Oragenics Inc (NYSEAMERICAN: OGEN) is having yet another incredibly strong start to the trading session in the pre-market hours this morning. Again, the gains come with no real news being released. Nonetheless, we believe that there’s a good reason for the movement. Today, we’ll talk about:
- Why OGEN is headed up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why OGEN Is Headed Up
As mentioned above, Oragenics is having an incredibly strong start to the trading session this morning, following up on the gains that we saw yesterday. However, there’s no news that has been released by the company this morning. So, what’s the deal? Well, there are a few factors at play here:
First and foremost, OGEN has traded flat with a low float for some time. A decent percentage of that float was short interest, so at any reason for gains, a short squeeze would be triggered and the gains would be massive. That’s exactly what happened. But what triggered the short squeeze. Again, there has been no news.
From this point forward, the truth is that all we can do is speculate. Nonetheless, we know that last week, the company presented positive data from its lantibiotics program. In preclinical studies OG716 produced data that suggest in vitro potency equal to or superior to the current standard of care.
OGEN also presented yesterday at The MicroCap Conference and is scheduled to present today at the Ladenburg Thalmann 2018 Healthcare Conference. These conferences provide incredible access to institutional investors, bankers, and others with deep pockets. Considering the low float and short interest, all the company had to do was impress a few to get the stock moving up and trigger a short squeeze. I believe that this has been accomplished with another potential catalystic presentation scheduled for today.
What We’re Seeing From The Stock
While Oragenics hasn’t released any news in particular, we believe that the investor conferences are leading to a positive outlook for the company and its investors. This, combined with technical data that suggested a coming squeeze has led to the monumental gains that we’re seeing in the stock this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the movement. At the moment (8:47), OGEN is trading at $2.10 per share after a gain of $0.50 per share or 31.25% 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 OGEN. In particular, we’re interested in following the continued development of OG716 as the candidate is showing some promise. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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