Georgi Kamburov

Is OncoSec Medical Inc (OTCMKTS:ONCS) Making A Recovery?

by Georgi Kamburov May 7, 2015

On Tuesday the stock of OncoSec Medical Inc (OTCMKTS:ONCS, ONCS message board) registered its new 52-week low of $0.26 per share. On the very next day however the ticker bounced and after adding close to 14% to its value climbed up to a close at $0.306. Is the positive movement just a technical result of the record lows hit by the stock or is it the start of more prolonged recovery?

Well, if the performance of the stock since the start of 2015 is anything to go by yesterday's bounce may be rather short-lived. In the past couple of months ONCS has posted several sessions ending with significant gains but as whole the chart of the company is far from positive. Even after yesterday’s climb the stock is still sitting over 35% lower than the $0.475 per share from the start of the year.

Although the company is having troubles forming an upwards chart trend its fundamentals show that they are far from the typical biopharmaceutical pennystock. The latest financial report filed by ONCS covers the quarter ending January 31, 2015, and contains the following numbers:

• $30.7 million cash
• $31.3 million total current assets
• $1.5 million total liabilities
• ZERO revenues
• $4.6 million net loss

The company projects that their cash reserves will be enough to fund their operations for the next twelve months.

In a PR issued on Monday the company listed the conferences it is going to attended in May. Yesterday Vista Partners LLC reminded investors though a PR that it has given ONCS a twelve-month price target of $1.20. Unfortunately this may not be enough to keep investors excited for long.

That however may not be the case if OncoSec is ready to announce the results from their Melanoma, Head & Neck Cancer and Triple Negative Breast Cancer clinical trials. They are also moving forward with the Clinical Phase IIb combination study that is going to evaluate the safety, tolerability and efficacy of OncoSec’s ImmunoPulse IL-12 when used in combination with Merck’s KEYTRUDA (pembrolizumab). Enrollment for the study should begin in the next 60 days.

ONCS may lack some of the most glaring problems usually found in pennystock companies but they remain a risky choice. Do your own research and set appropriate time horizons for your trades before putting any money on the line.

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