Oragenics Inc (NYSEAMERICAN: OGEN) is having an incredibly strong start to the trading session this morning. However, if you go digging for news, chances are that you’re not going to find any. The company has released no press releases and there are no mainstream outlets with the ticker in news. So, what’s the deal? 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, Oroagenics is having a strong start to the trading session this morning, but there is no news that would signal us to expect these gains. Nonetheless, we believe that we’ve found the reason for the gains. There are a couple of factors at play here.
First and foremost, OGEN has an incredibly low float, a high percentage of which was the result of short interest as of the close on Friday. One thing we know about low floats is that they create the opportunity for tremendous gains should the stock start to tick higher.
Last week, the company presented positive data from its lantibiotics program. In particular, the data came from its OG716product candidate. In preclinical studies, the treatment has shown an in vitro potency equal to or superior to current standard of care drugs that are designed to fight drug-resistant bacteria. The company also said that OG716 has superior safety, toxicity and stability profiles.
This became a recipe for gains. What we have here is a stock that traded relatively flat and had an incredibly low float with a decent amount of short interest. So, as the data came out, the stock started to tick upward. This has pushed the stock into a low float squeeze that’s leading to the tremendous gains we’re seeing in value today.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Oragenix, the news proved to be positive. While it has taken a couple of sessions to lead to a low float squeeze, that squeeze is taking place at the moment and I’m sure plenty of investors and traders are enjoying the benefits. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:15), OGEN is trading at $1.39 per share after a gain of $0.24 per share or 20.87% 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 the progress of the OG716 product as preclinical data seems promising. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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