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Cel-Sci (AMEX: CVM) Cashing Up and Moving On To Phase III

There's no stopping this one. I guess when you've got it, you've got it. CVM hit the $2 mark this morning, bringing the total return on this idea introduced on June 13th at $.36 to 455%. Not a 10 bagger yet, but we're only four months into the coverage.

Sooner or later this stock has to cool off a bit, but every threshold that I've suggested profit taking has led to higher levels, so let's stop trying to guess where the top is and focus on the fundamentals.

Some might say the company has been lucky- getting this much attention and trading this much volume has allowed the company to re load the bank account in a major way.

CEO Geert Kirsten will tell you that after 20 years of raising money, sweating, and grinding through bad markets and early stage clinical trials, he finally got lucky. 

This week CVM is offloading another 30 million shares at $1.40- self underwritten- no commissions to be paid. They have done the filing and I'm certain the shares have either been issued or will be shortly- meaning the company will have another $30 million at its disposal. Add that to the $20 million they raised. I think they'll have raised $50 million, but it might only be $30 million. I'll check the filings in a week, and see how it all came out. So, you think they are going to use this money to go after a cure for Bird Flu- The H1N1 virus?

I think not. This company is really all about Multikine- the cancer therapy that enhances the ability of other cancer therapies. CVM has been developing this therapy enhancer for twenty years, and it holds the promise of a potential Billion dollar winner. 

After 20 years, Geert Kirsten knows how to leverage fame and volume into the next stage of enhancement for Multikine. This capital will allow the company to fast track the start of Phase III clinical trials, and early results for a cancer therapy could bring in the big boys- the Mercks, and  Pfizers- the big pharma companies who have become massive marketing arms for the discoveries of smaller and more creative companies. I have confirmed the company is headed to Phase III for Multikine in short order.

I suspect that after the smoke clears there will be about 200 million shares I&O in CVM. So, at $2, it's sporting a $400 million valuation without a Phase III trial underway at present.

However, there's likely to be $40 to $60 million in the bank, and plenty of upside with Multikine.

I could see it going to $1.50 as easily as $3 to $5. Might be a little ahead of itself, but in the best position the company has ever been in its history.

A big pullback and some quieter trading would provide the opportunity long term investors should be looking for.As far as the short term, it's just a rocket until it runs out of fuel, and I can't say where that will be.

I wouldn't open a new position now, but I wouldn't give up too many shares if you're holding them.
 

Tommorow

I'm working on an update on "All Things China" for tomorrow's edition, so stand by. Lots of other good things happening to some fallen angels out of the past as well.

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