News Details – Smallcapnetwork
Trading Alert: Get This Biotech Before A Breakout.
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February 2, 2024

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PDT

Dow Jones 10919.21 +35.86 1:02 pm PST, February 10, 2006  NASDAQ 2261.88 +6.01 For info, visit access.smallcapnetwork.com S & P 500 1267.00 +3.22 Change your subscription status here Russell 2000 717.17 -0.99 VOLUME 06: ISSUE 12  Trading Alert: Get This Biotech Before A Breakout. We first alerted the readership to a unique biotech company, CEL-SCI (AMEX: CVM), in November 2002 at 21 cents. The shares of this proprietary cancer/disease therapeutics company are exceptional traders and during our coverage period readers had several significant and very profitable trading opportunities. The shares hit $1.80 by the fall of 2003 for a return in excess of 750 percent--an exceptional winner. With the shares now in the 50-cent range, we strongly feel that the best appreciation for CEL-SCI shares is yet to come. CEL-SCI is currently at the threshold of a major period of growth that could well result in the share price meeting or exceeding those previous stellar runs over the next 6-12 months. It can and has happened before. For example: on March 3, 1995 a little known biotech company named Imclone System (NASDAQ: IMCL) closed at $0.19 per share (a split adjusted price of $0.38 per share). Over the course of the next seven years this biotechnology company began an incredible run that may never be equaled.  Imclone's stock reached a pinnacle on December 5th, 2001 when the stock closed at $146.66 per share (split adjusted $73.83 per share). We strongly suggest risk-oriented traders as well as long-term investors accumulate CVM shares at these depressed levels. The blue circles in our weekly chart represent the some of the multiple trading opportunities the shares of CVM have afforded investors in the past. Over the last year, the shares have been range-bound between 50-60 cents--nowhere near where they should be, in our opinion given the progress of the company in the last 18 months. Buying shares when they appear lethargic or are seemingly being ignored has worked very well for our readers in the past. Our previous successful coverage of CEL-SCI is a prime example: buy the stock when no one seems to care and sell some on the spikes that typically show up, usually with no warning. We see significant support at the 45-cent level should the shares dip slightly from here. The difference now from our previous trading coverage is that we feel that long-term investors should also take a good and hard look at the shares. As it moves into the Phase 3 space, news and developments should give the shares added and extended horsepower. These activities, as they play out, should fundamentally and profoundly move the Company from the formative/developmental stage to the  developmental/commercialization stage. As that process occurs, we think that there will be significant growth in market cap and, of course, the share price. Reasons to own CEL-SCI: Chart technical picture appears very constructive and attractive for accumulation at these undervalued levels. Phase 3 Clinical Trial for head and neck cancer granted by the highly regarded Canadian Biologic and Genetic Therapies Directorate for its patented MultiKine Cancer Drug. Multikine is not tumor specific; therefore it may also be applicable in many other solid tumors. Company confident that FDA approval--CEL-SCI is well along in the regulatory process-- for a Phase 3 Multikine study will ultimately be granted. In December agreement signed with National Institute of Allergy and Infectious Diseases (NIAID) to test CEL-1000 peptide as a potential treatment/preventative agent against the HN51 virus (avian flu). CEL-1000 has shown protection in animals against malaria, herpes and cancer Market capitalization of under $40 million--great potential for expansion of market cap as it is at a significant discount to other comparable biotech companies. Patents secured on both Multikine and CEL-1000. Over 2005 many papers, presentations and peer reviewed articles delineating the Company's therapies and efficacies to potential partners and licensees. As we said in a previous article: Owning shares of CEL-SCI is similar to owning a long- term option on a revolutionary new cancer drug. The bonus is that this option never expires.  Unlike traditional big Pharma companies, which focus on late-stage or end of life drugs and therapies, CEL-SCI's safe and non-toxic immune-based technologies are developed to effectively treat early stage disease and lower the potential for deadly recurrences.  