Health and Healthcare
Chelsea Therapeutics Rally -- Speculation or Desperation?
Published:
Last Updated:
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.
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.