Titan Pharmaceuticals, Inc. common stock (NASDAQ: TTNP) is on an exciting run at the moment, making its way for the top early on in today’s trading session. While the gains are impressive as is, the stock may fly far further today, so this is going to be one to watch. Today, we’ll talk about:
- Why TTNP is headed up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why TTNP Is Flying
Just under a month ago, it seemed as though new life was breathed into Titan Pharmaceuticals after a dramatic fall in value a few weeks earlier. The new breath of life came from an announcement that Knight Therapeutics made, stating that PROBUPHINE was commercially available. The treatment, designed for the management of opiod dependence in patients clinical stabilized on no more than 8 mg of sublingual buprenorphine, was licensed to Knight Therapeutics for commercialization in Canada.
With the stock trading on lows before the announcmeent, the news that the company’s treatment would be hitting the market in Canada led to a dramatic run, and the stock has been relatively volatile since. While the stock saw a dramatic run for the top on the announcement of commercialization, that run led to a flood of short interest. In fact, according to ShortSqueeze.com, short interest on TTNP has climbed by around 148% as of late. So, needless to say, short interest on the stock is high at the moment.
With that in mind, what happens when a stock that is shorted heads up? Well, those that shorted the stock start to lose money. If the value of the stock goes too high, shorts start to abandon their positions with a goal of limiting losses due to the run. This is known as a short squeeze. Well, the truth of the matter is that TTNP may be lining up for a strong short squeeze, and with such an increase in short interest on the stock as of late, there may be quite a bit of ship abandonning from the short side that has the potential to propel the stock to new highs.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that short interest is well worth tracking. After all, high short interest on a stock that has the potential to head up could lead to a short squeeze and tremendous profits. That’s exactly what I believe is happening with TTNP today. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:14), TTNP is trading at $0.49 per share after a gain of $0.11 per share or 29.92% 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 TTNP. In particular, we’re interested in following the story surrounding the Canadian sales of the company’s PROBUPHINE product as the treatment could generate revenue for the company down the line. We’re also watching to see how far this short squeeze pushes the stock up. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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