With shares of Celsion Corp. (NASDAQ:CLSN) trading at around $1.54, is CLSN an OUTPERFORM, WAIT AND SEE or STAY AWAY? Let’s analyze the stock with the relevant sections of our CHEAT SHEET investing framework:
C = Catalyst for the Stock’s Movement
WARNING! If you want to invest in biotech, then you must be fearless and as emotionless as humanly possible. This is a dangerous game. It’s a game that can give you the greatest natural high you’ve ever experienced – most stocks don’t have the potential to skyrocket 100 percent or more in a day – but it’s also a game that will eventually break your heart.
It’s like Russian roulette. You might have a great winning streak going that makes you a lot of money, but you’re eventually going to have to deal with fatal consequences. Luckily, in this sense, it’s only an investing fatality. And if you’re an experienced investor, then you know that the best of the best are those who have lost a lot of money, brushed themselves off, and entered the arena once again. The reason they’re better investors is because they know what it’s like to have lost everything, and they’re not going to let it happen again.
That’s also why great investors will only take small and speculative positions on biotech stocks. This way, a win is great, and a loss is manageable, both financially and emotionally. Celsion presents a perfect example. Not many stocks have the potential to move in this manner.
ThermoDox recently missed the primary endpoint of the Phase III HEAT study related to liver cancer. This led to an 86 percent drop in the stock price. That’s beyond the house of pain. That’s the house of hell, where you feel the tips of the pitchforks and the scorching white hot fire burning your flesh. So, the next time you’re upset about spilling coffee on your pants because it’s hot, uncomfortable, and looks like you wet yourself, think about those people who were heavily invested in Celsion. Better yet, think about the people who were hoping for positive results due to health reasons. After all, ThermoDox is safe and well tolerated. ThermoDox is also being used in two more trials for breast cancer and colorectal cancer.
Let’s take a look at some important numbers prior to forming an opinion on this stock…