The bulls are all over biotech stocks with some notable movers include Axim Biotechnologies (NASDAQ:AXIM), CoLucid Pharmaceuticals (NASDAQ:CLCD), Corbus Pharmaceuticals (NASDAQ:CRBP), Exelixis(NASDAQ:EXEL), and Tesaro (NASDAQ:TSRO).
This is a special time of year, especially when the stock market is ripping all-time highs on a daily basis and everyone is trading in front of expected tax cuts, deregulation, and monster fiscal stimulus.
It seems like everything is popping off the charts. Now, it’s time to look for the “deals”… where is the value in the small and micro-cap stuff… where is the light float with strong growth and technical beauty?
OBMP: A cancer play that is forming sturdy basing support at just pennies per shares after tumbling last Spring. The float is small, and the growth prospects are huge. We think this one is going to see a lot of attention here as the year closes, so we want to get out in front of that action right now!
OncBioMune Pharmaceuticals, Inc. (OTCMKTS:OBMP) is a clinical stage biopharmaceutical company that develops cancer immunotherapy products. The company has proprietary rights to a breast and prostate patent vaccine; and a process for the growth of cancer cells and targeted chemotherapies. Its lead product is ProscaVax that is in the planning stage of a Phase II clinical trial for the treatment of prostate cancer. The company also has a portfolio of targeted therapies.
In short, the Company’s proprietary vaccine technology is designed to stimulate the immune system to selectively attack cancer cells without harm to the patient.
As noted above, the big play right now is the flagship prostate cancer treatment headed into Phase II testing. That’s an advanced R&D asset moving toward a $7.1 Billion market. We don’t generally see something like this in a stock trading for $0.11/share. Well, never actually. We took a quick poll around the room. We’ve never seen this.
And certainly not something attached to a tiny float (under 20 million shares). Frankly, that has “explosion” written all over it. For comparison, most biotechs we see with realistic phase II assets heading into even $1 billion markets are going to be pricing in the midpoint of the outcome by this stage of development. For example, if this drug shows efficacy and makes it through the last couple steps to hit the market, this stock will be at a few bucks/share with top line revenue assumptions going into orbit.
But now, it is pricing in truly nothing…ever. With an asset this far through the pipeline, you will normally see the stock start to approximate the partial value of full passage. But, for some reason (probably, like most OTC stocks, just not being discovered), this stock isn’t pricing any of that in. So, what’s the secret sauce? Exposure!
That’s why we like this stock so much: The company is starting to get more exposure (Online Media Group just picked up coverage and we see a buzz building on stock message boards). That’s good for current shareholders – the light float and undervaluation mean that exposure should reprice it significantly higher – and it’s good for you because you’re learning about it right now, ahead of the move! In addition, the IP portfolio is also building out right now: OBMP just announced that the European Patent Office has approved the Company’s patent application number 12701292.0 protecting ProscaVax as a PSA (prostate specific antigen) cancer vaccine (See Full Press Release Here). The patent is broad in scope covering an array of therapeutic cancer vaccine compositions built upon OncBioMune’s protein and antigen platform technology. The patent protects OncBioMune’s PSA cancer vaccine in 38 participating European Patent Organisation states.
That underscores the need for this stock to reprice higher to begin to account for the risk that it finds strong results in its phase II study: because the company is handling its business responsibly at this stage and protecting its rights to achieve full control of the market value of that pipeline as it progresses.
There are other key themes for the company as well, including a possible acquisition of a partner with a distribution network in Mexico and another Phase 1a/1b trial for PSA prostate cancer in California, funded by non-dilutive grant funding – rare and extremely advantageous.
So, please take a moment and conduct your own due diligence. Suffice it to say, our research suggests there is a possibly dramatic upside opportunity in place here right now.
We also love the chart: stock is a deep value/deep oversold play, with key support under construction and average daily volume rising steeply of late.
This is particularly important given the tight float (and under 20M shares). That combination can lead to a share supply squeeze higher. Don’t let this one get away from you!
OBMP (OncBioMune Pharmaceuticals, Inc. (OBMP)) a company that OncBioMune Pharmaceuticals, a clinical stage biopharmaceutical company, develops cancer immunotherapy products.
OBMP has proprietary rights to a breast and prostate patent vaccine; and a process for the growth of cancer cells and targeted chemotherapies.
OBMPs lead product is ProscaVax that is in the planning stage of a Phase II clinical trial for the treatment of prostate cancer.
OBMP also has a portfolio of targeted therapies. OncBioMune Pharmaceuticals is headquartered in Baton Rouge, Louisiana.
What You Need To Know:
- OBMP is in advanced R&D stages with an asset gearing up to attack the $7.1 Billion prostate cancer market, with other assets in the pipeline as well.
- OBMP just secured EU patent protection for its lead asset.
- OBMP has a tiny trading float of just 19.29M, which suggests the stock could launch higher on any additional influx of interest.
- OBMP is showing a clear surge in interest, with volume over the last couple weeks tracking 29% above its average levels.
- OBMP is coming off an RSI trough under 40, pointing to a massively oversold stock in a deep-undervaluation right now.
As always, conduct your own due diligence. There may be some skeletons in the closet that we might have missed.