Anavex Life Sciences Corp (AVXL)

[jimmy667]

Biogen has been very active lately. There MO of late has been to do a partnership and take a 10% stock stake. The last one was with SAGE they paid $106 for the newly issued shares when SAGE was trading at $86. BTW Wall Street poo pooed that excellent deal and wash traded to down to $68 over the next week or so while the Absurd Wall Street Analysts publicly downgraded SAGE. I pointed it out at the time that that was proof Wall Street say one thing and sells good news so they can accumulate lower. I bought the low $70s and sold in the mid $90s just a few weeks later on the cue that Wall Street started upgrading SAGE signaling as it were that Wall Street had finished accumulating on the cheap and were ready to distribute the now inflated shares to the public.
Before that they did a partnership with a 10% stock deal with Denali for the ALZ drug. I am not invested in that one.
So I would not be surprised to see a partnership with Anavex with a 10% stock stake. Anavex has the 10 million preferred which would be a non voting way to do it.
But if that happens be prepared for AVXL stock to sell off for a few weeks before it goes up.
Denali did not sell off, it when up, which tells me Wall Street had enough DNLI shares and wanted to sell rather than accumulate.
Denali did an IPO Anavex did not. So AVXL will likely sell off hard while Wall Street accumulates THEN rise sharply when they are finished accumulating.

If one does not believe this is how it works I can only say look up the date of the BIIB/SAGE deal and see my posts the next day then look at the SAGE stock chart and Analyst upgrade/downgrades after that.