March 8, 2017
By Mark Terry, BioSpace.com Breaking News Staff
A 100% return on investment sounds like a great deal. And from time to time, it actually happens with an amazing overnight stock jump. Examples include Stone Energy Corporation (SGY) jumping 300 percent in a single day, DryShips (DRYS) and EnterMedics (ETRM) that had short-term gains of anywhere from 300 to 1000 percent. Wayne Duggan, writing for InvestorPlace, offers up three biotech stocks that he thinks might double overnight. Just be warned, they’re all risky.
Based in Rancho Cordova, Calif., Cesca Therapeutics has created a suite of BioProcess technologies used in Bio-banking and the regenerative medicine market. Its product lines include the AutoXpress Platform that concentrates the blood’s buffy coat and isolates it from plasma and red blood cell fractions, and Cryopreservation-Bioarchive, a fully robotic storage and retrieval system for cryopreserving stem cell samples.
Duggan writes, “KOOL stock has a miniscule float of only about 1.5 million. However, it has a huge short interest of about 29.3 percent of float. That number is up from about 26 percent since January.”
Cesca is currently trading for $2.89.
Headquartered in Madison, Wisc., Cellectar Biosciences develops phospholipid ether-drug conjugates (PDCs) for oncology treatments and diagnostics. On February 27, Cellectar provided an update on its Phase I trial of CLR 131 in patients with relapsed or refractory multiple myeloma. The data showed the drug was safe and well tolerated and that adverse events were consistent with previous cohorts. In addition, all four patients in Cohort 3 achieved stable disease and continued to have progression-free survival (PFS) and median overall survival (mOS) in line with expectations.
Duggan writes, “CLRB stock currently has a very small float of only 3.2 million shares. At the same time, its short percent of float is 39.5 percent, which is extremely high. With a setup like that one, CLRB doesn’t need to cure cancer to double in a day or two.”
Cellectar is currently trading for $2.47.
Based in Marlborough, Mass., RXi Pharmaceuticals is a clinical-stage RNAi (RNA interference) company focused on significant unmet medical needs. Its proprietary sd-rxRNA technology allows the company to design chemically-modified RNAi compounds that are more potent, stable and specific than with other technologies. On January 9, the company completed the acquisition of Mirimmune, a private firm focused on developing next generation immunotherapies for cancer treatment.
Duggan writes, “RXII stock currently has a float of only 3.2 million. At the same time, its short interest is an extremely high 35.3 percent of float.”
RXi is currently trading for $0.76.
Duggan writes, “Of course, the common theme among all these stocks is that the big moves are short-term trading opportunities and nothing more. Since peaking at $2.93 less than four months ago, RXII stock is down roughly 80 percent. Clearly, timing is a critical part of capturing the huge short squeezes in these types of stocks. Fortunately, when a stock is up 100 percent or more in a single day, your timing doesn’t have to be perfect to capture major gains. You must make sure that if you buy any of these stocks, however, that you remain diligent.”
