Anavex Life Sciences Corp (AVXL)

[BIOChecker4]

Given the Trump recession that market participants are now pricing into stocks, investors are increasingly concerned that Anavex (and other under-resourced small biotechs) will be unable to raise the substantial amounts of additional cash that will be needed in 2019 and beyond to fund multiple international clinical trials in multiple disease indications. The approximately $20 million that Anavex now has on hand ($23MM at 9/30 minus three months of 4Q spending) will simply not be enough to do the trick. The warning lights are now flashing and the stock reflects this. By mid-2019, short of a miraculous clinical trial outcome (extremely unlikely IMO), AVXL will be seen as a distressed stock and will trade accordingly. At the very least, Anavex will be raising massively dilutive capital at very low prices. Either way, the outlook should be deeply concerning to shareholders.