While this biotech could certainly go much higher, our contributor is recommending taking profits.
Sell: Cassava Sciences, Inc. (SAVA)
From Cotton’s Technically Speaking
SAVA has performed well, and we expect it to go higher—maybe a whole lot higher.
This market is trading at all-time highs, and we want to protect our gains, and a lot of stocks are selling off.
On May 10th, the company reported that it has initiated a 6-month Cognitive Maintenance Study (CMS) targeting 100 subjects. The results of that study and the results of its planned 3rd phase trial, if positive, could push the stock up another hundred points. And if Cassava gets FDA approval, it could move it another 100-200 points. When Biogen received approval for its Alzheimer’s drug, the stock moved from 270 to 460 intraday—in two days. It now trades at 396, and we think Cassava’s drug is superior to Biogen’s.
We bought the SAVA Jun 18 2021 75 Calls on June 15.
We sold Cassava stock at 79.42 on June 17. Nancy’s note: we recommended SAVA at 12.97 in our January 2021 issue #837. Great job, Joe!
Joseph Cotton, Cotton’s Technically Speaking, cottonstocks.net, 727-289-4436, June 15 & 17, 2021