Thursday, 18 June 2020

The Next Big Player In The COVID Test Kit Craze Set To Double

ProMIS Neurosciences, Inc. (ARFXF) (PMN.TO)
Current Price: $0.26
Target Price: $0.50
Upside Potential: 92%
Market Cap: $72 million
Shares Outstanding: 280 million

There have been numerous companies that have gone on incredible runs and increases to their valuation thanks to developing test kits for COVID-19. For instance, Co-Diagnostics, Inc. (CODX) has a market cap of over $450 million (US), Aytu BioScience, Inc. (AYTU) has a market cap of over $175 million (US), MedMira Inc. (MMIRF) (MIR.V) has a market cap of nearly $300 million (CAD) and Sona Nanotech (SNANF) (SONA.CN) has a market cap of nearly $200 million (CAD). These companies rose from very little to nothing from just a few months ago to where they are today. This is what makes ProMIS Neurosciences, Inc. (ARFXF) (PMN.TO) very compelling. PMN increased 41% to $0.26 on 10 million volume traded in Canada on Wednesday after announcing the development of a highly accurate antibody test for COVID-19. Unlike many of these other companies, PMN hasn't risen from nothing, but still has a market cap of $72 million. A $0.50 target puts it at only $140 million, below all four of the aforementioned companies for what could end up being a superior test. We are up to 900 followers on our ValueTrades blog despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. If you like our picks you can also follow this blog by clicking the follow button on the top of the left hand panel. We have 39 followers so far on here. You can follow us on Twitter @StockTradePicks which has over 4,400 followers.

PMN has a very valuable technology platform that is being used to create antibody drugs, diagnostic tools and vaccines, namely for Parkinson's Disease, Alzheimer's and ALS. The fact that it was able to produce a COVID test of this level of accuracy shows how dynamic its platform really is. The news is as follows:

ProMIS Neurosciences and collaborator BC Neuroimmunology announce significant progress on development of highly accurate antibody test for COVID-19

Serology test achieves 99.9% sensitivity and 99.5% specificity for SARS CoV-2; ProMIS proprietary peptide antigens to detect neutralizing antibodies in next development phase

TORONTO and CAMBRIDGE, Mass., June 17, 2020 (GLOBE NEWSWIRE) -- ProMIS Neurosciences, Inc. (TSX: PMN) (OTCQB: ARFXF), a company with unique, core technology to predict novel targets on the molecular surface of complex proteins, and its collaborator BC Neuroimmunology Lab Inc. (BCNI), have created a highly accurate antibody test for SARS CoV-2. In validation testing, the serology assay achieved accuracy comparable to that of the industry leaders. Incorporation of ProMIS’ proprietary peptide antigens in the next phase of development is anticipated to support determination of whether or not antibodies detected in the serology assay possess virus neutralizing activity.
The antibody test developed in collaboration with BCNI is based on the use of surface plasmon resonance (SPR) technology, a sophisticated nanotechnology platform that offers advantages compared to ELISA (enzyme-linked immunosorbent assay), the current standard for assay creation. In particular, the latest SPR platforms offer the possibility for high-volume testing.
The current version of the ProMIS-BCNI antibody test achieves 99.90% sensitivity and 99.50% specificity for SARS CoV-2, the novel coronavirus causing COVID-19 and can be used to detect immune exposure to the virus. But the key step in development of a ‘best in class’ test is to create an assay that not only detects the presence of antibodies specific for the SARS CoV-2 virus but importantly, also allows to determine whether or not the detected antibodies have neutralizing activity, potentially conferring protection from COVID-19. As previously announced, using its unique technology platform ProMIS has identified 18 potential antibody targets (also called peptide antigens) that appear to be unique to the spike protein halo of SARS CoV-2. The next phase of ‘best in class’ assay development will involve testing to determine whether the antibodies that bind to one or more of these peptide antigens, as determined by surface plasmon resonance (SPR), are neutralizing antibodies.
“Starting next year, and throughout 2021 and beyond, we anticipate that billions of people will receive COVID-19 vaccines,” stated ProMIS executive chairman, Eugene Williams. “This is an unprecedented effort that showcases the capability and commitment of our industry. But it also means that billions of individuals will be vaccinated with very little information about the durability and variability of response to these new vaccines. We expect that vaccine companies worldwide and top research hospitals and government agencies will be looking for high volume, accurate, next generation serology tests with the ability to deliver more nuanced data regarding neutralizing antibodies. That is the rapidly emerging unmet need we are looking to serve as we progress development of our potentially ‘best in class’ SPR-based serology assay.”
An important note to point out in addition to the high accuracy of the test is that it is based on the use of surface plasmon resonance (SPR) technology. This leads to the possibility of high volume testing. Based on the tone of the news release, we think it's highly likely that PMN will follow this up with further COVID news shortly. With a mere $72 million market cap, PMN makes an excellent candidate to be the next COVID hype stock, but with a business plan and technology platform to back up the hype with something real.


Disclosure: We are long PMN.TO

What's next for microcap stocks? TradeMiner identifies seasonal trends and market cycles, the Penny Stock Prophet and Microcap Millionaires finds the next big small cap plays in various industries while Addicted to Profits makes trades from a Canadian perspective.

There are also some good books available on microcap stocks and day trading such as:

Mastering Microcaps: Strategies, Trends, and Stock Selection (Bloomberg Professional Library)

The Little Black Book of Microcap Investing: Beat the Market with NASDAQ/AMEX Microcap Stocks, OTCBB Penny Stocks, and Pink Sheet Stocks

Microcap Magic: Why The Biggest Returns Are In Stocks You've Never Heard Of

How to Day Trade for a Living: A Beginner’s Guide to Trading Tools and Tactics, Money Management, Discipline and Trading Psychology

How to Day Trade: A Detailed Guide to Day Trading Strategies, Risk Management, and Trader Psychology

A Beginner's Guide to Day Trading Online (2nd edition)

Stock Investing for Beginners: Marijuana Stocks


Here are some other good stock market resources. This includes technical analysis and day trading, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies:

The dividend stock report from dividendstocksonline.com

Posted by at