Thursday, January 14, 2010

GNVC

I intended this as a weekend post, but the stock is running, so here it goes:

On August 30, 2005 I first wrote up NNVC at 10c a share and have been pounding the table on this stock ever since.  Since then, I have highlighted other biotechnology companies with potential, as it is the one sector that I believe is immune from macroeconomic cycles.  We all want to live long and healthy lives and will pay almost any price to do so.

Today I am introducing GenVec  (GNVC) as another biotechnology opportunity in the making.  Here is my highest and best reason to be interested in this stock:


GNVC Weekly


But there are a lot charts that look like this one.  What is so special about GNVC?

(1) They are having late-stage (Phase III) success with their lead treatment (TNFerade) for pancreatic cancer, showing a 25% reduction in the risk of death compared to standard care;

(2) Their proprietary technology for vaccine and gene delivery has applications for mulitple therapeutic applications;

(3) GNVC's market cap is only about $180MM and with no debt, seems way undervalued for the therapeutic markets they are addressing;

(4) TNFerade has shown promise in multiple other tumor types including head and neck, esophageal, melanoma and ovarian cancers;

(5) GNVC's management has shown outstanding competence in managing finances, using grant revenue to subsidize much of its research and development to date. 

For a more comprehensive analysis of GenVec, here are a few links to more detailed (but just as positive) write-ups:

Merriman Curhan Ford, October 2009

CEO commenting on pending results, January 2010 

Roth Capital targeting $4 share price, January 2010 



I sent this out to my subscriber list earlier and since the stock seems to be running, wanted to get it out to everyone else.  My EW targets are $3 on the Daily chart and $4 on the Weekly chart. 

A

8 comments:

sventen said...

How is GS looking on the daily model? Still on a sell signal?

Allan said...

yes

Anonymous said...

ABT, MCK, $BTK . . . worth looking at to see context. Drugs are pricey.

T said...

GNVC....looks like a good one. Thanks Allan.
I'm reluctant to jump on it now, but maybe on a pullback in the next week or two could get lucky.

.....or maybe a 1/2 position now....and the other half with a pullback....

grady742 said...

Hi Allan,
I just found your blog.
I really like your trend following approach.
I hope to learn more.
Thanks,
grady

Anonymous said...

l'attrait du marché boursier


Shanghai index just below its 50-MAvg before tonight's open

3-day wknd in USA coming up, INTC was not strong afterhours

Anonymous said...

Allan- Gnvc similar story to CVM what is the diff with regards to the management style or experience level of it's corporate officers?

Mike said...

for some reason...this link seems appropriate to this thread:

http://www.youtube.com/watch?v=xn_kNeorDSk

-Mike