1999
AXXel Knutson's Flash Recommendation:
Enzo Biochem?a biochemical company with earnings, zip debt, patents and Phase 1 clinical testing of the Company's genetic antisense product for the treatment of HIV-infected individuals
Using, AXXel Knutson's
VTAR?
["Volume Trade Analysis Research"?]
"Manage the risk?the profits will take care of themselves"
"In this business, being right is not as important as making money?consistently, and one of primary tenets of the quest is the avoidance of the 'obvious risk'"
From AXXel Knutson,
EVP & Director, Institutional Equity Research
www.tradingweapon.com
a premium investor service of
Platinum Equities, Inc.
Member NASD & SIPC
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Email: tradingweapon@aol.com
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Chart is courtesy of www.iqc.com
We are recommending the immediate purchase of the common stock of ENZO Biochem, Inc. [ENZ-25 3/8] as one of the very few profitable, debt-free bio-tech firms.
Beyond that, we think that ENZO has a potential of a very significant breakthrough in the treatment of HIV through its technology. Please review the following statement and then go to the ENZO web site to become familiar with their technology.
"We have approached the development of a human immunodeficiency virus type 1 (HIV-1) therapeutic product by producing immune cells stably resistant to HIV-1. Promonocytic CD4+ cells (U937) were made resistant to HIV-1 by the introduction of a DNA construct (pNDU1A,B,C) that contained three independent antisense sequences directed against two functional regions, transactivation response and tat/rev, of the HIV-1 target. Each sequence was incorporated intothe transcribed region of a U1 snRNA gene to generate U1/HIV antisense RNA. Stably transfected cells expressed all three U1/HIV antisense transcripts, and these transcripts accumulated in the nucleus. These cells were subjected to two successive challenges with HIV-1 (BAL strain). The surviving cells showed normal growth characteristics and have retained their CD4+ phenotype. In situ hybridization assays showed that essentially all of the surviving cells produced U1/HIV antisense RNA. No detectable p24 antigen was observed, no syncytium formation was observed, and
PCR-amplified HIV gag sequences were not detected. Rechallenge with HIV-1 (IIIB strain) similarly yielded no infection at a relatively high multiplicity of infection. As a further demonstration that the antisense RNA directed against HIV-1 was functioning in these transfected immune cells, Tat-activated expression of chloramphenicol acetyltransferase was shown to be specifically inhibited in cells expressing Tat and transactivation response region antisense sequences."
The success is in CULTURE?not in humans?please note:
"We have successfully achieved stable resistance to HIV in human immune cells in culture. Independent
multitargeting was used to combat the variability and mutability of the virus. This approach also provided
independent expression of each of the target sequences from an independent and specific promoter, taking
advantage of high rates of synthesis. The choice of U1 as an antisense carrier provided structural stability
and nuclear localization. This successful approach in cell culture is being developed as means of achieving
a high level of stable resistance in patient cells for the purpose of developing an ex vivo therapy for treating
HIV infections.
However?.July 13, 1998 - Enzo Biochem, Inc. (ASE:ENZ), announced today that it has
initiated Phase I human clinical trials of HGTV 43, a genetic antisense-based therapeutic product designed
to treat HIV-1 infected individuals. This product has been developed to protect human immune cells against infection by a broad spectrum of strains of HIV-1 including its mutational variants. The tests are being conducted at the University of California, San Francisco.
Additionally, human clinical trial involving immune modulation therapy of Hepatitis B patients. This product, in terms of potential, wold in our opinion be a rational enough rationale for the purchase of ENZ
The cash flows come from the following:
Enzo Diagnostics' primary market focus is infectious disease diagnostics and genetic abnormality
detection. The company has developed an integrated portfolio of proprietary technologies, each affording a
variety of diagnostic applications. Of particular importance is the patented technology for DNA labeled with special nonradioactive signaling molecules. This pioneer technology has made possible the development of cohesive systems based on DNA for early diagnosis. These BioProbe© Systems are similar in sensitivity to radioactive probes, yet have a longer shelf life and possess less health risk and disposal problems than do the radioactive ones. Enzo's work in this area has led to commercially viable product capabilities in what were previously esoteric laboratory tests. Enzo Diagnostics markets a broad range of products based on this BioProbe©technology.
