Precipio Inc (NASDAQ: PRPO) has been heavily shorted in recent times. However, those that made the short bets are eating their socks at the moment! After the company issued news last week, the stock has started to run for the top.
The truth of the matter is that the gains that we’ve seen thus far may just be the beginning. Today, we’ll talk about:
- What led to the break for PRPO stock;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why PRPO Is Rocketing
As mentioned above, the shorts have had a hold on PRPO as of late. However, that seems to be changing, and in a big way. Ultimately, the change has to do with news that was released late last week, giving the bulls the upper hand.
In a press release, PRPO said that its HomeScreen assay has been selected by Methodist Hospital for use in molecular hematology testing. This is great news, not only for the company, but for the hospital. After all, results in this testing took 2 to 4 weeks in the past. With the HomeScreen assay, it will only take 2 to 4 days for the hospital to receive results.
In a statement, Ilan Danieli, CEO at PRPO, had the following to offer:
The rapid adoption of HemeScreen demonstrates the validation of our business model as both a clinical laboratory and an incubator for new technologies which we are able to successfully commercialize.
By dealing with real-life problems encountered daily in our lab, we are able to identify, file for patent, develop, and then test various technologies, ultimately selecting the winning ones to bring to market. HemeScreen is an example of a technology that has traveled from an idea in our lab last year, to a growing revenue contributor in 2019.
The truth of the matter is that the gains are likely just the beginning. So far, the stock has broken through one strong resistance point and is sitting at another. Should it break above $0.22, the next stop is $0.26, and I don’t see that being unreasonable. Moreover, as shorts get squeezed, the stock could fly far higher!
What We’re Seeing From The Stock
As investors know, the news moves the market. In the case of Precipio, the news proved to be positive last week, leading to gains. As the stock climbed further, shorts started to lose their shorts (pun intended), leading to exits of short positions and a dramatic run in value today so far.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:12), PRPO is trading at $0.22 per share after a gain of $0.068 per share or 46.14% thus far today.
Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on PRPO. In particular, we’re interested in following the story surrounding the company’s continued work to expand the use of its HomeScreen assay, especially with a big hospital like Methodist in Memphis under its belt. We’re also watching for continued gains as shorts get squeezed. Nonetheless, we’ll keep an eye on the story and bring the news to you as it breaks!