Ayala Pharmaceuticals Inc (ADXS)

[Meishairwin]

Low valuation for biotechs with outstanding Ph2 results is not at all unusual, fbg. Pick any 10 biotechs in that situation and I'll guarantee all of them are way under what they would be worth with an FDA approval. While ADXS market cap may be at the lower end of the distribution of such discounts, that would be because of its out-of-the-mainstream technology, which because of the nature of listeria and mechanism of action, has always had significant doubters in the science community since the beginning, as you know from the history of Yvonne Peterson.

However, these conditions are what make ADXS an incredible "buy" if we are right. It's unfortunate that many investors are underwater, but that's the nature of biotech investing. It's all but impossible to buy at the secular bottom. And, being down 50%-75% before vindication is not unusual or to be fretted....if there's reason to continue to believe in the science and the CEO's ability to raise capital at every well-priced opportunity.

That's why I'm invested in ADXS: I think Dan is a genius fund raiser and strategist and the science continues to look good.