Date : October 16, 2017
New Opportunity: Vitality Biopharma Inc. (OTCMKTS: VBIO)
It’s time for the playoffs in baseball, and we wanted to reflect on something that happened earlier this season when Brian Goodwin stepped to the plate against Michael Blazek back in late July of this year in a game between the Washington Nationals and the Milwaukee Brewers.
Goodwin drilled a homer to right. He was then followed by Wilmer Difo, Bryce Harper, and Ryan Zimmerman who all did the same. Back to back to back to back. It’s one of the rarest feats in sports.
Well, baseball is one thing. Small and micro-cap stocks is a totally different ball game. In our last 4 picks, you’ve seen at least 20-40% upside in each pick. That’s not luck. That’s a ripe market and good system.
Our latest pick is a perfect example. Everything truly lines up here. Get excited!
Company: Vitality Biopharma Inc.
Latest News: http://finance.yahoo.com/q/h?s=VBIO+Headlines
Company Website: http://www.vitality.bio
Who is VBIO?
Vitality Biopharma Inc (OTCMKTS:VBIO) frames itself as a company that focuses on the development of cannabinoids for the treatment of neurological and inflammatory disorders, such as inflammatory bowel disease and multiple sclerosis in the United States. VBIO is dedicated to unlocking the power of cannabinoids for the treatment of serious neurological and inflammatory disorders.
Its products in the pipeline include Cannabosides – VITA-100 for gastrointestinal disorders, including inflammatory bowel disease and irritable bowel syndrome; Cannabosides – VITA-210 for muscle spasticity in multiple sclerosis and rare white matter disorders; and Cannabosides for epilepsy, schizophrenia, substance abuse, and Huntington’s disease.
The company was formerly known as Stevia First Corp. and changed its name to Vitality Biopharma Inc. in July 2016. Vitality Biopharma, Inc. was founded in 2007 and is based Los Angeles, California.
According to company press materials, “Vitality Biopharma is dedicated to unlocking the power of cannabinoids for the treatment of serious neurological and inflammatory disorders.”
Vitality believes that its prodrug Cannabosides could enable targeted delivery of THC molecules into the gut, which would enable higher local concentrations for pain and inflammation in the gastrointestinal tract. The company plans to begin Phase I/II studies this year while taking pathways that involve shorter trials through acute dosing regimens.
There are basically three things you need to know about this company right now as far as recent catalysts. The first two are more important than the third, but the third is still a big deal.
First, the company announced over the Summer positive preclinical efficacy results for its gut-targeted cannabosides in the treatment of colitis.
According to the release, “Vitality Biopharma has developed a new class of cannabinoid prodrugs, known as cannabosides, which upon ingestion can be targeted and limited to the gastrointestinal tract, thereby avoiding drug psychoactivity and unforeseen side effects. In a preclinical model of inflammatory bowel disease (IBD), cannabosides were able to reduce weight loss, decrease damage to the colon, and markedly improve gastrointestinal health compared to the placebo controls. Vitality’s cannabosides were successful in treatment of an acute model of colitis (DSS), which is traditionally viewed as very challenging, given that certain FDA-approved therapies including corticosteroids and TNF-alpha inhibitors have been shown to be ineffective for treating this model. The positive preclinical efficacy results with cannabosides are required in order for the Company to progress into first-in-man clinical trials.”
Second, the company followed that up with the huge news that, on July 28, 2017, VBIO closed on a $1 million private placement investment. Execs have noted that the company plans to use the proceeds from this financing for cannabinoid pharmaceutical research and development as well as for general corporate purposes.
Company CEO Robert Brooke notes, “We are excited to obtain this additional investment from institutional investors, which is very helpful as we advance our proprietary cannabosides into clinical development.”
Those two catalysts, taken together, spell big things for this organization. R&D is funded well out into the future, the company has a pipeline foothold on a leadership role in the space, and that space has huge prospects ahead.
That string of logic probably explains the third factor: microcap and small-cap analysts are starting to push the targets for this name. You may not follow them a whole lot, but we have recently seen a genuine buzz starting to develop under this stock that could be a game changer, as it focuses attention on how the story adds up to well more than the sum of its parts. SeeThruEquity was first on board. We’ve seen a few others. We expect that momentum to continue.
It’s not a matter of opinion. It’s just mathematics at this point.
This is an extremely interesting chart right now. You know we like to see all the ducks line up well. So, we like the chart to confirm the thesis on the fundamental side. And right now, this thing sets up in an extremely promising manner.
First off, we see the uptrend line getting checked right now on the all-important logarithmic chart. It’s a near perfect support line in play right now. Secondly, we see the RSI indicator signaling an “oversold bounce” trigger now as well… it’s right at the key 30 level.
The last three times it has triggered that same signal, we saw at least 50% in gains over the next week. On one occasion, we saw 300% in less than a month.
So, we have the trend line pairing up with the RSI signal, both at the same time. That’s a rock solid technical signal.
In addition, one reason why this stock was able to launch from under a buck to over four bucks in a month is because it trades on a very small trading float (just 7M shares). That acts as an accelerant when momentum kicks into gear.
VBIO (Vitality Biopharma Inc.) frames itself as a company that focuses on the development of cannabinoids for the treatment of neurological and inflammatory disorders, such as inflammatory bowel disease and multiple sclerosis in the United States.
VBIO is dedicated to unlocking the power of cannabinoids for the treatment of serious neurological and inflammatory disorders. Its products in the pipeline include Cannabosides – VITA-100 for gastrointestinal disorders, including inflammatory bowel disease and irritable bowel syndrome; Cannabosides – VITA-210 for muscle spasticity in multiple sclerosis and rare white matter disorders; and Cannabosides for epilepsy, schizophrenia, substance abuse, and Huntington’s disease.
VBIO was founded in 2007 and is based Los Angeles, California.
- VBIO has a small trading float of just 18.5M, which suggests the stock could launch higher on any additional influx of interest.
- VBIO is making real money, with trailing revs already coming in at $144K.
- VBIO is coming off an RSI trough right at 30, pointing to a massively oversold stock that could potentially be ready to bounce hard, just as it has the last three times it hit this level.
- VBIO has been one of the most exciting names in the cannabis patch in recent months, and now offers a dip/bounce setup with technicals in place.
- VBIO is trading at a price that doubled the stock last time it was here (end of March — $1.31 to $2.75).
VBIO is a stock that has shown a huge ability to make monster moves in the cannabis biotech space. The company is a balancing act between strong potential and a recent potency to fund the actualization of that potential. And the market is sitting at a key oversold point within the context of a very clear upward trend – let’s not forget, the stock is up 300% in the past 18 months.
That beats the pants off AMZN, AAPL, GOOGL, and FB. This is the clear winner in that group.
Now, consider that it has consolidated for the past 8 months. This is overextended to the downside according to the indicators. A bounce setup inside of a rabid uptrend. That’s when it all lines up. Give this stock some attention ASAP!