Weekly Penny Stock Market Recap Aug 06 $XXII $DCTH $CYTR $TDW
Main stock indices Nasdaq and SP500 closed mixed. Russell 2000 lost most value and closed in red. When looking at main indices it seems that it can trade in a range for couple more weeks if no big volume or event will help them push indices higher or lower. In general bullish trend still holds.
$XXII – popped in my screener on Friday. The plot for this rise in price is actually very interesting. There are some rumors (as usual) that government is exploring idea to lower nicotine levels in cigarettes and such policy activation would benefit company like 22nd Century Group, Inc. ($XXII) which provides technology that allows for the level of nicotine and other nicotinic alkaloids in tobacco plants to be decreased or increased through genetic engineering and plant breeding.
Of course, the government only explores the idea to do this according to Bloomberg’s article. What is more interesting is that the main rise in price on Friday was followed by Bloomberg’s article (Article: https://www.bloomberg.com/news/articles/2017-08-04/tiny-biotech-s-tobacco-tinkering-makes-it-smoking-s-rare-winner?utm_source=yahoo&utm_medium=bd&utm_campaign=headline&cmpId=yhoo.headline&yptr=yahoo). If this rumor will become reality $XXII will benefit enormously, but as of now it is rumors – nothing else and if you interested in investing in this company better price should be available for you soon.
$DCTH – to give you an idea about the stock, it is very speculative stock and you should not trade this stock if you do not have any experience in trading penny stocks. No news only huge volume and a lot of bagholders. Nothing changed from my original coverage of this stock, it only lost in value.
$CYTR – this stock popped in my screener last Friday. After gap up I day traded it on Monday. Took my gains near 1$ mark while weekly resistance was too hard to break through and there was no real fundamental thesis behind continuation in the move to break 1$ mark. As well professional short sellers started appearing in the $CYTR Twitter feed so I did not need more confirmation to get out. Next day stock tanked and it continued in doing so till Friday. Will it regain its price which been traded on Monday? I do not think so, typical penny stock.
$TDW – there was much confusion with this stock while many chart providers showed more than 2000% gains in this stock. some people started to asking me how to find such stock:)
Of course, many people do not get the idea that stock gained only about 16% or so when looking intraday and actually is trading lower after article announcing emergence from bankruptcy started flying around the internet. What actually happened is that existing and new shareholders got new securities and this skewed chart. The reverse stock split was in play.