Investing in new companies


Brain

Some people are interested in getting in on the ground floor of a company that has value to add to society in hopes that the stock of that company – of course – will take off like a rocket.  There is a new company that recently has hit my radar that you may want to consider following if you are this kind of investor.  It is CNS Pharmaceuticals.  CNS Pharmaceuticals think they may have come up with a cure for a certain kind of cancer.  The problem is getting the drug to work and getting it past the US Government Bureaucrats known as the FDA (Food and Drug Administration).

Some of the latest news on this company …

CNS Pharmaceuticals – listed on the NASDAQ as CNSP.  This company went public on 11/13/2019 at $4.00 per share, and this is the latest news:

“In 2020, with the funding secured from our NASDAQ IPO, CNS will commence its Phase 2(a) clinical trial of Berubicin for the treatment of GBM.”   It should be noted Phase I studies assess the safety of a drug or device.  Phase II studies test the efficacy of a drug or device. This second phase of testing can last from several months to two years, and involves up to several hundred patients.

What is GBM?

GBM is Glioblastoma Multiforme which is the brain tumor that ended the lives of Ted Kennedy, Joe Biden’s other son (not Hunter) and Senator John McCain recently.  Once this diagnosis has been made it is said that the person has a life expectancy of just 14 to 16 months.

A company I use for much of my research – Vectorvest.com – did not start tracking this stock until 11/27/2019 and it is just one of the 8,260 stocks tracked as of this writing.  The chart below is a chart of the price action of this stock sine 11/27/2019.  You can clearly see the stock hit a low of $3.65 on 12/10/2019 and a high of $5.49 on 01/13/2020.  As of this writing this stock is trading at $4.24 per share.  It really has not moved that much.

CNSP

I am also attaching a link that leads to an article from tradestock.com.  At the top of the article is an 8-minute video that shows how this new drug is supposed to perform … though again there is no guarantee this is going to happen.

https://tradestocks.com/cns-pharma-1/?utm_source=325&utm_medium=DedEmail&utm_campaign=CNSAdvert

You can also see a similar video by visiting the website of the company itself at cnspharma.com

If the clinical trials work out, I can see this stock really taking off vertically – and if they don’t, I can see a person who may invest losing their money, or at least a portion of it.  I am not a scientist and have no way to know how it will go.  It seems feasible that this could be a good drug – but at this time I have not purchased the stock.  I have added it to my watch list and you may want to do the same. If I can see three or four days of a solid uptrend, I may invest a little in this company.  However, I would never invest more than I can afford to lose – nor should you.

REMEMBER:  If you invest in a company in this industry (especially a young unproven company) it is going to be a volatile up and down roller-coaster ride.  Long-term, if the drug proves to be a good one, you may be a happy camper in years to come.  VectorVest has placed this company in the Drug (Biomedical/Genetic) industry group.  Another such company that has been around for a much longer time doing drugs such as this is Gilead Science (GILD) and this is what its price chart looks like over the past one year …

GILD

As you can see … it is clearly a rollercoaster ride and this company is big enough to pay out a dividend yield of 3.97% per year (dividend paid divided by current price).

Bottom Line:  If your going to invest, do so with caution and watch the charts for awhile before doing so.

Have a great time investing and making waves in your finances,

Jerry Nix | FreeWaveMaker, LLC

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