Anavex Life Sciences Corp (AVXL)

[falconer66a]

A Year-End AVXL Value Analysis

For those of us who held 12-month AVXL positions, we had these numbers. My Schwab account says that a year ago AVXL closed at $5.12. Today, ending 2021, it closed at $17.33.

For the year (2021), that’s a gain of 3.38x, or a 338% gain.

If in coming years the annual gains will be, say, 300% (3x), starting with an AVXL holding worth $1000 on Monday, the first trading day of 2022, here’s a table of position values for the coming five years:

......Date.....Position Value...$ Gain from 2021
Jan 1, 2022......$1,000................0
Jan 1, 2023......$3,000.............$2,000
Jan 1, 2024......$9,000.............$8,000
Jan 1, 2025.....$27,000...........$26,000
Jan 1, 2026.....$81.000...........$80,000

Was the holding of an Anavex equity position for the year 2021 rewarding? With a value increase of 338% it surely was.

Will there be equivalent increases in coming years? That will be for each equity owner to observe. The science of the Anavex molecules can certainly allow equal or greater gains. Successfully treating or preventing the CNS diseases being targeted by the company will increase the annual multipliers significantly. By 2026 add one or two more digits.

With my very moderate AVXL position, I've got a few thousand shares with an average cost basis of $2.67, I have a 548% gain, over about five years. A year from today, I don't expect a share of AVXL will be traded at either $17.33, today's closing price, or even twice that. Much larger; all dependent on the clinical trial results in 2022, and the prospects of FDA approvals. Was pleased watching my AVXL value gains in 2021. They will be much greater in 2022.