WAVE.V -- Bottoming Out Undervalued Pharma/COVID-19 PlayThe most attractive part of WAVE.V is share structure: 54M total float with 41M shares held by insiders / escrowed, leaving about 13M shares free trading. The company owns a portfolio of generic oncology drugs from which it generates over $300K of quarterly revenue. $1M in cash on hand. Based on last financials, they are $83K away from generating positive cash flow and recent developments suggest they will get there sooner rather than later:
-- Received grant to develop a rapid COVID-19 saliva based test in partnership with the University of Manitoba
-- Received authorization from several EU countries to expand sales of their generic oncology drugs
-- Expecting FDA authorization in Q4 2020
At below $10M mkt cap and in the absence of any cheap paper overhang, I feel that this is a tremendous opportunity. Compare it to something like THRM.V which is developing a similar saliva-based COVID-19 test, has next to nothing in revenues, a ton of cheap paper, 3x the float and 3x the market cap, and you realize that current valuation makes no sense.
Chart suggests the stock is reversing from short term downtrend after finding bottom at .15. A doji, followed by green candle on increased volume and EMA 20 crossing above EMA 50 providing additional support at .16. Today was a pullback on lower volume that resulted in a higher low. I used it as an opportunity to pad my position.
Next catalysts that could propel sp to significantly higher levels are updates on the oncology drug sales in Europe, rapid COVID-19 test development progress and FDA approval of oncology drugs for sale/marketing in the US.
