Oragenics Inc (NYSEAMERICAN: OGEN) is having a rough day in the market today. That wouldn’t be expected by looking at the monumental gains that we saw on the stock yesterday. Now, the big question is whether or not the dip is worth buying. Today, we’ll talk about:
- Why the stock was up yesterday and is dipping today;
- what we’re seeing form OGEN; and
- what we’ll be watching for ahead.
What’s Going On With OGEN
As mentioned above Oragenics had an incredibly strong day in the market yesterday, which is being followed by some pretty painful gains. Before you can decide whether or not to buy the dip, it’s important to know what’s going on. Here’s the reason the stock saw such tremendous gains:
It all started with flat trading and a low float. This is generally a recipe for a low float squeeze that could be triggered at the slightest movement upward, and that’s exactly what happened. With a low float and flat trading, the compnay provided a presentation.
On Monday, OGEN provided a presentation at The MicroCap Conference, centered around its candidate OG716, which in preclinical studies, has performed well. In fact, the treatment produced data that show that in vitro potency is equal to or superior to the current standard of care.
This presentation was provided at a key investor conference, and at these conferences, presenters have access to key figures in the investing space. In particular, OGEN had access to investors with deep pockets. I believe that the presentation led to a slight tick upward in the value of the stock. However, with the low float and flat trading mentioned above, that slight tick upward led to a low-float squeeze, pushing the stock higher.
Today, OGEN is simply correcting from highs. However, with the positive news and the company in the ear of high-end investors, I believe that the dip may represent a strong opportunity for gains ahead.
What We’re Seeing From The Stock
While I believe that the dip may represent an opportunity, I wouldn’t jump in right now as the stock is tumbling through its correction. As is normally the case, our partners at Trade Ideas were the first to alert us to the declines. At the moment (9:26), OGEN is trading at $2.34 per share after a gain of $1.23 per share or 34.45% 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 story surrounding the comapny’s OG716 asset as the treatment seems to be yielding positive results. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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