OncoSec Medical Inc (OTCMKTS:ONCS) Calms Down After The Drop
It’s been exactly a week since OncoSec Medical Inc (OTCMKTS:ONCS) tumbled following some news about a public offering involving some unnamed institutional investors. As we wrote in our previous article, quite a lot of traders got scared of the massive dilution caused by the sale of more than 47 million shares and decided to jump ship.
The effects on the price were absolutely profound. The ticker opened last Monday’s session below its previous close, started shaving off pennies within minutes and when the closing bell rang, it was a whopping 19.4% below September 13’s value. The next two days weren’t as dramatic, but even so, ONCS continued to drop registering daily dollar volumes of more than $1 million and ruining the days of investors. On Thursday, it managed to bounce back up by a little bit and on Friday it remained pretty much level with virtually no fluctuations up or down and an average trading volume. The question now is: “What does the future hold?”.
Well, it’s still quite early to say for sure. A press release came out a couple of hours before the start of Friday’s session informing us that Mr. Punit Dhilon, the company CEO, will take part in the Aegis Capital Healthcare Conference which starts on Thursday in Las Vegas, and like so many other small cap ventures, ONCS have tried to spice up their announcement a bit by saying that the symposium “will feature presentations from industry-leading growth companies in the healthcare sector”. We’re not quite sure about that.
The list of enterprises taking part in the event is publicly available and we can see some familiar names among it like Advaxis, Inc. (OTCBB:ADXS), Amarantus Bioscience Holdings, Inc. (OTCBB:AMBS), Champions Oncology Inc (OTCMKTS:CSBR) and Advanced Cell Technology, Inc. (OTCMKTS:ACTC). If you take a peek at the aforementioned ventures’ charts and read through the articles we’ve written about them, you’ll see that calling them “leaders” might be a bit of a stretch.
Still, the conference will give ONCS a chance to get more exposure and it could make some more people jump on board which might have some positive consequences but is this enough of a reason to boost the investors’ confidence?
Well, as it turns out, it helped the ticker remain level for a day, but for any sort of sustained growth, an update on the progress of their operations will probably do a better job. Unfortunately, no such information is expected to come any time soon. ONCS have put a timeline on their website which contains all the expected deadlines for each and every milestone during the development of their products and we can see that the last date marked on it is June 2014 when the results of the Phase II trials should be presented to the general public. We’ve no idea how many more steps need to be taken after that, but it definitely means that revenue generation is unlikely to commence in the next eight months.
On the bright side, the $12 million raised as part of last week’s public offering should be enough for them to finance their operations for a while and, provided everything goes according to plan, the people who hit the panic button during September 16’s session could regret their decision. If some set backs occur, however, ONCS could leave a sour taste in quite a lot of people’s mouths.
The large number of unknowns around the ticker really is the biggest risk and risks are, we reckon, something you should definitely consider when contemplating a potential investment in a company in which ONCS‘ Chairman of the Board, Dr. Avtar Dhillon, is involved. Why do we think so? Well, you can take a look at the charts for Arch Therapeutics Inc (OTCBB:ARTH) and Stevia First Corp (OTCMKTS:STVF) and see for yourself.