TYME Stock: TYME Technologies Heads up on COVID-19 News

Tyme Technologies Inc (NASDAQ: TYME) is screaming for the top in the market this morning, and for good reason. The company announced that it has been awarded a patent surrounding methods for treating COVID-19. Here’s what’s happening:

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Tyme Technologies Announces COVID-19 News

As mentioned above, Tyme Technologies is headed for the top in the market this morning after announcing that it has been granted a patent surrounding COVID-19. The patent, No. 10,905,698, protects methods of treating COVID-19 infection. 

In the release, TYME explained that unlike immune therapies that depend on the structure of the external virus coat of COVID-19, where the therapy directs its attack, TYME-19 is agnostic to this structure and any mutations to the viral coat. 

Ultimately, the treatment affects cellular metabolism. In doing so, it constrains viral replication after a virus has inserted its genetic blueprint into an infected cell by inhibiting the ability of the virus to use the cell’s synthetic apparatus to make viral proteins and lipids. 

As a result of this activity, it is believed that TYME-19 diminishes the ability of COVID-19 to hijack an infected cell. As a result the company intends to initiate the appropriate clinical trials and substantiate the safety and efficacy of TYME-19. 

Why Investors Are So Excited

This is exciting news for investors. After all, for a biotechnology company to be successful, it must create a treatment that works, get that treatment approved for commercialization, and perhaps most importantly, protect that treatment from competitors. 

With this new patent, no other biotechnology will be able to step on the company’s toes, competing with TYME-19. So, this patent protection is one of three key ingredients in the recipe to success for any biotech play, making it overwhelmingly exciting news. 

Is This the Next Big Short Squeeze?

With short squeezes being the hot topic of conversation on Wall Street, it’s natural to wonder if TYME stock will be the next big short squeeze, and many, including myself, believe that there’s a possibility here. 

These huge short squeezes are the result of a reddit group known as Wall Street Bets taking aim at hedge funds who short stocks, driving prices down. In particular, Wall Street Bets has announced that it will be going after biotech stocks under the idea that hedge funds should not short companies working to bring new therapeutic options to patients in need. 

Ultimately, TYME stock makes the perfect target. 

At the moment, the stock trades with tremendous short interest. In fact, the short volume ratio on the stock is a massive 28%. At the same time, the public float is just over 63 million shares, meaning that supply of the company’s shares is relatively low. 

If the group at Wall Street Bets were to take TYME stock on as a target, it wouldn’t take much for the group to cause tremendous gains, pushing the shorts out of their positions. 

What Analysts Think About TYME Stock

While TYME doesn’t have much analyst coverage, the coverage it does have is overwhelmingly positive. At the moment, there’s one Wall Street Analyst weighing in on the stock. 

That analyst has TYME with a rating of Buy and a price target of $9.50 per share, representing the potential for gains in multiples, even after the dramatic premarket run we’re seeing this morning. 

Risks to Consider Before Buying TYME Stock

If you plan on buying TYME stock, or any other stock for that matter, you’re going to have to be willing to accept risk; it’s all part of investing. In terms of Tyme Technologies, the most significant risks to consider include:

  • Pennies. TYME stock is a penny stock. As a penny stock, it experiences high levels of volatility, making entrance and exit decisions more difficult. Moreover, the company’s business model is not yet fully proven, making it a highly speculative bet. 
  • Clinical & Regulatory Risk. As a clinical stage biotech company, Tyme Technologies will have to prove its treatments work in the clinic and receive regulatory approval before marketing it to patients. Should any of this go wrong, significant declines are the likely result. 
  • Money. As a clinical-stage biotechnology company, TYME doesn’t generate any money. As such, the company must survive on the cash it has in the bank. If it can’t it will likely look to capital markets to raise funds, diluting value for existing shareholders and resulting in declines. 

Final Thoughts

While there are risks to consider before buying Tyme Technologies, there are risks to consider before buying any stock. The fact of the matter is that TYME seems to be on the right path here. 

With today’s news, the company can continue forward without any concerns that competition will come in and steal the company’s idea with regard to the treatment of COVID-19. That’s exciting news. 

This, combined with the potential for a short squeeze makes TYME stock hard to ignore.