In mid-day trading on Tuesday, shares of Antigenics (AGEN) dropped over 15% and in keeping with my mode of accumulation by buying on the dips, I pulled the trigger and added at $1.66. The stock dropped lower after my trade, but as I've noted here before, AGEN is a gift while it's trading for sub-$2.
Today's drop, in my opinion, is a shakeout of 'weak hands', otherwise known as shareholders who become inclined to sell on any unexpected declines in share price, and reminds me of the contrary indicator that sent AGEN inexplicably lower last month before tripling in price shortly thereafter. If bad news were the cause of the drop I would expect more of a significant price decline than 15% on much higher volume.
Shareholders who have stop-loss orders in also fall victim to these shakeouts as their shares are gobbled up by share-hungry Big Boys.
Oncophage, Antigenics' kidney cancer vaccine, is another day closer to it's commercial launch in Russia, and hence a revenue stream, and GlaxoSmithKline (GSK) recently announced that they have commenced a Phase III trial for a potential malaria vaccine that utilizes Antigenics' QS-21 Stimulon component.
It's been all good news of late for this company and I still believe that the AGEN stock will ultimately be looked at as a steal for any price below $2.
Buy the dip.
Disclosure: VFC is long AGEN and has no position in GSK
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