Sologenix, Inc. (OTCBB:SNGX) Stuck at $2
Sologenix, Inc. (OTCBB:SNGX), a promising pharmaceutical ticker, is having a bit of trouble jumping over the $2 mark. For three days, buying has outspaced selling, but still there are competing forces working on the stock. SNGX added a bit more than 3% to stand exactly at $2, on volumes of above $298,000. After a good run, SNGX is taking a breather, possibly expecting a correction.
But underneath, SNGX is promising amazing sales, capitalizing on one of the strongest market forces- fear and panic. SNGX specialzies in producing agents against widespread threats, including radiation, biological weapons and toxins. If a nation decides to stockpile some of the promised solutions, this could mean fast and large revenues for SNGX.
It boggles the mind why SNGX is not rising faster, except that the revenues are for now hypothetical. SNGX was given a price target of $4.50, or up to $5. SNGX has been as high as $7 before the downlisting in 2011. And it has not been promoted since the summer of 2011-all its gains in 2013 happened naturally on the development of treatments and vaccines that aim to solve global, unexpected threats.
SNGX expects eight total drug approvals, and the first one is to arrive this quarter. In case of good news, the climb could only continue. Still, SNGX is not immune to the effect of sudden negative comments. The ticker may be somewhat protected by the $26 million contract, a significant sum for a low-float, small company.
The new week will show if SNGX lives up to expectations. Another well-liked ticker, NanoViricides, Inc. (OTCMKTS:NNVC) was making the rounds with a robust, self-propelled climb. After the fallout around September 10th, NNVC sprung back again, to post-split prices nearing $6, opening with a strong gain on Monday.
Elite Pharmaceuticals, Inc. (OTCBB:ELTP) is another strong contender, which is at around 15 cents, a peak it has not visited for years. But the gain was minor on Friday, and the new week opened with selling and a minor drop in prices.
The only problem for SNGX is that it has to rely on extraordinary events and threats. Some of its vaccines and anti-toxins may be stockpiled in anticipation, but this is also a hypothetical. While SNGX is extraordinary in its qualities, it is still best to avoid investing, unless one can absorb the corrections that happen when a ticker hangs at a high peak.