They say that there’s no such thing as a perfect case scenario. But “they” never met people who buy penny stocks. Day in and day out we find these small companies doing big things. In return, the market shows gains that are upward of 100%. But today, the true power of penny stocks showed itself in one small biotech company.
What Happened to Provention Bio (PRVB)
Just one trading-day ago Provention Bio (PRVB Stock Report) was a penny stock. The company closed out the June 7 session at $4.35. When it comes to penny stocks to buy, PRVB stock may have been on your penny stock watchlist for a few weeks. The reason being is that after crashing to lows of $2.91 in early May, the trading volume and stock price have been slowly but surely on the rise. But what happened today is the “stuff of legend.”
Penny Stock News Sends This Stock Soaring
We always talk about how penny stock news can help propel a stock. Sure, that boost can return double your money if you’re lucky. But today’s news gave investors more than 4x on their money. Shares hit a high of $22.82 during the morning session. The move equated to a jump of 425% since Friday’s (June 7) closing price of $4.35. So what was announced?
Over the weekend, Provention reported results from its National Institutes of Health (NIH)-sponsored “At-Risk” Study were published on0line in The New England Journal of Medicine. They showed that a single 14-day course of PRV-031 “significantly delayed the onset and diagnosis of clinical T1D for a median of 2 years in children and adults. This was compared to a placebo.
“This groundbreaking study demonstrates that we can use immunotherapy, specifically PRV-031 (teplizumab), to prevent or significantly delay the onset of clinical type 1 diabetes by at least two years in individuals who will almost certainly progress to clinical disease.”Dr. Eleanor Ramos, Provention’s Chief Medical Officer and Chief Operating Officer
How Does The Future Look For This Penny Stock?
After that, shares promptly gapped up during premarket trading and didn’t stop until reaching highs of nearly $23! The resulting pullback was aggressive. Shares dropped below $14 by the end of the day.
This was obviously bad if you bought PRVB above $14 but still pretty great if you picked up shares when PRVB was a penny stock. Will it drop back levels to meet the definition of a penny stock or can PRVB stock keep moving higher?