Anavex Life Sciences Corp (AVXL)

[Mygolfballs]

AVXL Miracle Drug With A Toxic Financing Set For A Severe Decline In Price by
Edward Vranic, CFA

Apr. 26, 2016 10:00 AM ETAnavex Life Sciences Corp. (AVXL)152 Comments
Summary

Anavex Life Sciences rose 16% on Monday due to feel-good news stories on the impact of its early-stage Alzheimer's drug.
AVXL has gotten into a vulture financing deal of up to $50 million with Lincoln Park Capital, a fund that has been synonymous with poor stock performance.
LPC has nine other deals in the past year similar in nature to AVXL. Eight of those companies have declined in share price, averaging a 38% loss.
If AVXL truly has compelling science, it should be able to attract real institutional investment. Institutions own less than 3% of the stock.
I expect AVXL to decline to $4 or less by the end of the year.
A compelling story came out of Australia for Anavex Life Sciences Corp. (NASDAQ:AVXL), which caused the stock to move up 16% on Monday. In addition to one Alzheimer's patient regaining the ability to paint, another was able to play the piano once again after being treated with ANAVEX™ 2-73. These feel-good stories resonate with investors like myself who like to invest in speculative biotech companies.

Unfortunately, these types of exciting speculative investments have burned me in the past. What I have learned about investing in these early stage biotech and healthcare companies is it's not so much about the science -

https://seekingalpha.com/article/3967979-anavex-life-sciences-miracle-drug-toxic-financing-set-severe-decline-price

Seems like the author is warning investors?
Grim