Starting the day on a strong note, CorMedix Inc. (NYSEAMERICAN: CRMD) is already trading well into the green. However, I believe that early morning gains are only going to be the tip of the iceberg in this case as all signs seem to be pointing to a strong run ahead. Today, we’ll talk about:
- Why we believe that CRMD has the potential to fly from here;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
CRMD Is Gearning Up For Big Gains
As mentioned above, CorMedix is off to a relatively strong start to the trading session in the pre-market hours, but this may only be the beginning. The fact of the matter is that all signs seem to be pointing to a trading session of strong gains ahead.
First and foremost, option activity was pretty interesting on Friday. In fact, throughout the session, option volume on the stock was three times average. Moreover, the options that were being purchased were call options, representing nearly 100% of CRMD option activity on Friday.
While Friday proved to be a good day in the market for the stock, the last month has been relatively brutal for CRMD and its investors. The declines have brought the stock incredibly close to its 50-day EMA, which suggests that there’s going to be a strong level of support below. With options suggesting gains and the stock trading near a hard support level, this thing has the ability to run from here.
Fundamentally, The Stock Gets Even More Interesting
From a fundamental standpoint, there’s quite a bit to look forward to. In particular, the LOCK-IT-100 trial has a catalyst ahead. The trial was designed to assess the efficacy and safety of Neutrolin, an experimental treatment for the prevention of catheter-related bloodstream infections in subjects receiving hemodialysis therapy as a treatment for end stage renal disease.
CorMedix recently announced an indpendent analysis of the first 28 confirmed cases, which was undertaken in July of this year. The results of the analysis were then presented to the Data Safety Monitoring Board. The data showed that the CRMD treatment reduced bloodstream infections by 96% and thrombosis by 96.7% when compared to historical benchmarks. As a result of the strong efficacy, the DSMB recommended that the trial be stopped and results brought to the FDA. The last update on this story was that the company was in the process of submitting the analysis to the FDA. Any update on the FDA’s views associated with this analysis could lead to dramatic gains, and that catalyst might just be closer than we think.
What We’re Seeing From The Stock
With strong technical signals coming out of the CoreMedix chart, traders are getting on this one early, hoping to take advantage of what may be an incredible run throughout the session. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (6:58), CRMD is trading at $1.35 per share after a gain of $0.08 per share or 6.30% 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 CRMD. In particular, we’re interested in following the company’s continued work to develop Neutrolin as the treatment seems to be yielding overwhelmingly positive results. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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