Sellas Life Sciences SLS Stock News

2019 hasn’t been a very good for Sellas Life Sciences Group Inc (NASDAQ: SLS) as of yet. Unfortunately, the stock is dipping yet again with losses of more than 8% in the premarket this morning. However, I believe that the stock will turnaround to close the year on a strong note, starting with a boost from a short squeeze that’s just around the corner. Here’s how I see it:

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SLS Stock Could See Dramatic Gains Soon

As mentioned above, this year has been a rough one for Sellas Life Sciences and its investors. Unfortunately, shorts have been dragging the stock down for some time now. However, when a shorted stock sees gains, those who shorted see losses, leading to abandonment of their positions. This can trigger a short squeeze, leading to tremendous gains, and that’s exactly what I’m expecting to see relatively soon.

I believe that the catalyst that will lead to a shift in direction of the stock will be released within the next week or two. It surrounds a clinical trial known as VADIS.

In the trial, SLS is assessing a combination vaccine therapy for the treatment of patients with breast cancer. The treatment combines Nelipepimut-S and GM-CFS, a combination that has shown early signals of efficacy and and a strong safety profile to date.

My timing comes from updates that have been posted on ClinicalTrials.gov. According to the updates, the study was completed on June 27, 2019. On July 18, 2019, a QC update was posted, bringing us closer to the top-line data release.

While the trial was completed a month ago, the reality is that SLS will need some time to assess the data generated while the trial was active. Nonetheless, that time is passing quickly. Historically, with top-line data generally provided shortly after the QC update following study completion, I’m expecting that top-line data will be released relatively soon.

Moreover, I’m expecting that these data will follow the same positive trends that we’ve seen from the combination in the past. As a result, the stock is likely to react in a positive way, leading to a short squeeze.

The Short Squeeze Is Only The Beginning

In my view, the short squeeze will not be the only positive movement that we see out of Sellas Life Sciences stock. In fact, I believe that it will be the beginning of a turn around as bears are spooked away from the ticker.

The truth of the matter is that positive data here would be a very big deal. Let’s not forget, according to Yahoo! Finance, SLS trades with a market cap of around $15 million. However, should all go well with this combination treatment, it will be entering the breast cancer market. That’s a market that experts predict will grow to be worth $38.4 billion by the year 2025.

Considering the relatively small market cap and massive market size, the potential here is incredible. After all, the company would only need to access a tiny fraction of the market to provide significant value growth for investors.

Analysts seem to have the same positive opinion. In fact, the average rating on the stock is a Buy. Even more compelling is the price target. At the moment, price targets range from $4.50 on the low side to $13 on the high side, with an average price target of $8.75. Even on the low end, the price target represents potential for growth to 30 times SLS stock’s current value.

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The Bottom Line

The bottom line here is that Sellas Life Sciences has tremendous potential in the long term. Moreover, we could see a short squeeze in the short term that leads to a reversal in the direction of the stock, setting the stage for strong growth ahead. As such, SLS is a stock that’s well worth watching!

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