To all: three high quality Stressgen posts appeared yesterday on stockhouse.ca. Here is the text of 2 posts by BioGold (Post IDs 6834580 and 6836054):
I know of no fundamental reason for the continued stock price erosion and may buy some more this afternoon.
Stressgen presented at Rodman and Renshaw this past Tuesday and I was there. I feel that I could write a book about Stressgen, but, in the interest of time,,,,,I'll just post a few thoughts, opinions, observations and speculations.
So, in my very humble opinion, I still feel Stressgen to be one of the most interesting and potentially rewarding biotech investments available and it is way undervalued.
HspE7 has now been dosed in over 400 patients and still no adverse side effects of any concern.(Fact)
Our biggest problem is the stock price because Stressgen NEEDS to raise some cash to get the Hepatitis B vaccine into the clinic, the figure I have heard to do this, and do it correctly, is $10Million US dollars.
It looks like there may be a sister drug to HspE7, I guess that to be original, they will name it HspE6. This will be totally Stressgen's drug and I hope to goodness that they have learned their lesson and will not partner this one with Roche.
It seems to me that the ideal situation for Stressgen would be to either merge with, or acquire, a US based company, or at least a company with NASDAQ listing, hopefully this company would have some cash and if they had an antigen, or two or three, that would be a good candidate for a CoVal fusion, it could be a perfect match! (I have no idea if such a company even exists, or which one it might be)
The pipeline for Stressgen could become very rich....... The products and potential for viruses is huge enough, but add to that CoVal fusions for bacterial and fungal infections, and then the biggie,,,,Cancer, it becomes mind boggling.
The manufacturing delay got us into this price rut, I am not sure what is going to pull us out of it, and I don't know when, but I feel that the drug is working way too well and is so safe, that something good has got to happen. Hopefully by the end of this year, only two months, but certainly by mid-2004.
If HspE7 is FDA approved, I believe Stressgen will be a ten-bagger from this point, or approx $1 billion US market cap. In the 2-3 years that it will take for that to happen, if pipeline products are also showing promise in the clinic, a Billion dollar cap will be conservative. I know that statement will seem ridiculous to some, at this point, but I am convinced that this is one of the best technologies in biotech today and it is being totally overlooked, this will not last forever, it can't.
Patience will be well rewarded.
As I said, just my thoughts and opinions.
B G
The second BioGold post:
I think (hope) that the chances of Stressgen selling equity at this level are very low, it COULD happen, but I don't think so, for the following reasons:
Managment is WELL AWARE that the share price is too low, they stated again this week that cash is sufficient into 2005, we are not in an emergency situation.
In a special edition of The Wall Street Transcript, printed especially for the R & R conference, the CFO, Donald Tarte, stated TWICE, that "we believe that our valuation will improve". (In reference to a question about the share price) That is a speculative comment and I asked him about it pointedly at the breakout session. He would not give me an answer, but I did distinctly get the feeling that there is something to support the statement,,,,,TWICE. I have no idea as to what he may have been referring,,,,,,,it could be the news at SENTAC, It could be some milestone payments, it could be some clarifaction on the PIII trials for RRP, it could be something that I can't even imagine...It could be "spin", I don't know for sure, but.....well, you all know how I feel about Stressgen.
I do know this much, the drug has been totally safe in over 400 patients, although the RRP PII results are on a small patient population and there is no control arm, the results are too strong for it to be a fluke, this drug is working! Safely! In the biotech business there is about a 90% FAILURE RATE, when a drug is successful, it will not go unnoticed forever. It is a platform technology, the opportunities are enormous. As Tarte said in the interview "....the broad applications of our heat shock protein technology, which we believe could be the Holy Grail of Immunotherapy."
At this point, I tend to agree with him.
B G |
