Anavex Life Sciences Corp (AVXL)

[Gator328]

Evercore is a legitimate investment bank. This was Anavex's first plate appearance in the big leagues. We can debate all day whether Missling got a hit or struck out -- but the reality is that something he said resonated with the audience for better or worse. There are two logical explanations for the price movement:

1. The renowned analyst Umer Raffat wasn't impressed with Dr. Missling's answers. Anavex was promptly shorted / people sold their positions, especially since it appears that the first set of data that will come out from the low-dose population is the least likely to show statistical significance.

2. Dr. Missing impressed the audience. Institutional investors wanted in, but not at current market prices. They have the means and ability to (temporarily) drop the price for a more attractive entry point, which is what we are seeing now. Once they've gotten they're fill, assuming the data releases are positive, the stock price can move back to its higher intrinsic value.

Most of these "investor conferences" are glorified excuses to play golf and take the family on vacation. That's why the stock price rarely moves when Dr. Missling attends them. Evercore is the first one that Anavex has been invited to that actually matters.

Which of the two scenarios is playing out remains to be seen, but based on today's price action -- which you also noted correctly -- I have a pretty good idea of what is happening behind the scenes as I imagine you do, too.

Have a great weekend, Tom!