Enzo's nonradioactive tests use DNA probes to identify viruses and other infectious disease pathogens,
and cancer markets?
and from:
Enzo Clinical Labs provides innovative high-quality service primarily to physicians as well as to hospitals,
clinics, nursing homes and other clinical laboratories. The laboratory performs a complete range of clinical
procedures from traditional, routine screening to advanced technical esoteric tests, aiding in the prompt and
accurate diagnosis of disease. Its state-of-the-art, automated, computer-driven facility has enabled Enzo
Clinical Labs to improve productivity and client service. Results can often be transmitted directly to the
physician in as few as two hours.
VTAR? Position:
With a solid base in the high teens and low 20's and a recent spike to about $37, we think that ENZ has the potential to attack the high of $37 and we believe that the test will be successful. We have a price objective of about 10-15 points in excess of that target and if reached would result in about an 80-90% potential return which meets our objectives.
The scientific aspects of the company are difficult for the layman to easily understand, however, the research conducted by ENZ is not "flash in the pan" and has been going on for years?many years and when it comes to the technology that ENZ drives, we think no company has a better chance for a significant breakthrough in both HIV and Hepatitis B.
Purchase is strongly recommended. Go to-------… enzo.com
Axxel Knutson, Director of Research
www.tradingweapon.com
A premium investor service of Platinum Equities, Inc.
New York City
DISCLAIMER
Investment decisions should not be based solely on our proprietary indicators, which are intended as an adjunct to your additional analysis. Please accept these comments as market commentary. We do not intend these comments to replace detailed fundamental analysis. We urge you to accomplish that additional research via your contacts on the Internet or through a trusted financial advisor. If you want additional information, we will give it upon your request.
This report has been prepared from original sources and company data we believe to be reliable, but we make no representation as to its accuracy or completeness. Additional information is available upon request. This report is published solely for information purposes. It is not to be construed either as an offer to buy or sell or the solicitation of an offer to buy or sell any security or the provision of or an offer to provide investment services in any state where such an offer, solicitation or provision would be illegal. Any opinions expressed herein are statements of our judgment on this date and are subject to change without notice and we may not update that change to you. Platinum Equities, Inc., its affiliates and subsidiaries and/or their officers and employees may from time to time acquire, hold, or sell a position in the securities mentioned herein.
The author of this report, Axxel Knutson, does not invest in any of the securities mentioned in this report nor does his immediate family unless such securities are included in mutual funds or index options. Equity investment involves risk of capital loss. We recommend that your portfolio be diversified by company size, industry group, geographic region and by currency.
It should not be assumed that future selections will be profitable or will equal the performance of past selections. Securities listed herein illustrate selections made using proprietary indicators know as VTAR? [Volume Trade Analysis Research?]. These names, VTAR?, Trading Engine?, tradingengine.com?, Volume Trade Analysis Research?, are servicemarks/trademarks of AXXel Knutson and are given under revocable license to Platinum Equities, Inc. ¸ 1999, All rights reserved, Axxel Knutson and Platinum Equities, Inc. Diversify. Got it?
All recommendations and commentary are directed toward sophisticated, aggressive traders who have significant experience trading in a volatile market and who possess the financial resources to risk a loss of some or all of their invested funds. Commissions, and if you use margin, interest charges will lessen any return on investment. VTAR [Volume Trade Analysis Research] centers around the proprietary analysis of trading volume, price, general fundamental analysis, beta concerns, group rotation and detailed analysis of risk as it relates to entry and exit points in highly liquid stocks. Control the risk?the profits will take care of themselves? AXXel Knutson |
