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

Lightly traded, small float penny stocks have been on major runs this week. On Monday, FNHC was the big winner, running to as high as $0.69 from $0.12 the previous day. BTB and CNXA were the big winners on Tuesday, both running well in excess of 100%. On Wednesday, CRKN was the big winner, more than doubling at its high. Finally, today STAB was the one that doubled. FNGR has been on a multi-day run, leading to a 10-bagger for those who bought near the bottom. 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. Particularly since STAB made a run today, so the trading opportunities are starting to head towards biotech. We saw a glimpse of what can happen as it shot up 10% in the last five minutes of trading today. PHAS 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. So there are fundamental reasons to believe that a rebound is coming, not just technical ones. 

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, with today being the first day it traded less than a million shares. An increase in price on falling volume is a good sign that the stock has bottomed and is ready to turn back up. Before PHAS tanked, it was trading about 100,000 shares a day. Similar to all the other stocks that have spiked recently. 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:

PHAS shares outstanding and float fits in very well with fellow biotech runner STAB and sustained runner FNGR. While its short interest is nearly double that of STAB. None of the other stocks have much short interest to speak of, so PHAS can benefit from a mini-short squeeze. 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 up on Tuesday 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 because it has light volume on quiet days.