*With this kind of volume financing risk is out the door; PIPE funds will be lining out the door when this breaks over $1 to give them money. Rodman, Roth, Lazard or Ladenburg. You name it. Then comes the research coverage.
*The overhang that existed is gone, the last resistance on level 2 is at 75 cents, there's been a legacy order at 75 cents through Hudson on Level 2. After that the stock should go to $1.05
*NPV of the $65 million in milestones is $20 million or $1.00 Per Share.
*Even at $1.20 a share the stock is still cheap. A $1.20 stock price would give OVIT a $24 million market cap. That's nothing for an oncology company; GENSPERA a direct peer is at the same stage and their market cap is over QUADRUPLE that of OVIT at $62 million. They are actually right down the street from another. TICKER GNSZ.ob (While OVIT has the better CEO hands down.)
*We are buying cheap call options essentially; the CEO's last start-up ILEX Oncology was purchase for $26 a share from Genzyme. The CEO bought 185,000 shraes over the past 18-months; that's unheard of, these CEO's never buy their own stock.
*Their lead drug Cordycepin is for the treatment of TDT-Positive Leukemias- the drug has already shown to have an edge if the biomarkers are present. That's a $350 million market multiplied times 8 years of orphan drug status. Weis could get this drug approved in 2 1/2 years.
* The TUMOR drug is supposed to be a blockbuster; this is the kind of drug a huge biotech will want to partner with. $1 Billion plus potential and this is the drug everyone will want.
*Nobody will think twice about buying shares in a PIPE deal if the stock is a $2-5 dollars.
* There's no reason to sell at this point; the upside potential is at least 3x from here conservatively, that's where they last raised $6.8 million in the end of 2007.
*Don't forget the upcoming milestones that will come non-dilutively from ALERE HOLDINGS on the NYSE. Ticker: ALR
* Hold on to your shares; your wife will think you.