Pernix Therapeutics Holdings Inc (NASDAQ: PTX)
Pernix Therapeutics is having a strong start to the market today. The big gains we’re seeing in the market today are the result of a recent SEC filing in which investors learned that three members of management are no longer working for the company. Today, we’ll talk about the filing, how the market reacted to the news, and what we can expect to see from PTX moving forward. So, let’s get right to it…
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PTX Shakes Up Management
As mentioned above, Pernix Therapeutics is having an incredibly strong day in the market today following an SEC filing that became public yesterday. In the filing, investors found that three members of management are no longer employed by the company. Those management members include:
- Sanjay Patel – Mr. Patel served as the Chief Financial Officer at the company. He started in this position on June 23rd, 2014. However, it was announced that as of July 20th, Sanjay is no longer employed by PTX.
- Terence Novak – Mr. Novak served as the Chief Operating Officer for the company. His position started on March 9th, 2014. However, it was announced that his employment at the company came to an end on July 22nd.
- Barry J. Siegel – Finally, Mr. Siegel served as the Senior Vice President and General Counsel at PTX. His employment with the company started on May 31st, 2014. However, it was announced that his employment with the company came to an end on July 25th.
How The Market Reacted To The News
As investors, one of the first things that we learn is that the news moves the market. Any time positive news is released with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with the company. Adversely, negative news will generally lead to negative moves in the market. In this particular case, it’s clear that investors view the news as positive. As a result, we’re seeing gains in the value of Pernix Therapeutics stock today. Currently (12:23), the stock is trading at $0.58 per share after a gain of $0.03 per share (5.66%) thus far today.
What We Can Expect To See Moving Forward
If you’ve followed my writing recently, you know that I’ve maintained a relatively bullish opinion of what we can expect to see from PTX. While I will admit that yesterday’s news was a shocker, it does not change my opinion of the company. In fact, we were told that something like this might happen. Recently, when the company announced that it is restructuring, it did say that several members of the administration team would also be leaving the company. All in all, this is likely a positive thing that will save the company a good bit of money as they traverse the path leading to the new Pernix.
However, restructuring is only one of the reasons that I maintain a bullish opinion on PTX. At the end of the day, the company seems to be making all of the right moves at the right time. They are improving their intellectual property, they’ve shown exceptional results in a recent sleep study, and they are restructuring to become more efficient. Not to mention, the incredibly strong institutional backing we see from the company. At the end of the day, PTX is likely to climb much, much higher in my opinion.
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What Do You Think?
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