$SILO Seasonal FindingsOne of the most interesting biotech stocks out there is Silo Pharma, Inc. (NASDAQ: SILO) due to its ability to utilize psychedelic research in new and exciting directions. An example of this is its recent announcement concerning a ketamine implant as a treatment for fibromyalgia. That said, SILO is currently researching a litany of treatments that might change the way people perceive psychedelic medicine thanks to its focus on treating ailments that are not traditionally approached with psychedelic medicine like Alzheimer’s and rheumatoid arthritis. Regarding those treatments, SILO is set to release multiple study results later this summer and in early fall. With the stock trading near its 52-week low, SILO stock could be a bargain ahead of its findings.
SILO Fundamentals
Most psychedelic companies focus their research on mental health conditions like depression, anxiety, and PTSD. SILO, on the other hand, focuses on treating diseases that are not conventionally treated using psychedelics as its pipeline includes many patent-protected treatments like those for Alzheimer’s, multiple sclerosis (MS), rheumatoid arthritis (RA), fibromyalgia, and others. These treatments are not typical, and as such, they could produce surprising findings that lead to major medical discoveries.
As things stand, SILO is expected to release 5 results from its studies from the end of this Summer to the Fall. In August, SILO is set to release data concerning its SPU 21 RA treatment, as well as its SPU 16 MS treatment, and its SPC 15 treatment for anxiety/PTSD. In September, SILO plans on releasing data concerning its SP-26 mechanism which is currently being tested in the treatment of multiple illnesses. While SILO did not specify which indication the data will discuss, it could be related to fibromyalgia. Additionally, study results for SILO’s SPC 14 Alzheimer’s treatment are set to be released in the fall although a specific month was not given for its release.
Given the plethora of study data that is set to be released in the Fall and SILO’s 2.5 million float, the stock might run in anticipation of the data as well as due to the results themselves. If the results of these studies are favorable, SILO’s treatments would be one step closer to clinical trials which might see SILO stock soar from its current levels.
It is also worth noting that according to its latest quarterly report, SILO has enough liquidity to last 12 months at least. This is significant since many biotech companies resort to dilution regularly in order to make up for their lack of product revenue and to fund research as well as trials. Given the uniqueness of SILO’s liquidity, investors should be safe from dilution in the near future.
SILO Financials
According to its Q1 2023 earnings report, SILO stock’s assets decreased QoQ from $11.6 million to $11 million. Its cash on hand, on the other hand, sharply decreased from $11.3 million to $4.6 million, however, SILO acquired $6 million in highly liquefiable short-term investments in Q1. SILO’s Liabilities increased from 1.3 million to 1.5 million which is inconsequential given its investments and cash on hand.
As for cash burn, SILO’s total expenses increased YoY from $543 thousand to $820 thousand, which as a result caused its net loss to increase from $604 thousand to $906 thousand.
Technical Analysis
SILO stock is in a neutral trend and is trading in a sideways channel between its support at $ 2.08 and its resistance at $ 2.40. Looking at the indicators, the stock is trading below its 200, 50, and 21 MAs which are bearish indications. Meanwhile, the RSI is neutral at 45 and the MACD is approaching a bullish crossover.
As for its fundamentals, SILO is set to release a cluster of research data this fall. Additionally, it has a low float which makes the stock run easily on news. These two factors could result in a major stock run in anticipation of findings and due to the results. With the stock trading near its 52-week low, the current PPS could prove to be a good entry point ahead of SILO’s upcoming study results.
SILO Forecast
This Summer and Fall are poised to be momentous for SILO stock. As is, SILO is set to release 5 different study results which may cause the stock to surge in anticipation and as a result of the findings. If the findings are promising, SILO will be one step closer to conducting clinical trials, which would be a major catalyst for the stock.
