One of the hottest stocks to own went unnoticed for months.

But not many investors are ignoring AVEO Pharmaceuticals (AVEO) anymore.

In fact, since June 2017, shares of AVEO have roared from a low of just 68 cents to $3.19 a share – a 369% gain in just weeks.

The Cheap Investor has been no stranger to the stock.  Our last recommendation was at $1.05 a share in the August 2016 issue.   Wall Street ignored the stock at that attractive price. Now our subscribers are now looking at a potential gain of 204% in a year’s time.

All thanks to incredible news out of Europe.

In late June 2017, the Committee for Medicinal Products for Human Use (CHMP) in the European Union made a big announcement, recommending that the company’s lead drug candidate, tivozanib be approved as a treatment for renal cell carcinoma.

The European Medicines Agency still needs to approve the drug.  However, it has a tendency to follow the recommendations of the CHMP. While we won’t hear anything for weeks on final approval, chances look good for the authorization and for further upside in the stock.

A positive opinion from the CHMP is a critical step in our goal of obtaining regulatory approval of tivozanib as a treatment for RCC,” said Michael Bailey, president and chief executive officer of AVEO. “Tivozanib’s unique tolerability profile together with the longest progression free survival reported in a Phase 3 first line RCC study, have the potential to fill an unmet patient need for better tolerated treatment in this disease. Further, we believe this tolerability profile could enable immune-oncology combinations such as those in the Phase 1/2 TiNivo study, which combines the PD-1 inhibitor Opdivo (nivolumab) with tivozanib and recently advanced to Phase 2.

If the European Commission grants marketing approval for tivozanib, it would trigger a $4 million research and development reimbursement payment from EUSA, and AVEO will also be eligible for up to $12 million in additional milestones from EUSA based on member state reimbursement and regulatory approvals. These payments would add significant resources to our balance sheet as we work toward the anticipated readout of our U.S. pivotal trial in third-line RCC, the TIVO-3 trial, in the first quarter of 2018.

AVEO is further proof that strict due diligence can lead to incredible opportunity.  Just look at the 204% potential gain our subscribers are seeing.

After 36 years of spotting similar opportunities, we’re just getting warmed up.