Anavex Life Sciences Corp (AVXL)

[jimmy667]

Excellent ideas. I would urge caution and backtesting of the 2x and 3x sector ETFs and the BEAR 2X and 3X. I used the 2x bear financial sector ETF in the 08-09 rape and plunder of America's retirement investors. They did not work as advertised because I assume the mechanism of derivatives do not work well with extreme volitility
The derivatives can not be traded fast enough. Back study those 2x and 3xs and one will see that they all deteriorate over time bc of transaction costs and time value portion of the options they use for leverage. I do not use 3x and if I did would not hold overnight. They deteriorate quickly. The 2x are best held for very short term. Days or few weeks at most. The non leveraged may have less sizzle but perform better over time and do not suffer the same deterioration over time.
If one had suffiecient cash reserves and did not mind holding the cash one could short the long 2x3x bio ETF to get the sizzle and have the natural deterioration of the derivatives work in one's favor as well. I do not have nor would I want to hold cash reserves to cover short positions so I use the non leveraged bear ETFs. As I said I tried the leveraged ones in the financial rape of 2008 and they failed miserably.
I think your idea is fantastic but one should consider the option of shorting the long 2x etf or just using the non leveraged bear etf.
I favor picking a particularly fundamentally week bio to short as a hedge long AVXL. However I am not hedged AVXL except with cash as I am prepared to accumulate over the next several years averaging up and down as I feel AVXL is an excellent investment for a long term 10-15 years. In the unlikely event that there is some bad news that dives the price way down I will double down. I plan to double holdings over next several months and double again in 2017.
If one considers what will be the market cap of AVXL In 10 to 15 If successful one might be less apt to fret paper losses. 1999 Gilead traded with a 10 handle recently a 100 handle but split 2 for 1 five times over the years which puts each original share at $3200. AVXL is targeting a geometrically larger indication will AVXL be successful? Those probabilities are what I believe the market is under appreciating.
Also I agree 100% regarding being underexposed to the many near term catalysts for this company. A number of which have the potential to ignite a blue sky tornado appreciation in the stock price/market cap.
Good luck to all and thanks to the many great posters here I read all the posts and they are getting better with the exception of a few short clowns/trolls.