Anavex Life Sciences Corp (AVXL)

[Gator328]

If the market valued AVXL at $10 it would be trading at $10, or close to it.

AVXL is a speculative startup pursuing a treatment for a disease with a high fail rate. AVXL has no revenue and increasing operating costs which means that it's going to need to continue to raise money to fund its trials. Its CEO has credentials on paper and it's assembled a respected advisory board but Dr. Missling lacks a track record of bringing a drug to market.

There is also a lot of competition from both large and small biotech companies, and the fact that any approved treatment has a limited lifespan before it goes generic.

AVXL may have way more upside than $10, but until AVXL proves its drug is going to generate revenue it's an expensive lotto ticket and the market is treating it as such.