Tomorrow, a small bio-tech company which specializes in cancer research named OncoSec Medical (ONCS) is set to present data at the ASCO conference tomorrow (June 4). This event may greatly move the stock in both direction, but I am confident that this stock will be great in the long term regardless of the result. Here's why.
Heavy institutional ownership
OncoSec is almost 27% owned by institutions. Of that group, hedge fund Point72 Asset Management has third highest ownership at over 6% over the company. Recent 13F filings indicate that the fund added another 1,035,000 shares of the company. Other funds that have also added or started positions in ONCS the last quarter are: VenBio (new position of 4,007,696 shares), Nexthera Capital (new position of 2064,297 shares), and Vanguard (doubled their current position by over 1,129995 shares).
These are the top four institutional owners of ONCS based on number of shares. Accumulating or starting new positions before data is especially exciting to an investor because this means that the "smart money" is flowing into ONCS. By that, I mean that groups with greater insider knowledge than the public are flooding the company, indicating they expect something big to happen.
Another interesting point is that Point72 Asset Management (aka Steve Cohen, CEO of the fund) is adding shares in this small cap cancer firm right before data. The last time they added shares right before data in a small cap cancer stock was Celator Pharmaceuticals. This stock jumped from over $2 to $30 in the course of 4 months after both presenting positive data and being bought out at a significant premium. I am ecstatic about their purchase of ONCS because they clearly have a knack for identifying small cap cancer stocks that can soar both during and after data.
Merck Partnership/Future Data
In case tomorrow's ASCO data doesn't propel ONCS, don't worry. The company is partnered with Merck, a biotech giant. The company may still report positive date but fall due to the "Buy the rumor, sell the news" concept. However, the positive data might intrigue Merck into buying out ONCS, which would significantly boost the stock's price.
In case there is not buyout, ONCS's has a great foundational platform is called Immunopulse, a drug centered around targeting cancer areas in the breast region and above. They have promising data coming out in the second half of the 2018 fiscal year, and given the company has soared in the past based off of positive data from Immunopulse IL-12 (a variation of their platform, I anticipate similar results/moves from the company in the coming months.
For traders: Play the ASCO data and buy if data is positive. If the company reports positive data but still dips, buy when the company has an RSI below 30 (oversold) and wait for a green day/MACD line to flatten, indicating a bullish reversal.
For investors: Hold the company regardless of tomorrow's ASCO results through 2018. ImmunoPulse is a promising platform which looks to receive more positive data and results in the future, which is great for the foundation of the stock and, consequently, the investor. Remember, tomorrow is only one event. This company has a bright future coupled with great foundations.