Pain Therapeutics, Inc. (NASDAQ: PTIE) is having an incredibly rough start to the trading session this morning, coming off of the gains the stock saw in the market yesterday. Nonetheless, if you’re looking for a dip to buy, this is likely it. Today, we’ll talk about:
- Why the stock climbed yesterday and is falling today;
- why this is a dip that’s likely worth buying;
- what we’re seeing from PTIE stock; and
- what we’ll be watching for ahead.
What’s Going On With PTIE
Yesterday, Pain Therapeutics had a great day in the market after the company announced that it would be holding an investor conference call this morning at 9:00 AM Eastern. With a strategic update on the horizons, investors were excited about what they were going to find out. However, after dramatic gains in the market yesterday, the stock is settling down today, creating what I believe to be an opportunity.
Aside from the fact that a strategic update is only minutes away, the company released more positive news this morning that suggests that the dip is a good one to buy. In a press release issued early this morning, PTIE said that it has been awarded a research grant from the National Institutes of Health in the amount of approximately $3.5 million. The grant was provided to support a Phase II program, assessing PTI-125 in Alzheimer’s disease. In a statement, Remi Barbier, CEO at PTIE, had the following to offer:
We are once again grateful to the NIH for its support of our clinical program around PTI-125… NIH has long been a champion of innovative new science that stands up to rigorous, peer-reviewed evaluation and that has potential to benefit human health in areas of unmet needs, such as Alzheimer’s.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dive into the market is that the news leads to moves. In the case of Pain Therapeutics, the news proved to be overwhelmingly positive. Not only will investors be receiving a strategic update in minutes, the company has been awarded a grant. While the stock is falling in the market this morning, I believe that the declines could be an opportunity for the gains that will come as a result of the update and today’s grant news. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:33), PTIE is trading at $2.34 per share after a loss of $0.56 per share or 19.31% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on PTIE. In particular, we’re interested in the news that will be released in the investor conference call as well as the company’s continued development of its robust pipeline. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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