After about the worst two months I can remember, KAL is providing an oasis in a huge desert of poorly performing stocks.
In fact, since Monday’s edition on the patent for a colon cancer treatment, the stock has now run from $1.04 to$1.38- net return so far this week of 32.5%. Thank God we finally got one going our way.
Developments this week include the patent on a colon cancer treatment- not previously built into the business model, peer recognition on the company’s developing therapy Antiprimod for the treatment of the incurable Multiple Myeloma, and peer recognition for its bio-defense technologies.
It took 1.5 million shares of volume to clean out the excess supply over Monday and Tuesday, and the stock now seems to be moving up the chart with little resistance.
This chart is quite compelling. I have included a kind of reverse fibonacci retracement. Over the last few days, the stock has now retraced 61.8% of its Oct-Nov decline, suggesting it is ready to take a breather.
However, the stock now has momentum in a good market, and could continue higher. If you are wondering what to do if you don’t own it and want to be on board, here’s a thought- Decide how much of your capital you want to allocate for the stock, and invest 25% right now. Then hope for a pullback. $1.24 would be the next level to look for the second 25%. If the stock continues higher, at least you have a position. Sooner or later it will quiet down, and you will be able to pick it up when it is quiet and no one wants it. It’s just question of price.
If you picked the stock up below $1.10 this week, and were in it just for a short term trade, this might be a good oppportunity to lock in some profts. You could sell part or all.
Loyal readers would be well served to not write off the OTC Journal. We are due for a whole bunch of wins like this.
Comments and questions are welcome. It would be nice to get some positive feedback after the well earned drubbing I have taken over the past two months.
You’ve got that one right !!!!
Editor: One in a row. Let’s hope it’s the beginning of a trend.
I’m long term, holding for a few years to see what happens. I think if it goes back to 1, I’ll buy more
Editor: I don’t believe we are going to see $1- but $1.25 would be a good level at this time. For now, I believe you are on the right track for a big score. Watch biotech become a 2006 bubble.
GOod to see this moving! I am a bit surprised that it had so much overhead to clear out. Over the last 3 days we have traded around 2 million shares. Good luck….Mike
Editor: Volume in microcaps has been so anemic for so long that fund managers who have invested in these companies have been unable to get out. They have to sell to make their bonuses. Amazing how much volume it took to move this one. Seems to have cleared out the short term thinkers, which positions the stock for higher levels as developments arise.
you are right this has not been a very good year for otc – hopefully your bonus is not tied to performance. yet you seem to be very confident on KAL . just one question how long after the patent will KAL begin trial phases good luck this coming year – you have taken quite a beating these last few months
Editor: Admittedly so. On KAL- Antiprimod for Leukemia should go into Phase III this year. Anamyacin, which is grabbing a lot of a attention right now because it treats the untreatable Multiple Myeloma, will begin Phase I. Remember, these both have Orphan Drug status and are used for relapse patients- these are the most fast track FDA Approvals you can get. The colon cancer treatment patent was new to me, and a surprise. Some of the bioterriorism products they are working on with the DOD will also make progress in ’06. Also- look for the company to acquire other technologies.
In answer to your other question, the better the stocks do the more money we make. I can’t tell you how much we have lost on paper since Sept 1, but it is painful.
liked the looks what I have read about the stock. I bought in this morning, unfortunatly had I waited a bit I could have shaved a nickle per share. but no matter, anyone with potential on a colon cancer drug has my attention. and I’ll invest in that. My mom just beat colon cancer and news of new drugs to fight it is great. I plan to sit on the stock for the duration to see how it turns out. even if it only ever reaches the likes of pfizer. It would be a good return on the small investment.
Editor: For traders, my stop loss would be around $1.20- if you are long term, it won’t matter. If small biotech companies become next year’s bubble, you will do very well in this stock.