Flex Pharma Inc (NASDAQ: FLKS) is having an incredibly strong start to the trading session this morning. However, if you go digging for press releases or SEC filings offered by the company, you’re not going to find any. Nonetheless, we believe that we’ve found the reason for the gains. Today, we’ll talk about:
- Why FLKS is headed up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why FLKS Is Climbing
As mentioned above, Flex Pharma is having an overwhelmingly strong start to the trading session this morning, but there has been no news released by the company. So, what’s the deal?
It seems to have to do with a potential delisting of the stock from the NASDAQ. On September 27, 2018, the company issued an SEC filing informing investors that it may be delisted from the NASDAQ due to failure to maintain a minimum bid price of $1.00 per share.
Recently, we’ve seen some movement in FLKS that has pushed it closer to that $1.00 mark. However, in the pre-market this morning, the stock broke through this key point, which we believe led to excitement that kept the stock screaming for the top. After all, if the price stays above $1.00 per share, delisting concerns fade and the company will maintain its listing on the NASDAQ, a very important factor for the company.
It’s also worth mentioning that a quick look at the company’s balance sheet shows that it is debt free and growing fast. Recent reports surrounding the debt freedom at FLKS may have been the reason for the beginning of this run.
What We’re Seeing From The Stock
As delisting concerns fade, investor excitement is running on highs. That can be seen through the movement in the value of the stock this morning. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:00), FLKS is trading at $1.14 per share after a gain of $0.20 per share or 20.53% 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 FLKS. In particular, we’re interested in following the price action to see if the stock does maintain the $1.00 or better minimum price bid for the next 30 consecutive days. We’re also interested in following the company’s finances to see if it can maintain its debt freedom. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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