Keep an eye on Anavex Life Sciences (AVXL).
While the stock recently pulled back, use the weakness as opportunity, we noted on August 5, 2021. Shortly after, the stock would run from about $18 to a current price of $19.42. Near-term, we’d like to see AVXL break from consolidation and potentially test prior highs near $30.
For one, the company just reported that the “predictive biomarker of response established with SIGMAR1 mRNA expression correlates significantly with responses in primary and secondary clinical efficacy endpoints from the proof-of-concept randomized, double-blind, placebo-controlled Phase 2 trial that randomized 132 patients with Parkinson’s disease dementia equally to target doses of 30mg, 50mg ANAVEX®2-73 or placebo, respectively,” as noted in a company press release.
Two, the company just reported cash and cash equivalents of $157.6 million on June 30, 2021, an increase of over $128 million compared to $29.2 million from September 30, 2020. A net loss of $10.2 million, or $0.14 per share for the quarter, compared to net loss of $6.5 million, or $0.11 per share in comparative quarter of fiscal 2020. In addition, it recorded research and development expenses of $9.0 million for the quarter, as compared to $6.7 million for comparable quarter of fiscal 2020.
Three, the AVXL stock is technically oversold on RSI, MACD, and Williams’ %R. We’d use weakness as opportunity here.