Biocept Stock (NASDAQ:BIOC) is a name that we have covered on and off since 2017. Biocept Stock has been a horrible investment since, but it’s been great for traders and momentum players. Price spikes are a regular occurrence and one which rewards patient investors that sell into those big moves.
As we keep telling our subscribers over and over again, the key to successful penny stock investing is to find the momentum BEFORE it happens. Don’t go chasing!
Looking at the chart below, it’s clear that Biocept stock is setting up for another major price spike.
About Biocept Stock
The company describes itself a cancer diagnostics company, which develops and commercializes proprietary circulating tumor cell (CTC) and circulating tumor DNA assays utilizing a standard blood sample. For the past thirty years or so, physicians have been using standard biopsies to determine the existence (and progress) of a patient’s cancer. Biopsies, however, are invasive, can be painful, and difficult to carry out in many instances. Biopsies pick up on certain tumor cells, and fragments of DNA, and can use the frequency of these two elements to determine how advanced the cancer in question is.
Biocept’s tests do exactly the same, but they detect circulating cells and the DNA fragments in blood, as opposed to from a direct tumor sample. The tests are called liquid biopsies, and Biocept has developed a platform called Target Selector, which is the technology that detects the fragments in the sample. Target Selector tests are non invasive, and require a small amount of blood. They are ideal for tough to reach biopsy cancers (say, lung cancer) and in clinical studies, have proven similar in detection ability to biopsy. They’re not quite as accurate, of course (it’s a sort of satellite test, so it’s never going to be 100% as effective) but it works, and it’s cheap, quick and easy.
COVID-19 Testing Play
Biocept stock announced back in April that the company verified a COVID-19 molecular diagnostic test, and plans to begin accepting physician-ordered testing requests for processing beginning on April 15, 2020. Biocept partnered with a national clinician network to accept patient samples and may obtain additional agreements as test capacity is increased.
Biocept operates a high-complexity, CLIA-certified, CAP-accredited and BSL-2 safety level laboratory in San Diego, with specialized, licensed molecular lab staff that have been trained in performing the COVID-19 testing. The lab will be using the FDA-approved for EUA (Emergency Use Authorization) testing ThermoFisher Scientific’s TaqPath™ molecular diagnostic platform and kit for SARS-CoV-2 (COVID-19).
Identifying Cancer Mutations
The presence of tumor cells in cerebrospinal fluid may be an indicator of brain metastases, which occur when cancer has spread to the central nervous system. Biocept’s Target Selector™ assays can detect circulating tumor cells (CTCs) and circulating DNA (ctDNA) and identify cancer associated biomarkers in cerebrospinal fluid.
The Company can also identify biomarkers with testing CTCs and ctDNA in the blood of patients diagnosed with cancer. Identifying biomarkers is necessary for physicians in selecting targeted therapies. Up to 30% and 36% of patients diagnosed with breast and lung cancer, respectively, will develop brain metastases during the course of treatment.
In January 2020, Biocept announced the commercial availability of its Target Selector™ cerebrospinal fluid assays for the rapid identification of molecular alterations in brain metastases in patients with primary breast or lung cancer.
Biocept’s Cerebrospinal Fluid Testing
A medical procedure known as a spinal tap or lumbar puncture is typically performed to collect cerebrospinal fluid when cancer patients present with central nervous system symptoms, for example confusion or dementia. More than 200,000 of these procedures are performed annually in the U.S. Biocept’s Target Selector™ testing provides an alternative and potentially more accurate means of detecting biomarkers from CTCs or ctDNA of patients with cancer that has metastasized to the central nervous system compared with cerebrospinal fluid cytology.
Biocept stock is a smart turnaround play as well. If the company can keep revenue growth at 28% per quarter and if they can achieve the revenue growth at the same trajectory for the next 4 quarters, Biocept should be at breakeven by the end of this year. We believe this is easily doable as the sales team they has been totally revamped with experienced people, which has lead a higher sales each quarter.
No More Capital Raises
Biocept reported cash and cash equivalents as of March 31, 2020 of $21.5 million, compared with $9.3 million as of December 31, 2019. The increase included approximately $17.7 million in net proceeds from two registered direct offerings and the overallotment of warrants from a December 2019 financing. In April 2020, the Company raised net proceeds of approximately $9.6 million from a registered direct offering.
Currently trading with a market cap of just $67 million, Biocept stock has a history of big moves and can turn into a microcap runner in an instant. Considering its vast IP and strong balance sheet, we believe Biocept stock is setting up for a huge move. When it will happen, no one knows for sure, but it’s likely to be sooner rather than later.
Good luck to all (except the shorts)!
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Disclosure: We have no position in Biocept Stock and have not been compensated for this article.