Our Stock of the Week is Axsome Therapeutics (AXSM). Axsome is developing a portfolio of products and has potential treatments for Alzheimer’s Treatment-Resistant Depression, Smoking Cessation and Migraine. It has a number of phase 3 studies and there are three near-term catalysts.

With the recent failure of BIIB’s Alzheimer’s drug and the big potential market for effective treatments in these areas, there is much interest in AXSM. Last Thursday, Cantor Fitzgerald increased its target on the stock to $25 from $16 and cited “multiple readouts in large indications.”

Technically, the stock has shown very good relative strength and is consolidating on higher volume following the BIIB news. It is will likely stay very active as it awaits news.

As always, we would not chase a gap-up open on Monday but would look to add shares, either on a lower-volume pullback or a higher volume close near recent highs. 

This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength and will buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees and affiliates of Shark Investing, Inc. and/or principals, employees and affiliates of Shark Asset Management, Inc. (“SAMI”), directly or indirectly, controlled investment and/or trading accounts containing positions in AXSM. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.

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