Momentum traders are having a field day with ENZN today as the stock climbs dramatically. However, what was it that caused the climb, how long is the climb likely to last, and have the best opportunities for gains been missed? We’ll discuss all of that below!
What Was It That Caused ENZN To Climb So Dramatically?
In my opinion, the real question should be… What was it that caused the stock to fall so dramatically. Yesterday, Enzon Pharmaceuticals saw massive declines toward the end of the day and in after hours trading. In a search on both Google News and Bing News, I was only able to find one major story. As of today, Enzon Pharmaceuticals will begin trading ex-dividend after a cash dividend payment of $0.50 per share was paid yesterday. No matter what the reason for the after hours decline, it is spurring great activity in the market today.
The fall after hours yesterday sent ENZN down in a big way. However, we know that price movements in the market generally happen through a series of overreactions. Therefore, it’s natural that after a dramatic decline, we see dramatic gains; which is exactly what’s happening today.
Have The Best Opportunities Already Been Missed?
I did a quick search through StockTwits and it seems as though there were several investors that weren’t very happy to miss a couple of great exit opportunities. So, have the best opportunities already been missed. In my opinion, the answer is yes. ENZN climbed to $1.30 per share earlier today; and I think that’s the only time we’re going to see it today. My personal opinion is that while the stock is likely to reach $1.24 per share at least once more today, I don’t think it’s going to go any higher.
What Do You Think?
Do you think that the best opportunities have already been missed? Let us know in the comments below!