Creative Medical Technology (CELZ) Stock: Here’s Why It’s Up

Creative Medical Technology Holdings Inc (NASDAQ: CELZ) is flying in the premarket hours on the first trading day of 2022. The stock is up over 50% and the trading volume is already ridiculous. So, the big question on everyone’s mind seems to be, “Why is the stock flying?”

Here’s what’s going on:

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CELZ Stock Is Climbing

As mentioned above, Creative Medical Technology Holdings stock is flying in the premarket hours this morning, gaining more than 50% on tremendous volume before the opening bell. So, why is the stock climbing?

There’s no way to be 100% sure due to the fact that there has been no company-specific news released. No press releases, SEC filings, interviews, or anything of the sort have hit the tape.

However, one thing that we have noticed quite a bit of is chatter on social media. On several social channels, traders are talking about what they view as an opportunity to dive in on an undervalued stock with a low float. 

Low floats, like what we see from CELZ make things interesting because they point to supply and demand, the primary factor that causes movement in the stock market. When there’s a low float, it means that few shares are available to the public. So, if the public dives in heavily, the stock has no choice but to go up as the supply of shares is significantly outweighed by the demand from the trading community. 

However, I would like to say that if you jump on this trend, it’s best to do so with caution. 

The stock was recently featured on PennyStocks.com, which many may view as a good thing. However, reading the disclaimer on the website raises some eyebrows. The site is a pay-for-play site that often promotes extremely low-quality penny stocks. Over the past couple of years, we have noticed that they’re good at what they do, driving volume and price appreciation for the issuers that pay them on a short term basis. 

Unfortunately, this is a dangerous notion for the trading community. 

The fact of the matter is that when the paid promotion is over, many of the stocks featured on this pump-centric outlet realize dramatic declines, which could result in a significant loss of capital for the traders that get involved. 

While the website’s disclaimer doesn’t state that CELZ paid for a promotion, the company doesn’t seem to list any of the issuers that pay for play, and there’s a good chance that Creative Medical Technology is one of them.

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The Bottom Line

The bottom line here is simple. Is there an opportunity to make money with CELZ? Sure, even if what we’re seeing is a pay-for-play promotional scheme, the dramatic movement in the stock opens the door for opportunity. However, considering the stock’s standing in the penny category and the aggressive promotions the outlet featuring it has been part of in the past, this is a very risky play that could result in countless investors holding the bag as those in the know take their profits. So, if you’re thinking about diving in here, please be careful!  

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