PHAS is Potentially the next Penny Stock to Spike like BTB, CNXA, FNHC, FNGR

Lightly traded, small float penny stocks have been on major runs recently. BTB and CNXA were up well over 100% during Tuesday's trading while FNHC went on a major run on Monday before it pulled back. FNGR has been on a major run of 1,000%. There is a commonality to all of these stocks. Other than their spike days, they are lightly traded, usually less than one million volume in a day, and had a major gap to fill. 

One stock that makes an excellent candidate to be the next major penny stock spiker is PHAS. It has a major gap to fill from last week between $0.40 and $0.75:











It tanked on bad news that its partner is trying to take the lead drug candidate for themselves, citing PHAS' weak financial state as the reason. Reading the 8-K filing, PHAS still has some legal premise to defend against its partner from taking the lead drug candidate for themselves so there's still hope/hype of recovery.

The stock has cratered on light volume, with 6.6 million shares traded on the day after the news was announced. It traded between $0.26 and $0.39, a gap down from the prior day's close of $0.76. Since then it has traded about 1-2 million shares a day. It was just trading over $1.00 a month ago, so there isn't a threat of being de-listed like something like AMPE. 

There are 50 million shares outstanding, 33 million float and 1.5 million shares short. These numbers compare quite favorably to the other penny stock spikers:


While CNXA and FNHC have lower floats than PHAS, PHAS usually has less than 100,000 shares in daily trading volume until the past week. The other three have essentially no shorts but PHAS has 1.5 million in short interest. This is enough to get a mini-short squeeze going due to the usually low volume. Shorts will probably want to take profits since they are likely up 75% or 80% and it doesn't matter too much to them whether they close their position at $0.20 or $0.25. But they would rather close their position before a spike gets out of hand like it did for the other penny stocks I mentioned.

We also saw HGEN move in the morning but that move fizzled out and HGEN ended up only 13% on the day. It has 104 million shares outstanding so it has a similar float to BTB. But the difference is that HGEN averages several million shares traded in a day, even on quiet days. The stock is just too widely held for it to have a sustained move like BTB, CNXA and FNHC. PHAS makes a much better candidate to have a greater than 100% spike. 

Comments

Post a Comment

Popular posts from this blog

Carvana: The Gamma Squeeze is Real, Time to Bankrupt Kerrisdale

Image
Heavily shorted Carvana Co. (CVNA) is in the middle of a squeeze. One that looks eerily similar to the beginnings of the one we saw on GME that eventually made it run to $400 and took down Melvin Capital. Once again certain market players or commentators who focus on fundamentals and who misunderstand or downplay the short squeeze thesis will only add fuel to the fire as they short the stock. Will Carvana be able to refinance its debts next year? Will it become profitable by then? Who knows, and who cares. 2024 isn't the timeline here. The timeline starts as early as June 16, 2023. Triple witching day on options. This time Kerrisdale Capital is the target. The firm is in a desperate spot because the last short call it made was C3.ai, Inc. (AI). AI is in the middle of its own short squeeze and has nearly doubled into $40's since Kerrisdale tried taking it down: The AI report is still featured alongside on the CVNA one on Kerrisdale's website , so we can assume this position
Read more

The Next NVDA-Backed Runner and New Asian IPO Squeeze Play

Image
We have seen stocks like Super Micro Computer, Inc. (SMCI) and SoundHound AI, Inc. (SOUN) have incredible squeeze runs thanks to their connection to NVIDIA Corporation (NVDA). We think the next one will be Spire Global, Inc. (SPIR), which popped a week ago after it announced a collaboration with NVDA to enhance AI-driven weather prediction. A few day later it dropped on the announcement of a financing at $14, with the potential to raise $61 million if warrants at $14.50 are exercised. We think there is a good chance that NVDA got in on this financing, as it tends to invest in the companies it does these deals with when spreading AI across different sectors. One such recent example was with Recursion Pharmaceuticals, Inc. (RXRX) for AI in drug development.  It looks like SPIR didn't really need this financing as it has enough cash and looks like it will be cash flow and net income positive in 2024. This financing was of a strategic nature, not something led by brokers to fund a com
Read more

CVNA Squeezing, ROOT and RXRX are Next

Image
Earlier today we stated that Root, Inc. (ROOT) and Recursion Pharmaceuticals, Inc. (RXRX) were next to squeeze after Carvana (CVNA). One month ago  we mentioned  the gamma squeeze potential on CVNA. Now that this is at hand and the stock has more than doubled, it's time to go long on two other heavily shorted stocks that stand to benefit from the CVNA squeeze as desperate shorts have to cover.  The strategy worked perfectly as ROOT increased 19% and RXRX increased 16% on the day while CVNA rose another 40%. This will be just the beginning as shorts are hemorrhaging on multiple related positions. If you look at the chart for the day, it becomes very clear how highly correlated these three stocks are right now. This is undeniably a sign that shorts, particularly algo HFT shorts are covering simultaneously held positions.  CVNA  made a $126 million investment  into ROOT and has embedded its insurance program into its systems. So any improvement in financial performance on CVNA implie
Read more