Without a doubt, CytoDyn has huge potential for investors and for helping those who suffer from HIV infection. Their therapy seems to make sense, and it certainly has benefits vis-à-vis those therapies that breed drugresistant strains of HIV. However, although things look promising, it still remains to be seen if Cytolin’s promise will be borne out by the studies now being undertaken at Massachusetts General Hospital by Dr. Rosenberg.
Overall, we believe there is a high enough likelihood of a favorable outcome to recommend CYDY shares for risk-tolerant investors who understand the likely binary outcome of the research process. We are therefore initiating coverage of CYDY with a rating of Strong Speculative Buy. While we are not issuing a price target at this time, we recognize that a successful result in either the current or the next planned study will probably lead to a very large increase in the value of CytoDyn and its shares, while also significantly lowering their investment risk profile.