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. 

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