Ibio Inc (NYSEMKT: IBIO)
In very rare cases, I like to take a look at stocks that trade for under a dollar per share to see if they are providing solid opportunities. Today, I decided to look into Ibio; I was glad I did. While Ibio is still trading for pennies, it seems as though the stock has quite a bit of upside potential, and investor sentiment surrounding the stock is improving. So today, we’ll talk about what Ibio is, why I believe the stock has upside potential and what we can expect to see moving forward.
What Is Ibio
Ibio is a company in the biotech arena that has a keen focus on platform technologies designed for vaccines and therapeutic proteins. Currently, the company’s technologies include iBioLaunch and iBioModulator. Through the use of these platforms, the company is in the process of developing product candidates that are designed to target hemagglutinin type 1, H1N1, swine-like influenza, hemagglutinin type 5, H5N1 avian influenza, yellow fever and anthrax. While the company currently has no approved products, their work in defining candidates is becoming very exciting for investors looking for an opportunity.
IBIO Investor Sentiment Shows Positive Signs
We all know that in the stock market world, investors call the shots. When the overall sentiment among investors is that the stock will rise, it becomes a self-fulfilling prophecy and the stock climbs. Adversely, if the overall investor sentiment it that the stock will fall, this self-fulfilling prophecy drags the stock down. Currently, IBIO is showing signs that investor sentiment is improving; that’s based on short interest. Essentially, when a high volume of shares are sold short, it tells us that investors believe that the value of the stock will fall. In the month of September, we saw declines in short interest surrounding IBIO. On September 15th 2,275,838 shares were sold short. However, by September 30th, that number had fallen by 2.1% to 2,227,212 shares. That’s a great sign for the stock.
IBIO Has A Promising Candidate
Finally, IBIO has been working on the Phase 1 study of a vaccine that could put the company on the map relatively soon. The study is a dose escalation, first-in-human study designed to evaluate the safety of purified, plant-derived Pfs25 VLP in combination with Alhydrogel adjuvant. It is hoped that this will prove to be a safe and effective vaccine for malaria. The study was first started back in 2013 and I’m expecting to see results from the study relatively soon.
What We Can Expect Moving Forward
When talking about low value stocks with no approved products, things can really go either way. However, considering the strengthening investor sentiment and the fact that the company is working diligently on a Phase 1 study which should result in positive news relatively soon, I’m expecting to see gains from IBIO.
What Do You Think?
Where do you think IBIO is headed and why? Let us know in the comments below!
[Image Courtesy of SciTechDaily]