Aside from gold and silver stocks (which, as a group, are selling today at $1,700 gold at levels they were at several years ago with gold nearer $1,200 an ounce!) I don't think there's been any sector sold off over the last 12-18 months in a similarly wholesale fashion as much as biotech stocks, especially the more speculative ones.
That has opened up a lot of opportunities, including in today's new speculative recommendation Algernon Pharmaceuticals Inc. (AGN:CSE; AGNPF:OTCQB; AGN0:XFRA): Yesterday's close — CA$5.39/share, or US$4.10/share.
I have followed Algernon intermittently for quite some time; very intrigued by the story and thesis but — at least in this example — wary about catching a falling knife.
But it appears that the knife has finally hit the floor recently, and news out this morning has helped Algernon take a big step toward fulfilling its mission.
Vancouver, B.C.-based Algernon (Go here to learn more about the company for the moment; I'll have more color in the near future) is a clinical-stage drug development company seeking to further several drugs that were long ago approved.
What Algernon is doing is attempting to "repurpose" drugs that have been approved by various bodies in the past for one (or more) applications/maladies, but where it's been found that they could also be beneficial for others.
As I'll be explaining in a follow-up, there are three main drug candidates right now, all of which are likely to be in Phase 2 trials in 2023.
This morning's news was of positive results from the full data set of its Phase 2a Study evaluating NP-120 (“Ifenprodil”) for the potential treatment of idiopathic pulmonary fibrosis (“IPF”) and chronic cough.
Besides the attractiveness of Algernon's story, vision, etc. (check out this page at Streetwise Reports for a compilation of items on the company), one of the unique attributes of the company is that it has a mere 2.4 million shares or so outstanding.
Thus, a very small float and the potential to quickly add to its seeming break in recent days of an ugly downtrend. (And this speaks to the necessity as well of using a limit order when you move on this.)
Before the whole sector really imploded, Algernon had been preparing to get listed on the Nasdaq (it is on the OTCQB, so don't let your broker tell you you can't buy some if you have a U.S. account!) After a couple of recent raises, the company is in decent shape right now, with about CA$2.5 million on hand.
When broad market conditions and/or the company's own progress bolster the share price/visibility further, I expect final steps will be taken to ratify what I'm told is already a "provisional" acceptance of Algernon by the Nasdaq. Consider Algernon an Immediate Buy; the company is added to my roster of speculative-rated companies.
|Want to be the first to know about interesting Biotechnology / Pharmaceuticals investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter.||Subscribe|
Chris Temple Disclosures:
The National Investor is published and is e-mailed to subscribers from [email protected]. The Editor/Publisher, Christopher L. Temple may be personally addressed at this address, or at our physical address, which is: National Investor Publishing, P.O. Box 1257, Saint Augustine, FL 32085. The Internet web site can be accessed at https://nationalinvestor.com/. Subscription Rates: $275 for 1 year, $475 for two years for "full service" membership (twice-monthly newsletter, Special Reports and between-issues e-mail alerts and commentaries.) Trial Rate: $75 for a one-time, 3-month full-service trial. Current sample may be obtained upon request (for first-time inquirers ONLY.) The information contained herein is conscientiously compiled and is correct and accurate to the best of the Editor’s knowledge. Commentary, opinion, suggestions and recommendations are of a general nature that are collectively deemed to be of potential interest and value to readers/investors. Opinions that are expressed herein are subject to change without notice, though our best efforts will be made to convey such changed opinions to then-current paid subscribers. We take due care to properly represent and to transcribe accurately any quotes, attributions or comments of others. No opinions or recommendations can be guaranteed. The Editor may have positions in some securities discussed. Subscribers are encouraged to investigate any situation or recommendation further before investing. The Editor receives no undisclosed kickbacks, fees, commissions, gratuities, honoraria or other emoluments from any companies, brokers or vendors discussed herein in exchange for his recommendation of them. All rights reserved. Copying or redistributing this proprietary information by any means without prior written permission is prohibited. No Offers being made to sell securities: within the above context, we, in part, make suggestions to readers/investors regarding markets, sectors, stocks and other financial investments. These are to be deemed informational in purpose. None of the content of this newsletter is to be considered as an offer to sell or a solicitation of an offer to buy any security. Readers/investors should be aware that the securities, investments and/or strategies mentioned herein, if any, contain varying degrees of risk for loss of principal. Investors are advised to seek the counsel of a competent financial adviser or other professional for utilizing these or any other investment strategies or purchasing or selling any securities mentioned. Chris Temple is not registered with the United States Securities and Exchange Commission (the “SEC”): as a “broker-dealer” under the Exchange Act, as an “investment adviser” under the Investment Advisers Act of 1940, or in any other capacity. He is also not registered with any state securities commission or authority as a broker-dealer or investment advisor or in any other capacity.
Notice regarding forward-looking statements: certain statements and commentary in this publication may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 or other applicable laws in the U.S. or Canada. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of a particular company or industry to be materially different from what may be suggested herein. We caution readers/investors that any forward-looking statements made herein are not guarantees of any future performance, and that actual results may differ materially from those in forward-looking statements made herein.
Copyright issues or unintentional/inadvertent infringement: In compiling information for this publication the Editor regularly uses, quotes or mentions research, graphics content or other material of others, whether supplied directly or indirectly. Additionally he makes use of the vast amount of such information available on the Internet or in the public domain. Proper care is exercised to not improperly use information protected by copyright, to use information without prior permission, to use information or work intended for a specific audience or to use others' information or work of a proprietary nature that was not intended to be already publicly disseminated. If you believe that your work has been used or copied in such a manner as to represent a copyright infringement, please notify the Editor at the contact information above so that the situation can be promptly addressed and resolved.
1) Chris Temple: I, or members of my immediate household or family, own securities of the following companies discussed in the broadcast: Algernon Pharmaceuticals Inc. I personally am, or members of my immediate household or family are, paid by the following companies discussed in the broadcast: None. My company has a financial relationship with the following companies discussed in the broadcast: None. Chris Temple's and The National Investor disclosures are listed above.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Algernon Pharmaceuticals Inc.Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Algernon Pharmaceuticals Inc. Please click here for more information.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Algernon Pharmaceuticals Inc., a company mentioned in this article.