Tuesday, 28 March 2017

CBIO scored huge, APOP is next

On February 13th we called Catalyst Biosciences (CBIO) "The Next Reverse Split-Fueled Runner" just like KBS Fashion (KBSF), DryShips Inc. (DRYS), EnteroMedics Inc. (ETRM), Signal Genetics, Inc. (SGNL), Interpace Diagnostics Group, Inc. (IDXG), Real Goods Solar, Inc. (RGSE), Globus Maritime Limited (GLBS) and SAExploration Holdings, Inc. (SAEX) have done. It took a little while and we were bagholding for a bit but today's move of over 200% shows that we were right. We recommend taking profits on CBIO and have moved onto our next play. If you like our picks make sure to follow our blog by clicking the follow button on the top of the left hand panel.

It's an ideal time to get into Cellect Biotechnology Ltd. (APOP). It has pulled back to the mid $8's today after running heavily yesterday on excellent news, its first successful cancer patient stem cell transplant:

"TEL AVIV, Israel, March 27, 2017 (GLOBE NEWSWIRE) -- Cellect Biotechnology Ltd. (APOP) (APOP), a developer of stem cell selection technology, announced today that the first stem cell transplant procedure has been successfully performed using its ApoGraft™ technology in the Company’s Phase I/II clinical trial in a blood cancer patient.  

Up to 50 percent of stem cell transplant procedures, such as bone marrow transplants, result in life-threatening rejection disease, known as Graft-versus-Host-Disease (GvHD). Cellect’s ApoGraft™ technology is aiming to turn stem cell transplants into a simple, safe and cost effective process, reducing the associated severe side effects, such as rejection and many other risks.

Dr. Shai Yarkoni, Cellect’s CEO said, “After 15 years of research, this is the first time we have used our technology on a cancer patient suffering from life-threatening conditions. It is a first good step on a road that we hope will lead to stem cell based regenerative medicine becoming a safe commodity treatment at every hospital in the world.”

Based on the successful transplantation results, the independent Data and Safety Monitoring Board (DSMB) approved the enrollment of 2 additional patients for ApoGraft™ treatment to complete the first study cohort as planned."

This news is huge because usually these type of things take place in a test tube. APOP is actually in a Ph 1/2 setting and has had success and is trading at less than a $50 million market cap. The company has only 5.38 million ADS outstanding (1 ADS is worth 20 shares listed on the Tel Aviv exchange) and is well cashed up with no need to finance any time soon with $8 million in working capital and a low burn rate:




Not only does APOP have a good chance to run after today's pullback, traders can get a leverage opportunity because APOP has warrants trading publicly under the symbol APOPW. The warrants have an exercise price of $7.50 and expire in 2021. They trade around $2.50 right now, so they are pretty cheap considering there is more than four years left on their expiry.

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