Anavex Life Sciences Corp (AVXL)

[Gator328]

It is a penny stock (.75 pre-split). For now.

Let's wait and judge the company once the trial results are out. If the drug fails it's lights out for Anavex because there won't be enough runway to advance the A371 trials and investors will be hard-pressed to bet on a similar type of drug.

But if the drug works, Anavex will become a multibillion dollar company overnight. I doubt it'll hit the $10-$20B valuation many here expect, though that would be fun. More likely it'll be valued somewhere in the $5-$10B range which is still going to result in considerable price appreciation.

The stock drop doesn't bother me so long as it hasn't been accompanied by bad trial data. Right now everyone's placing bets with zero ability to predict the future. There will be some winners and some losers. Stock price is meaningless for the time being although I do feel that it's partly undervalued due to poor management decisions from Day 1.