In the Summer of 2021 it’s a bit startling to see how quickly some biotech stocks can surge with high-volume in a single day. Case in point, NanoVibronix $NAOV.
In what was essentially a 250% increase, it went from $0.72 to $2.61, after hours up another 9%.
The company has a new device a UroShield that impacts the reduction and incidence of urinary tract infections and the pain and discomfort caused by urinary catheters. News in a study shot up the stock late Friday afternoon.
Based on the data of short interest API, the short volume was nearly meme-stock inspired. Get this, volume of 58.8 million shares compared with the full-day average of about 204,000 shares.
With that kind of volume $NOAV is likely to keep going up into next week, making it a potential meme stock for the quick profit momentum gamblers.
While the news is positive, it’s hard to see how the stock price increase of so radical a nature is justified. The company said “The Journal of Medical & Surgical Urology” is publishing an article with “overwhelmingly positive” findings from a study of patients that used its UroShield product in real world settings. “As we would expect, the patient experiences in the study were statistically significant, with all responding patients reporting that our device was simple, easy to use and materially benefitted them,” said NanoVibronix Chief Executive Brian Murphy.
With that much volume it’s unlikely to have reached its short-term zenith on the news as many traders weren’t around on Friday PM to catch the trade.
The company said the peer-reviewed publication has been submitted to the National Institute for Clinical Excellence.
With penny stocks very beaten down since February highs, news is more dramatic at the intersection of biotech and meme-like momentum in volume.