The Hygiology Post ® is presenting information about a company that seems to have much potential to help many people. Both 2012 and 2013 appear to be pivotal years in determining how helpful the patented technologies may actually be for people. Senesco Technologies has continued to update information on its web site (https://www.senesco.com/; retrieved on 08-06-13). As a matter of disclosure : The author continues to be a current shareholder in the company.
“Disclosure: I am long SNTI.OB. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
(Editors’ Note: This article covers a micro-cap stock. Please be aware of the risks associated with these stocks.)
Senesco (SNTI.OB) is one of the most undervalued biotech companies I have ever analyzed. The company has developed a new oncology drug that has outperformed the best oncology drug on the market. But what I really like about this investment is that even with excellent clinical trial results, near-term catalysts, insider buying, and a $75 billion total addressable market, Senesco is trading at a 90% discount to its peers. This is market irrationality at its best. Opportunities of this magnitude are rare.
Senesco’s mispricing will not last
Senesco’s mispricing is so dramatic that the following price targets appear unrealistic. But when conducting peer comparisons, these price targets are justifiable; it’s Senesco’s ridiculously low $7 million valuation that defies logic. I have consulted with numerous Wall Street veterans as well as biotech opinion leaders, and they agree that the following valuations are more appropriate than Senesco’s current valuation:
- Senesco is worth at least $30 to $40 million today given its positive clinical data and total addressable market of over $75 billion.
- When Senesco reports preliminary clinical data in a couple of months, with positive results Senesco should be worth at least $100 million.
- With continued positive clinical data in 2014 or a major pharmaceutical partnership, the company could be valued at well over $1 billion.
When Wall Street becomes aware of the extreme level of mispricing, Senesco’s share price should rise to a more appropriate level. Then it’s just a matter of waiting for near-term catalysts.”
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Louis DeCola, Jr. © 2013 The Hygiology Post ®