Anavex Life Sciences (AVXL)

Too speculative. They are a biopharma that develops drugs to neurological diseases, and that is the toughest thing to crack.

A clinical-stage biopharma that's trying to apply precision medicine to various nervous system diseases, a tough section of diseases to cure. Their lead drug aims to treat Alzheimer's and Parkinson's. Shares have tripled in recent years on positive data. But shares started to decline a year ago on unprofitable growth stocks like this. Shares have doubled since May due to positive clinical trial data. He doesn't recommend unprofitable companies, but that is the cost of business for early-stage biotech companies. He likes parts of this, but can't recommend this yet, and prefers a surer thing, Eli Lilly. A spec buy.