Health and Healthcare

Chelsea Therapeutics Rally -- Speculation or Desperation?

Chelsea Therapeutics International Ltd. (NASDAQ: CHTP) is rallying on Wednesday after a report in Seeking Alpha called its Northera, a treatment for symptomatic neurogenic hypotension in Parkinson’s patients, a shoe-in for approval, along with the note that shares could rise 100% from here.

Note that the article’s writer does own shares of Chelsea Therapeutics. That always makes for an interesting argument, even when you disclose that you are in fact talking up your book.

Chelsea shares are up almost 9% at $2.01 so far this morning. However, this is a mere $134 million company by market cap. The 52-week trading range is $0.70 to $4.21, and shares have traded all over the place, from $1.50 to about $7 since 2005. Nearly 4 million shares have traded hands today, versus an average daily volume of just under 1.5 million shares, so this is already within striking distance of a 200% alert above normal daily trading volume.

This stock does trade stock options, but the open interest is rather thin for the April, May and June expirations. At $2.00, some traders would argue that the stock is already trading like an option.

Chelsea is one of those companies that should be called unsuitable for widows and orphans.

Is Your Money Earning the Best Possible Rate? (Sponsor)

Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.

However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.

There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.