Adventrx Pharmaceuticals, Inc. (AMEX: ANX) has been in constant contact with the FDA over the New Drug Application for Exelbine (vinorelbine injectable emulsion) – a treatment for non-small cell lung cancer. The stock price has reacted heavily off a recent twelve month target price announcement by Vista Partners for a whopping $7.50, which would be a 594% increase from ANX current stock price.
Principal Analyst of Vista, Ross Silver stated “ANX currently trades at a negative enterprise value with its market cap currently being less than its cash balance. The Company’s cash value per share was $1.59 as reported at the end of the second quarter.”
Shares short have decreased by almost 36% from 2.25M to 1.44M and that is not a bad ratio at all with 58.49M shares outstanding. We won’t be able to play into a huge short squeeze, but at least we know that it is becoming riskier to short this stock at these prices.
· ANX is really just one big obstacle away from taking a chunk out of that huge gap it left behind after its enormous tank from the $2 range. This stock needs to break through the $1.21-4 resistance area for a possible gap fill attempt.
· The RSI is perfect coming out of oversold territory and pointed up into the buy zone at 43.
· The MACD had a golden cross a few trading days ago and the positive line continues to move towards zero.
· The ADX is very close to having a cross as well, which shows a very positive stock trend!
The Bottom Line
ANX has tanked hard with so many other big board bio-stocks and it looks like it is trying to make a comeback! I have to tell you that $7.50 sounds great, but I’d be grinning ear to ear with a gap fill to the $2 range… Make sure to at least continue watching this stock and keep your ear to the ground for any developments with the FDA.
Disclosure: No Position
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