Okay, Here’s Our First Name for the Reverse Stock Split, Watch List. We’ll Venture to Have 10 Names Added to Watch List Within 30 Days.
This could be EPIC. It will take a lot of effort to sort the wheat from the chaff, primarily because there are so many names to choose from. There are 464 listed companies on the Nasdaq Stock Market trading under $1.00 and thus subject to possible delisting (or reverse).
We’ll create a table of the performance of each name we highlight. We’ll either look pure genius, or embarrassed to hell a year from now. We feel wildly optimistic though. Highly confident as we used to say back in the day, at Drexel Burnham.
The theory in a paragraph or two, is the prospects of doing a reverse split has pounded the share price of many of these companies, to ridiculous levels of valuation starting the day they reveal they received a deficiency notice from Nasdaq.
Investors run from these companies, not for fundamental reasons, and not for valuation reasons. But merely because the possibility of the company doing a reverse. If an investor does like the company, they often sell, with the notion of buying back AFTER the reverse. That spells lower prices. That often also spells the potential for once-in-a-life-time bargains.
Then after the split, there are often so few shares outstanding, that if the company announces the news that bullish investors were hoping for or forecasting in the first place, it should literally scream higher. One is because the valuation is so low (a subjective opinion of course) AND two because there are so few shares outstanding. These are potential powder kegs of investor excitement. And that spells higher prices. Much higher.
After the 1-for-15 reverse split, the share count dropped from 29,757,823 shares, to only 1,983,855 shares. As in OMG, there’s no stock around.
There, we explained it in two paragraphs. No rocket science here. This is a simple investing technique. Not sure if anyone has perfected it yet (perfect means right 51% of the time and quickly selling your mistakes early) but we’re willing to give it a shot!
We envision in a year or two, there will be dozens of stocks, which will have gone from single digits to double digits or more, gaining ten-fold in the process. At that point (only after) we believe broad investor opinion – (come-to-Jesus moment), will be that heavy research on post reverse split stocks is warranted. And that a boatload of money has and will continue to be made investing in reverse split stocks.
As we mentioned in our last newsletter, LQR House (LQR), then Polished (POL) and then Zivo Bioscience (ZIVO), all screamed massively higher POST reverse split.
We will have a full report on GeoVax a client, on Friday. We love their prospects and if they put out the news we are looking for, it could be an easy ten-bagger. We know the company inside and out, we just need a day, to adjust the numbers for the reverse split. David Dodd, the CEO has been there, done that.
He is undisputedly one of the top executives in the biotech industry, with billions of dollars in gains under his belt. He’s a businessman, not a scientist, not that there’s anything wrong with a scientist running a publicly traded company. We’re just more comfortable with a seasoned businessman at the helm!
SHORT TERM CHART
MARKET CAP CHART
In 1995 Dodd left Wyeth Pharmaceuticals (it was later acquired by Pfizer (PFE) for $58 billion), to join Solvay Pharmaceuticals as CEO (from 1995 to 2000). During his 5 year tenure there Solvay’s enterprise value increased from $100 million to $2.5 billion, and ultimately to $6.2 billion in 2006. When it was acquired by Abbott Labs (ABT).
After Solvay, he became President of publicly traded Serologicals (SERO) during a management shake-up in 2000. The share price of SERO had fallen from $30 to near $3.00 during 1999, in the years before his arrival.
Within six years it rose to $31.55, with the market cap rising from $85 million to $1.4 billion – after it was acquired by Millipore.
Total combined gains of $2.5 and $1.5 billion add up to $3.9 billion, Not bad for eleven years work, we think you’ll agree!
As of 9-30-2023 GeoVax had near $10 million in cash, versus a market cap of near $7 million! This is the exactly type of situation we will be looking for in additional Watch List additions.
Original Write-Up. Adding Geovax (GOVX) to 2024 Biotech Watch List.
Reports from Robert LeBoyer at Noble Capital. Jeffrey Kraws and Karen Goldfarb at Crystal Research. Jason Kolbert at Dawson James Securities. Vernon Bernardino at H.C. Wainwright. Various price targets $4.00 – $8.00. Post reverse that would equate to $60 – $120 – uh, ya baby!*
Wall Street Research Reports. Research Report Archive
GeoVax Labs, Inc. is a clinical-stage biotechnology company developing novel therapies and vaccines for solid tumor cancers and many of the world’s most threatening infectious diseases. The company’s lead program in oncology is a novel oncolytic solid tumor gene-directed therapy, Gedeptin®, presently in a multicenter Phase 1/2 clinical trial for advanced head and neck cancers. GeoVax’s lead infectious disease candidate is GEO-CM04S1, a next-generation COVID-19 vaccine targeting high-risk immunocompromised patient populations. Currently in three Phase 2 clinical trials, GEO-CM04S1 is being evaluated as a primary vaccine for immunocompromised patients such as those suffering from hematologic cancers and other patient populations for whom the current authorized COVID-19 vaccines are insufficient, and as a booster vaccine in patients with chronic lymphocytic leukemia (CLL). In addition, GEO-CM04S1 is in a Phase 2 clinical trial evaluating the vaccine as a more robust, durable COVID-19 booster among healthy patients who previously received the mRNA vaccines. GeoVax has a leadership team who have driven significant value creation across multiple life science companies over the past several decades. For more information, visit our website: www.geovax.com.
This release contains forward-looking statements regarding GeoVax’s business plans. The words “believe,” “look forward to,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “could,” “target,” “potential,” “is likely,” “will,” “expect” and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Actual results may differ materially from those included in these statements due to a variety of factors, including whether: GeoVax is able to obtain acceptable results from ongoing or future clinical trials of its investigational products, GeoVax’s immuno-oncology products and preventative vaccines can provoke the desired responses, and those products or vaccines can be used effectively, GeoVax’s viral vector technology adequately amplifies immune responses to cancer antigens, GeoVax can develop and manufacture its immuno-oncology products and preventative vaccines with the desired characteristics in a timely manner, GeoVax’s immuno-oncology products and preventative vaccines will be safe for human use, GeoVax’s vaccines will effectively prevent targeted infections in humans, GeoVax’s immuno-oncology products and preventative vaccines will receive regulatory approvals necessary to be licensed and marketed, GeoVax raises required capital to complete development, there is development of competitive products that may be more effective or easier to use than GeoVax’s products, GeoVax will be able to enter into favorable manufacturing and distribution agreements, and other factors, over which GeoVax has no control.
Further information on our risk factors is contained in our periodic reports on Form 10-Q and Form 10-K that we have filed and will file with the SEC. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise. GOVX is a client of Institutional Analyst which receives a monthly retainer of five-thousand dollars for ongoing progress reporting and news coverage.
*We are awaiting updated price targets.