Tuesday, March 22, 2011

Readers Respond: What Does the Silence From Generex and Cytosorbents Mean?


"Readers Respond" is a forum where VFC interacts with the readers of VFC's Stock House.  Readers can leave comments on posted material at either of the blog sites, through Seeking Alpha or via email, vfc@vfcsstockhouse.com.  All stock opinions, tips and questions are welcomed, whether agreeable with VFC's opinions or not.  Thanks for the comments, because without interaction - this wouldn't be fun.

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A comment from Vito posted to VFC's NEW Stock House

Why are CTSO and GNBT so quiet? Surely something has to be going on. Do you follow DYAI? If so, do you have an opinion? They were mentioned in Seeking Alpha a while back. Thnx, Vito

VFC's Take:  The thing is with the biotech sector, a lot of speculation accompanies the game.  We can only speculate as to why there is silence. 

The calm before the storm?  Maybe.

Companies at work trying to release data in a format that looks good enough to keep investors on board, although not quite good enough to garner and FDA approval?  Possibly.

Quite simply, it could just be that there's nothing to report right now, and if that's the case, it's fine.

What we don't want is fluff PRs that really don't say anything.

Unfortunately, Cel-Sci has become the master of the fluff PR of late, producing PR after PR about site approvals for the Multikine Phase III trial, but nothing in terms of actual enrollment.

I don't like fluff PRs because companies that tend to do that might not react well to real news because of the 'boy who cried wolf' factor.

On the other hand, the lack of news and interest can allow a stock to trade under the radar for a while, offering investors a good chance to pick up cheap(er) shares.

In the case of the both GNBT and CTSO, I like the risk/reward at, or just below, the current levels to add a few shares here and there.

By the close of the second quarter, however, we should have heard significant news - bad or good - from both of these companies.

I'll get back to you on DYAI.

Disclosure:  Long GNBT, CTSO.

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