Cellceutix Corp (OTCBB:CTIX) With Another Volume Spike
Back in July, Cellceutix Corp (OTCBB:CTIX) was pushed towards the higher end of the charts following a couple of, we reckon, overly optimistic articles published on Seeking Alpha. A few contributors wrote about significant events, uplisting on national exchanges and generally expressed quite a positive opinion about the company. The ticker flew to around $2.30 at one point, but it was clear that the pressure was getting too much.
Predictably, by the beginning of August, it had fallen below the $2 mark, but, while other penny stocks would have continued sinking towards the bottom, CTIX managed to sustain a relatively steady performance. In fact, for the last month and a half, it has occupied the range between $1.90 and $2.08 quite happily and there have been virtually no deviations from the norm. The question on everyone’s mind is: “When will it manage to break free from this field?”.
Well, they do seem to be trying hard. They recently announced that they have acquired substantially all of the assets (but none of the liabilities) of the now bankrupt PolyMedix, Inc. (OTCMKTS:PYMXQ) and they seem really happy with the addition of some new products to the pipeline. They also said back in August that the clinical trials of the Psoriasis treatment are about to commence which means that, unlike other small cap ventures, they have actually managed to stick to their plans (the latest 10-Q states that the trials were scheduled to start in in Q3 of 2013).
In the same press release, they announced that the Kevetrin (which is the product that draws the attention of investors the most) development is going along nicely and they did say that they want to list their shares on one of the national stock exchanges. CTIX seem reluctant to provide us with any sort of deadlines, but, on the other hand, maybe that’s a better idea compared to coming up with a schedule and then failing to stick to it. All in all, there’s some good news and yet, the ticker refuses to embark on a more continuous ascend.
This maybe due to the fact that even within the $1.90 – $2.10 range, the market cap is still quite big. Although they appear to have some signs of long-term potential, a market value in excess of $180 million is still a bit of a stretch for a company that, according to its latest 10-Q has around $7 million in working capital deficit, no revenue and a quarterly net loss of around $866 thousand.
Another reason for the rather limited and unpredictable chart movement could be the increased awareness provided by the Seeking Alpha (SA) articles coming out every now and then. The last couple of weeks prove that CTIX is not the most volatile penny stock out there but it is still a penny stock and as such, it is prone to be affected by more and more people talking about it. A large portion of the contributors who authored the SA coverages disclose that they have long positions in the ticker and we can understand that they’re confident in the company’s future success. Still, we’re not sure if the long-term effects of raising awareness will be all that great.
One thing is for sure – a CTIX investment is anything but risk-free. Many enterprises have attempted to develop a cancer treating product and many have failed. Like any other research and development company, there can be absolutely no guarantees that all the trials will be passed with flying colors. What’s more, while the addition of PYMXQ‘s product line could potentially give one or two more sources of revenues in the future, it will mean some extra expenses in the shorter term. All in all, there are quite a few things that could put a spoke in CTIX‘s wheel and it is absolutely vital that you consider all the dangers before putting your hard-earned money in the stock.
On the bright side, despite the progress that the company talks about in its press releases, the paid pumpers seem reluctant to initiate a promotional campaign. Other small cap ventures like Alkaline Water Company Inc (OTCBB:WTER) and Media Analytics Corp (OTCBB:MEDA) are currently undergoing this treatment and you can see from the chart on the right how bad the consequences can be.