Should You Buy This Hot Reddit Stock?
After GameStop's spectacular short squeeze, investors are now wondering if other heavily shorted stocks that are popular among contrarian Reddit investors, such as CEL-SCI.
As it turns out, discipline becomes paramount when the value of one's holdings goes up so high and so fast.
CEL-SCI is a development-stage biotech that is seeking to develop a novel immunotherapy treatment, Multikine, for head and neck cancer. Despite its noble goals, the company has its fair share of skeptics: Nearly 30% of its shares are shorted.
Multikine is CEL-SCI's only late-stage candidate. The experimental therapy is going through the final stages of phase 3 data collection and statistical analysis, with results expected any day. Multikine's phase 3 clinical trial has been going on for a decade, even though it was supposed to conclude in December 2015. The discrepancy between the actual and estimated trial completion time has caused CEL-SCI to become a contested stock.
All of this matters because large-cap biotechs can acquire development-stage competitors that successfully bring just one immuno-oncology therapy to market for more than $20 billion. CEL-SCI's market cap is just about $850 million, so the stock would without a doubt become a multi-bagger if it can bring Multikine past the finish line. Likewise, since it only has about $40.5 million in assets and negligible revenue, it will likely trade down to zero if Multikine disappoints.
fool.com/investing/2021/01/29/should-you-buy-these-3-hot-reddit-stocks-before-it/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
As it turns out, discipline becomes paramount when the value of one's holdings goes up so high and so fast.
CEL-SCI is a development-stage biotech that is seeking to develop a novel immunotherapy treatment, Multikine, for head and neck cancer. Despite its noble goals, the company has its fair share of skeptics: Nearly 30% of its shares are shorted.
Multikine is CEL-SCI's only late-stage candidate. The experimental therapy is going through the final stages of phase 3 data collection and statistical analysis, with results expected any day. Multikine's phase 3 clinical trial has been going on for a decade, even though it was supposed to conclude in December 2015. The discrepancy between the actual and estimated trial completion time has caused CEL-SCI to become a contested stock.
All of this matters because large-cap biotechs can acquire development-stage competitors that successfully bring just one immuno-oncology therapy to market for more than $20 billion. CEL-SCI's market cap is just about $850 million, so the stock would without a doubt become a multi-bagger if it can bring Multikine past the finish line. Likewise, since it only has about $40.5 million in assets and negligible revenue, it will likely trade down to zero if Multikine disappoints.
fool.com/investing/2021/01/29/should-you-buy-these-3-hot-reddit-stocks-before-it/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article
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