Dear Wealth Daily reader:
This past November 30th I recommended that you take a position in a small, but quickly emerging healthcare stock: Anavex Life Sciences (AVXL – OTCBB).
In the article titled Searching for the Next Amgen, I told you to pick some up while it was still trading for less than $4 a share, because I believed that it was headed to $6 in the first quarter of ’08.
I want you to see a chart of Anavex compared to the Dow.
If you bought some when I recommended it in November, you’re up roughly 35%.
Today, the stock trades for about $5.20 a share. Now that the market is stabilizing, I feel comfortable putting my full weight and support behind it.
Let me leave no doubt – I consider Anavex to be one of the best microcap plays in the market today.
When the Dow tanked last week… tiny Anavex never dropped below $4.70… and it quickly recovered any losses.
Right now the stock is quietly being accumulated by savvy investors in the know. I recommend you take a new position or add to what you have while the small healthcare stock remains under the radar.
Like I said, it currently trades for $5.20. Its record high is $5.36. Once it breaks above that level, I think we’re headed to $7 to $8 by the Spring.
Now, I’d like to give you a press release that Anavex released last week. Unfortunately, the company released it on Tuesday, January 22… the day the Dow dropped 591 points.
So the market wasn’t in the mood to hear any good news, especially from a tiny drug company.
Still, the lack of any meaningful selling in Anavex during last week’s correction speaks volumes. It means that the current shareholder base is strong… and more importantly, they anticipate much higher prices for the stock.
Here’s the company’s January 22nd press release:
ANAVEX outlines corporate milestones, drug advancement plans for 2008. http://www.anavex.com/press_release_2008_01_22.html
Like I’ve enumerated many times before, healthcare will be another huge bull market in this century, especially with 80 million baby boomers ready to retire.
In addition to that, healthcare investments – especially drug stocks – are recession proof. Regardless of the economy, everybody continues to take medication. Anavex fits the bill perfectly.