As CEL-SCI CEO Geert Kersten concluded recently: "Our ultimate goal is to add Multikine to the first line cancer therapy to make the first treatment more successful. The bottom line is simple: If the cancer does not recur, you will survive". Here's a review of the core technologies for those who missed our previous coverage: Multikine is a combination, or "cocktail", of natural human interleukin-2 (IL-2) and certain lymphokines and cytokines (regulators of the immune system). In human testing Multikine has been shown to induce both an anti-cancer immune response and to significantly increase the susceptibility of the tumor cells to radiation therapy. As an immune modulator, Multikine is an amazing drug. It is ostensibly a biologic comprised of cytokines that stimulate the human immune system to overcome tumor tolerance. The pending Phase 3 trial will test the hypothesis that Multikine treatment administered prior to the current standard therapy for head and neck cancer patients (surgical resection of the tumor and involved lymph nodes followed by radiotherapy or radiotherapy and concurrent chemotherapy) will enhance the local/regional control of the disease, reduce the rate of disease progression and extend the time of progression free survival in patients with advanced oral squamous cell carcinoma. CEL-1000 is the leading product to come from CEL-SCI's patented Ligand Epitope Antigen Presentation System (LEAPS) technology platform. Any disease for which antigenic epitope sequences have been identified, such as infectious diseases, cancer, autoimmune diseases, allergic asthma and allergy, and select CNS diseases (e.g., Alzheimer's) are potential candidates for this technology platform. The CEL-1000 peptide has shown protection in animals against malaria, herpes, viral encephalitis and cancer. We believe that the potential for CEL-SCI is enormous. Risk-oriented investors, whether they've played CEL-SCI before or not, should be well rewarded as the story unfolds through 2006.     We Value Your Feedback Got comments, questions or suggestions? Send 'em on over: Editor@smallcapnetwork.com If you wish to send a written request or inquiry, please send it to our physical address: TGR Group, LLC 4653 Carmel Mtn Rd Suite 308 #402  San Diego, CA 92130 CDW Sales up. Shorts beware? Nice move in the shares of hardware/software seller CDW Corp, which we profiled Feb 1 at $56. Company announced January 2006 monthly sales figures were up almost 9 percent from January 2005. Popped the shares almost $2 to $57.70 Thursday am. The company announces sales figures monthly and February figures are to come out March 9th. Nice visibility for shareholders. Company is long lots of cash; no debt and business growth appears to be defying the naysayers. Don't forget too that there is a large short position; 7 percent or north of 4.5 million shares. Could boost the price nicely if the shorts get skitzy, which is looking more and more likely.   Verizon popping, wirelessly. Shares of wireless behemoth Verizon weathered the recent market declines nicely and moved up to well north of $32, Friday to extend the run that began Wednesday late in the session. We issued a Trading Alert on the shares on January 28th and it looks like the wireless wave is underway and should propel the shares higher over the next 6-12 months. Seems a sector investors should be in for the long haul. Growth, R&D and expanded enterprise capital expenditures in 2006 should shine favorably on both the sector and the Company. Lest y'all forget we like the prospects for giant AT&T too, which has moved from our call January 28th at $25.89 to $27.30, Friday. Nice dividends (5 percent) on both as well.   SC Digest: Live and Nationwide Your humble scribe was interviewed the other day by Wallst.net regarding the SmallCap Digest, our thoughts on Clearly Canadian and other topics of interest. I have to admit, it was kind of fun to spread the word and use another medium to reach the readers, old and new. Likely we'll do some more of that kind of thing in the future as we consistently increase our relevance to our readers--our most important component. Here's the link if you have a couple of minutes: http://wallst.net/superstock/CCBEF/ccbef2.html. I have a great face for audio streaming...   The Old Cash/Sidelines Argument Some guy on CNBC Friday morning spouting --once again--about how much cash there is on the sidelines. Of the $650 billion apparently that was invested in savings vehicles over the last while only $30 billion went into equity funds. Apparently, the rest of this largesse is going to stomp into the market at some indeterminate point in the future and rock us up 20 percent this year, he said. The fact that most investors are either invested in other global markets or just aren't risk-oriented seemed to confuse him. Needless to say, he couldn't come up with the catalyst that would accomplish this. I have been hearing this argument for decades. It's a crock, frankly. Markets move when markets move, mainly on earnings and growth and against a constructive economic background. Money arrives in the market over time and when the time is right, not simply as a large lump that arrives willy-nilly. Herding cats would be a better use of your time rather than sitting around waiting for that wall of money to arrive. Subscribe Information is power and timely information is profitable. Become informed and profit from SmallCapDigest Profiles and Trading Alerts by becoming a Preferred Member today. 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