Anavex Life Sciences Corp (AVXL)

[Gator328]

This kept me up late last night and the more I think about it, the more sense it makes.

Anavex has a 4+ year runway's worth of cash, but does it really need that many years in the coffers? If there's a recession (looking more likely) and Anavex is dragged down with the general market, which it will be, why not use that cash for a stock repurchase or a one-time special cash dividend with a DRIP option?

If the drug works, we'll know within 18 months if not sooner making the 4 year runway somewhat moot. If the drug fails, it's unlikely most of us will stick around to see how A371 fares so who cares if they're able to run a P2B trial there?

The bet is on A273 working. If it does, the reduced float will only help create more demand for shares when word spreads if Anavex gets approval.