Miami, FL – February 10, 2020 (EmergingGrowth.com NewsWire) — EmergingGrowth.com, a leading independent small cap media portal with an extensive history of providing unparalleled content for the Emerging Growth markets and companies, reports on CytoDyn, Inc. (OTCQB: CYDY).
- Blatant case of short and distort
- Research demonstrated an abysmal track record – short lived effect
- Text resorts to slanderous statements
- Upcoming catalysts make up for any deficiencies
The Bear Raid on CytoDyn (CYDY) was perfectly orchestrated. Reports on February 4th from long term CYDY investors said they had gotten calls from their brokers to borrow securities: a necessary first step in shorting. Short sellers likely started their selling on Monday at $1.50, a resistance point on the technical chart (the stock borrow rate, according to IBorrowDesk, was 25% and higher). In the days leading up to the conference call on February 6th, short sellers kept a lid on the price appreciation, and sold whatever they could to keep the price down.
Then, at 6am EST, the company came out with the extremely positive news of a new basket trial plan for cancer patients. Initiation of a cancer trial of this order of magnitude is unprecedented and could only be construed as positive news: the stock closed the day before at $1.48 and started upticking in pre-market to reach a high of $1.57. Culper research countered with a well-timed short report tweeted at 8:05 AM — spreading fear in the minds of longs that something was wrong going into the investor call. An immediate avalanche of selling started at the open of the 6th, suggesting that news of the basket trial was a bad thing. The stock closed down at 11.5% to $1.31.
Culper Research, if you can call it that, actually has a history of putting out 10 point hit pieces at the worst possible time. The reason is the complete and utter lack of fundamental analysis which we will get to later on. The company has no about us, no names on the report, no location of their operation, essentially no accountability. Investor’s need to watch out for mudslingers that are ghosts and DO NOT EXIST.
Let’s look at their past 4 deals.
It’s actually impressive with these results that any of their “clients” still have money left. They average close to a 40% LOSS on every position.
Ghost Company => No Accountability => No Credibility
There is no management, no contact number, just a twitter address linked to the website. The web presence was created on 6/18/19. The author is anonymous and trying to instill fear to make a buck but has one of the worst track records. So when you cannot be touched by the arms of the law they have no problem breaking it and committing slander toward a CEO trying to make a difference in cancer patients lives. Any investor that is swayed by these falsehoods should understand that Cluper Research has a blatant agenda of shorting and distorting.
The Culper Report has an agenda and it’s very transparent. They want to make you lose money. They use falsehoods to scare you into selling. They have twisted the truth into a fiction the likes of this planet has ever seen. They will reap a financial gain if they can convince investors to sell.
Rebuttal With Facts
The allegations of the Culper Report were so off the wall there really isn’t a way to address all the falsehoods regurgitated in the report. Here are some humorous ones.
They call Nader the Chief Promotions Officer
They call him a criminal because he started a business and shut it down
They say Circulating Tumor Cells (CTC’s) are not a surrogate endpoint yet its the 5th outcome listed on the clinical trial.
They don’t think he will get FDA approval immediately or BTD yet his drug is shrinking tumors in two months in indications that typically take 6 months to just see stabilization.
They attacked him for getting rid of Pestell who wanted to test for toxicity and delay things.
They made fun of Nader for doing a number of investor videos to keep shareholders informed.
They don’t believe hes working with a real Chinese drug company to solve the Coronavirus outbreak because they think he is looking at the wrong receptor.
They quote an oncologist who indicated that stage 4 patients needed a control arm.
Then they can’t even do math to project annual sales.
Do these allegations sound legitimate or a little far fetched?
Borrow Report Indicates Impending Pain for Shorts
The borrow report helps investors figure out the magnitude a stock has been shorted. The other thing that is published in the report is the cost of holding the stock short. As of 2/6/20 the interest rate charged to a shorted stock position soared to 78.4%. This high rate means that the short can eat up most of the profit if the stock moves sideways. In typical situations like this one, the short is forced to cover, and the reaction could be very violent to the upside as the covering begins. This chart demonstrates that the short just recently showed up to the party and in all likelihood has no idea what he is doing.
Upcoming Catalysts – Investor Update Call
Breakthrough Therapy Designation: The latest communication with the FDA includes the 4th patient which had a significant drop in the Circulating Tumor Cells (CTS’s). The 60 day update from the FDA is based on January 7th, 2020 or it could be reset to February 6, 2020 which puts the approval zone between March 7th through April 6th.
China Licensing Deal: (Coronavirus/Cancer) On the update call the CEO indicated that they are working very closely with their Chinese counterpart to get the appropriate sign offs done to ink a non-binding deal. Whether its non-binding or not what is clear is that they are going through the appropriate channels like the Chinese FDA (cFDA) and that these channels are moving very quickly to get these trials started and completed. They described a company that owns 8 Tier-1 hospitals and has a CAR-T franchise.
Basket Trial: The basket trial news hit the wire, and there are follow on updates planned. They updated the count since last week. Another 20 have joined for a total of 70 patients waiting to get into the trial. The company indicated that by the end of the month they should be dosing patients. This means that additional data could be available to the FDA before they go back into review mode.
Debt Financing/Uplisting: They have engaged a premier investment banker to assist them in getting a 40 -50 million dollar raise. The NYSE listing requirement is $2.00 $5.0 million and 18 months of burn saved. In the past month they took in $7.6 million in gross proceeds and indicated that warrants were now being exercised.
BLA Filing: The filing had been pushed back by a month after the FDA asked them for more safety data. Initially the FDA was fine with 50 patients, but wanted an additional 595 from the CD03 trial. Amarex committed to enter in the data as quickly as possible for a premium price. Most would view this development as a negative, but it is quite positive because the additional safety data makes the BLA completely sound on the safety. This robust safety profile greatly increases the likelihood of Breakthrough Therapy Designation (BTD) approval. The data also paves the way for a very quick monotherapy approval without additional trials because the data subsets overlap by a huge amount making the case; how can you approve one without the other because the data sets are almost identical.
PrEP Study Licensing: They are looking for more licensing partners in the European Union and talking to big pharma. That has meant ViiV (GSK & PFE) and Gilead Sciences (GILD) in the past. The Tai Red Cross has a protocol ready to go with 1200 patients.
Investment Summary
CYDY is not being run by a delusional fraudster as Culper Research would have you believe. The CEO is very stable and focused but can’t seem to hold back his excitement. He is definitely guilty of being excited. But why? They did stop metastatic disease. How would you feel if you just saved your mother in law and you saw a complete transformation?
Culper’s horrific track record and anonymity speak volumes about the quality of research they distribute. Only negative things are mentioned. The best strategy after a Culper bear raid is to consider the source and the future the stock. CYDY has a tremendous amount of potential to be the next Gilead (GILD). They have a platform drug with 32 indications. The have filed for one BTD but then potentially have another in the works. Having two shots on goal for a BTD is like having 2 shots at $8 billion which is the average market cap of a BTD stock. With the new patient data it appears like they are a definitive path toward regulatory approval in the coming weeks or months. This could be the best lottery ticket you will ever buy. The drawing is in the next two months.
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