Anavex Life Sciences Corp (AVXL)

[Gator328]

Good point. The caveat I’ll add though is that the stock has increased nearly 20x without any fundamental changes other than perception of the odds of success. We’re still a zero-revenue, zero-product startup that is one failed trial away from going back to $1.25. On the other hand, we’re one positive trial away from exponential gains.

Just the other day, there was a stock that performed well in P2 trials but failed its P3. The stock price dropped from $80 to $10 overnight. So, we aren’t out of the woods yet — in fact, I’d argue we are in the thickest part of the woods because to date we really haven’t received the thorough scrutiny of an FDA review.

The stock has been a money maker to those who have traded in and out, like yourself. Others, however, are still assuming a lot of risk by not selling. The trade off, of course, is that they will enjoy long-term capital gain benefits on the greatest amount of price appreciation vs. those who sold and reset the clock.

Thanks as always for your insight over the years. Stay safe and enjoy the holidays!