Anavex Life Sciences Corp (AVXL)

[crescentmotor]

I guess you are one of those people who believe in a fully rational market for all stocks at all times.

Well, your guess is both uninformed and wrong. In this age, daily trading values are influenced by a myriad of factors including powerful hedge funds, programmed algorithms, and predominant machine trading. Accordingly, there is no logic to believing in efficient market theory at least on a daily or short-term basis. But over time, the market does set a value for stocks that reflects perceived value. Companies that have announced successful trials in AD have typically been valued in the $20 billion range (before regulatory approval) and there are multiple recent precedents reflecting that enterprise value. You may believe that the AVXL AD trial was successful and the share price should be somewhere between $100 to $500 per share pre approval. But you have a real practical problem to deal with. Your problem is that no one in the world would buy your shares right now, as I type this, at a price exceeding $3.69/share. Companies that conclude Phase III clinical trials and lose 75% of their value are perceived by the marketplace to have failed trials. There is no getting around it--reality bites.