Why ANX ($1.06 - 1.45) will bounce back QUICKLY to $2 IMO: The price drop yesterday was totally irrational. ANX deserves a MIMINUM $2.50 share price.
-ANX has $1.59 per share cash, no debt and a very low cash burn rate.
-The market opportunity for the the company's other drugs (ANX188 and ANX544) is much larger.
-With a $30 MM market cap and $42 MM cash, the market is assigning ZERO value to these other drugs.
- The CEO stated in the conference call that ANX has many options going forward (partnerships) and ANX will look like a much different company in 2012.
-ANX was trading in the $10 range in 2009 and is now in MUCH better shape with $42 million cash than it was then.
-ANX is trading at a huge discount to other biotechs with late stage Phase 2 drugs.
YMI, ZLCS and AEZS have well over $100 MM marker caps.
In short, the prospects for ANX's major drug candidates remain intact. Todays selloff based on rejection of a minor "niche" drug, Exelbine, lowpresents a compelling buying opportunity.
$2 short term target.
