Sometimes when a stock has a rough day in the markets, it might not always mean that it is no good. In fact, it could well be a buying opportunity and that could be the case with the Advaxis stock if some analysts are to be believed.
Back on September 19, the Advaxis, Inc. (NASDAQ:ADXS) stock experienced a major drop and declined by as much as 12% at one point. It goes without saying that it was a cause for alarm for many but one needs to go deeper in order to figure out what actually took place. Here’s why some analysts believe that it could be a smart pick now.
First and foremost, it needs to be pointed out that there was no news with relation to Advaxis’s business that could have resulted in such a steep decline. It is believed that after the company made an important announcement on September 9, day traders took the stock upwards and then when they believed that the top had been reached, they booked their profits. In its announcement on September 9, the company stated that the company is going to start tests on its new units and enrollment has already begun for the same.
In addition to that, Advaxis has also produced data about its upcoming product ADXS-PSA and that could again be a significant positive for the company in the long run. The clinical-stage biotech firm will, however, need significant investments going forward and that could possibly be the only worry for investors. That being said, Advaxis does not have any immediate cash problems, having managed to raise as much as $17 million in a public offering.
Additionally, its expenses have reduced significantly as well and that would also contribute towards further growth. While it is true that there might be concerns with regards to funds, it needs to reiterate that Advaxis could well be a clever investment.