Penny Stock VLRX Pops on CBD Study Results

VLRX and MNTA are two healthcare stocks to monitor today

Jul 30, 2019 at 9:47 AM
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One stock making a notable move this morning is Valeritas Holdings Inc (NASDAQ:VLRX), which is gaining 13.2% to trade at $2.83, thanks to news the company used its proprietary h-Patch technology to effectively deliver cannabidiol (CBD) subcutaneously. The news could help VLRX shares gain some attention on Wall Street, where right now only two analysts are in coverage -- though they're quite bullish, based on the average price target of $13.

From a broader view, Valeritas stock has done nothing but slide on the charts this year after trading above $30 in late 2018, sporting a year-to-date deficit of more than 60% through last night's close. Even with today's gains, the shares are sitting below the 50-day moving average that has acted as resistance in recent months.

Another healthcare name making moves today is Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA). The Food and Drug Administration (FDA) granted the company's treatment for hemolytic disease of the fetus and newborn (HDFN) fast track designation. This news has the shares up 2.2% at $10.87, as they try to battle back from their three-year low of $9.51 from last week. Year-over-year, MNTA as given back 63%.

There's a notable setup in the options pits, too, even though Momenta sees light volume on an absolute basis. Still, the Schaeffer's put/call open interest ratio (SOIR) of 2.41 ranks in the 98th annual percentile, showing that those who have speculated on MNTA with short-term contracts are unusually put-heavy at the moment.

 

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