More cash in the bank than market cap: AXYX

Axonyx Inc. (AXYX). The Group's principal activities are to discover, develop and acquire pharmaceutical compounds for the treatment of memory and cognitive disorders. The Group identifies and acquires novel post-discovery central nervous system drug candidates. It acquires the patent rights to these candidates and advances the compounds through clinical development towards regulatory approval. The Group has acquired worldwide exclusive patent rights to three main classes of therapeutic compounds designed for the treatment of Alzheimer's Disease, Mild Cognitive Impairment and related diseases.

Here's the all history chart for AXYX:



On May 19th the new director of the company bought 250,000 shares. On March 31 the company had $75,941,000 in cash, but the market cap is just $74,046,762 (read link: Axonyx Inc. Announces First Quarter 2005 Financial Results).

Considering the short term chart:



We see that volume has been high over the last few days and on Friday's session we've had an explosion in volume. The risk on this trade is low, since there won't be a technical motive to keep the stock if it breaks $1.32 on close again.

AXYX is a stock on fire for tomorrow's session.

Everyday I will analyze AXYX after the market close until I sell the stock. I always tell I'm going to sell before I actually take action. You just have to follow the answers to this post.

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