Investing to Wealth

Adventrx Pharmaceuticals, Inc. (ANX) was a penny stock rocket in December and January rising from 10 cents up to an intraday high of 52.5 cents.   I do not follow ANX on a regular basis, so I looked at headlines and didn’t see any one piece of news that drove the stock to those heights.   But, the fact remains, it did.  The IR guys for ANX continue to work overtime putting out PR’s.   There is no lack of news.

Perhaps the most important news for me involves Carl Icahn.  Say what  you will about the man (usually negative), but he delivers!  One of his representatives now sits on the board and Carl has put his money where his mouth is with a 2.25% stake in ANX.  I will be interested to see how his involvement, directly or indirectly, plays out.  I like it.  Someone needs to shake management up and Carl (and his minions) specialize in that.

ANX is a chart play for me….financials are “good” for a pharma company.  Lots of cash in the bank (most recent capital raise was very successful for the company) and no debt.   The efficacy and market potential for their drug candidates are better left for those analysts who specialize in pharma.  What I have read looks promising, but “promising” doesn’t “feed the bulldog”.  Their past FDA dealings have been checkered at best, but the company is staying the course and if ICAHN feels they are a good investment, who am I to argue?

Here is the chart with my annotations:

ANX is one more bad FDA report from being a 10 cent stock again.  However, the company feels strongly that they can address the FDA issues in their Refusal to File Letter and get back on track.  I am inclined to believe that they can get things straightened out….. Carl will get ‘em straightened out!

As always, I am a short-term trader.  The price action is showing no trend, but the indicators seem to be showing ANX gathering strength.  Penny stocks are, by their very nature, volatile.   I will look for the indicators to continue to strengthen before I pull the trigger on ANX.  It is sitting at a tipping point.  Good news and this one will rocket…bad news plummet.

ANX will be a good trade for the brave.

Trade like you mean it!

Jeffrey Dean, Editor