WINDSOR, ON / ACCESSWIRE / August 24, 2015 / The Wealthy Biotech Trader (or "WBT"), an investment newsletter focused on showing everyday investors new opportunities in rapidly growing, little-known biotech, pharma, medical device and general healthcare stocks making news and subsequent market moves, would like to discuss some recent explosions in share price of two biotech stocks and two biotech Company's which have pending news which could serve as catalysts to potentially move their stocks.
The latest news out of China is muted growth prospects; if you consider 7% GDP growth muted you probably don't really have a grasp on what is really going on. To put things in perspective, the last time the US had a 7%+ GDP growth rate was 27 years ago in 1988 on the tail-end of President Regan's robust trickle down economy. The reality is that China will most likely keep growing at the feverish pace it has for the past several decades, provided there are no secret or surprises lurking in the People's Bank of China or the Chinese Ministry of Finance.
Nevertheless, the WBT feels we are in a brief correction. The Broader market (the S&P 500) has been on a constant, uninturupted upward march for four years now. It is an understatement to say that a 20% correction at this point would be healthy, which could put firm support on the S&P 500 between 1710–1720. The 1720 in the range also happens to by the 38% Fibonacci retracement level for the 4 year run the market has been on.
The most defensive sectors always fare relatively well in these times, and Healthcare is our darling. The iShares US Healthcare (NYSE: IYH) is still up 1.7% for the year while the SPDR S&P 500 (NYSE: SPY) is down almost -7.7%. In our opinion, Healthcare/ Pharmaceuticals/ Medical Devices and Biotech is where the money if flowing to from the now forsaken gold/ natural resource/ oil sectors. We are also of the opinion that this 90's-esque biotech market is just getting started. The iShares US Healthcare index (NYSE: IYH) today bounced fairly aggressive off of its 20% correction point and could mark the beginning of a lucrative entry point into the more interesting stocks dotting the sector's landscape.
What we've done is essentially found two stocks that have made incredible runs, which were triggered by a news catalyst, and researched two other stocks that have a similar chance to explode upon potentially positive news. It's important to know that this can work against the stock as well, but if you do your homework you can limit your risk.
Aquinox Pharmaceuticals Inc. (NASDAQ: AQXP) has recently had quite the ride to say the least after releasing midstage trial results for AQX-1125, its only clinical-stage drug candidate, for bladder pain syndrome/interstitial cystitis. At the beginning of August the shares of AQXP were trading for roughly $1.60, after the news the stock shot to over $55.00, a 3,000% return, something not seen since the days in the late 90's when I was calling my broker from the pay phone in high school to buy Nasdaq bubble stocks. These days there are plenty of opportunities like this, and it looks like the party is just getting started.
One of the Companies we've mentioned quite a bit this year is Propanc Health Group (OTC: PPCH). Propanc is a cancer (oncology) focused biotech developing potential pharmaceuticals for the treatment of colorectal and pancreatic cancer. PPCH is popular amongst retail traders as some made great money with this ticker in the first half of this year when we saw gains of 13,000%, seeing the stock run from $0.001 to $0.134. Obviously your timing would had to have been perfect to enter and exit the trade at those prices, but it's hard to ignore the fact that the potential was there to turn $8,000 into $1 Million+.
Propanc (OTC: PPCH) is a name we want readers to keep a close eye on as they are currently completing their pre-clinical animal studies which will then be used to apply to the FDA to start clinical trials through a new drug application (NDA). The Company has recently released positive news regarding tumor shrinkage in mice which largely went unnoticed because of the slow trading in the summer months. As the animal studies unfold, the Company should continually release the news as they mentioned they would in their recent press releases. The Company mentioned in a recent PR that they are moving to the full-scale studies from the initial pilot study; The Wealthy Biotech Trader feels that any positive efficacy (how well the drug actually works) news could significantly move the stock past the recent 52 week highs.
If Propanc's drug (PRP) gets into clinical trials (within 1 year), and then commercialized (2 years total potentially, provided everything goes as planned) the market for pancreatic and colorectal cancer is enormous. There are no real effective medications to help in the fight of pancreatic cancer, and if you've ever known someone to have this aggressive killer, you know its devastating effects. The current front-line medication for pancreatic cancer patients, on average, extends life by only 1-2 months - not that impressive - we need alternatives.
Another recent "super nova" stock is Anthera Pharmaceuticals (NASDAQ: ANTH). ANTH has ran from $1.60 to $11.60 on decent news, but the Company has a few upcoming catalysts for their Lupus drug and Cystic Fibrosis complication drug. These announcements may come in the New Year and could potentially have a positive (or negative) effect the stock.
One other name worth mentioning is OncoSec Medical Incorporated (NASDAQ: ONCS). ONCS is in the hot field of immunotherapy, or treatments which unleash the human body's ability to fight cancer on its own. Wall Street is very keen on these immune-oncology stocks as they're having some great initial successes. OncoSec Medical Inc. is a biopharmaceutical company developing its investigational ImmunoPulse intratumoral cancer immunotherapy. Clinical studies of ImmunoPulse have demonstrated preliminary evidence of anti-tumor activity in the treatment of various skin cancers. ONCS is studying four different cancer indications for their therapies which are all in various stage of phase II. Phase II is very important as it determines a drug's effectiveness, a determination which also becomes instantly reflected in the stock. From our experience, biotech stocks move the most based on this phase II data and is the phase we watch most closely - so put this ticker on your watch list.
The Wealthy Biotech Trader is always researching new trade ideas which have the makings for large market moves. Traders are urged to follow our parent outlet, The Wealthy Venture Capitalist on social media (see below) to stay apprised. We are an anti-email media outlet, and as such will only be releasing our reports/ updates/ news through Twitter and Facebook as well as newswire.
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