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Penny Stock Spikes Again on DSMC Review

The stock just saw its best quarter in at least 10 years

Digital Content Manager
Apr 2, 2019 at 9:59 AM
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Medical Research stock Achieve Life Sciences Inc (NASDAQ:ACHV) is seeing yet another bounce today, after the independent Data Safety Monitoring Committee (DSMC) gave the company's anti-smoking treatment, cytisinicline, a positive review in the phase 2B trial for the plant-based alkaloid. More specifically, the DSMC said it didn't find any safety concerns or issues with the study. As a result, the stock is up 10% at $3.50 in early trading. 

Since February, ACHV stock has gapped higher twice, and just came off its best quarter in over 10 years, with a 166.9% gain. The security found subsequent support at the 160-day and 200-day moving averages with each pop -- two trendlines the stock hadn't finished north of since July 2017. However, the equity has yet to conquer the $4 area on a closing basis, which has acted as an area of pressure during its two recent spikes on the chart. 

Only one analyst has chimed in on the penny stock, but deemed it a "strong buy" rating. Meanwhile, short sellers are still swarming. Short interest has roughly doubled in recent reporting periods, and the shares sold short now represent a solid 9% of the stock's available float -- a potential catalyst for more tailwinds, should these bearish bets begin to unwind. 

 
 

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