The Baby Bull Market is Here….

This past week a friend of mine told me he would, “never buy individual biotech stocks again.” I could have sworn I heard a distant bell tolling as he did so.

Truth is, there is never a bell ringing at the bottom of the market. However, in hindsight, what always marks a bottom is apathy. Everyone gives up. Despair takes over and permeates through all market participants. I’m now convinced, for micro-cap biotechs we reached that point late last year.

December seems like ages ago but think back to early in the month. Tax loss selling was hitting every already beaten-up stock. And, it was particularly painful for the tax loss sellers as buyers were non-existent. In the first two weeks of the month, every biotech I’m monitoring closely (ANIX, ATYR, CRDF, INMB, NVNO to name my favs) was trading straight down.

Mid-month was the turn. I’d been predicting a turn coming for a while but it always seemed to false start. Then my personal bell tolled; The Gong Is Ringing…Stevie Cohen Called The Bottom?!? In hindsight, this could turn out to be one of my best calls ever (possibly, time will tell).

Right now I’m seeing interest return to a lot of micro-cap stocks. The days of apathy are a distant memory. What’s sparking this turn? It’s a combination of factors. To state the three obvious ones…

• Tax loss selling is over
• Short interest is at highs
• Valuations are at lows

Even more important than these three factors is history. Stocks don’t go down forever and Wall Street understands cyclicality. History does repeat itself and it’s never different this time…

Big money is turning its attention back here. Managers have a clean slate at the start of 2025 and they are now looking for the next bull market. Micro-caps should be a beneficiary of everything taking place in DC and they are now slowly coming back into vogue. This is a trend that will likely have long legs.

While I always remain invested in my little 10-bagger candidates, I did spend most of 2021 telling readers to be cautious. What was happening in the market was not sustainable and it was bound to end. I admit…it turned out to be a lot worse than I expected.

For the last year, I’ve been saying to stay the course in these stocks. The bear market was similarly going to end one day. It’s tough to know when it will but you want to be there when it does.

As an example, despite a 50% retracement of its runup happening in January, Atomera (ATOM) remains up 400% since October. It’s been a beast and, yet, if they execute it remains very cheap at this valuation.

Of late, INmune Bio (INMB) (I consult to INmune) has been moving. It’s up 85% year to date. This is still 33% below last year’s highs and roughly 70% below all-time-highs. There remains significant upside potential here.

The stock I cover that could be the next one to start garnering attention from traders is enVVeno (NVNO). They have major catalysts coming in 2025, including likely approval of the VenoValve along with obtaining reimbursement codes. They also have strong backing from Perceptive among other quality funds.

I think NVNO will be acquired sometime before the end of 2026. I think the move in the stock is imminent. If you’re not invested here yet, this is one to consider.

As everyone who knows me well has learned of late, I’m pretty much unilaterally focusing my time on INmune Bio. That said, other names do pop up at times, especially in my Slack room for premium subscribers. One of those that has been a nice winner is Senseonics (SENS).

Senseonics has been on a tear since they updated investors in a year-end newsletter. A link to that newsletter is available here. It’s a great read; this stock is very inexpensive on a P/Revenue basis.

We will be having a Zoom call for premium subscribers with SENS on February 3rd.

It’s so cold here that I’ll be in Whistler with the family next week to warm up. 50/50 whether or not there’s a newsletter, depending on if there’s any news worth sharing. So far, 2025 has been very light on newsflow but there’s a lot to look forward to in the coming months.