Catalyst Pharma, TherapeuticsMD May Be Next WallStreetBets Targets

By Douglas A. McIntyre Published Jan 29, 7:37AM EST

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Catalyst Pharma, TherapeuticsMD May Be Next WallStreetBets Targets — © PeopleImages / Getty Images

Now that AMC, GameStop, American Airlines and Bed, Bath & Beyond have been pushed to wild levels, well above any sane valuation, the question is which companies will be the next to be “recommended” by members of the WallStreetBets message board on Reddit and traded heavily through online brokerage firm Robinhood. A few troubled companies with low share prices fit the profile and are already favorites of Robinhood traders.

First on the list is Catalyst Pharmaceuticals Inc. (NASDAQ: CPRX). The tiny biopharmaceutical company has been embroiled with a lawsuit against the U.S. Food and Drug Administration. It had very modest revenue of $29 million in the last recorded quarter. The company is in the midst of trying to gain patents, an uncertain process. Its stock has sold off over the past year. There is enough of a market in the stock so that it trades about 1.5 million shares a day. This stock is listed as among the 100 most popular on Robinhood. It has 10 million shares sold short, which would take six days to cover.

TherapeuticsMD Inc. (NASDAQ: TXMD) is down 36% so far this year, and it trades over 5 million shares a day. Its total revenue is a tiny $19 million. It lost $32 million in the most recent quarter. It has over 66 million shares sold short, which would take 13 trading days to cover. It is also among Robinhood’s 100 most popular stocks. In other words, it is already on trader radars.

Investor Place recently mentioned other stocks that might be targeted. These included Ligand Pharmaceuticals, FuboTV, Macerich and SunPower.
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What is certain about the “next” GameStop is that it will be hit fast and hard. That has been the pattern so far. Shorts will need to cover as buyers pour in. Maybe Robinhood will restrict trading and drive their prices down as fast as they came up.
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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.