Shares in the penny stock of CytRx Corp. (Nasdaq: CYTR) may be on a turn around after closing at $0.323 in the last trading session. In the screen of upgrades and downgrades stocks, CYTR is now covered by Wall Street analysts Roth Capital who set a “buy” rating on the penny stock. CytRx, a biopharmaceutical research and development company specializing in oncology, has gained 15.36% YTD and had nearly 3/4 of a million of its penny shares purchased two months ago by corporate insiders.
Buy signals galore on this penny stock are evidenced by the corporate purchases and the Nasdaq be-heading CYTR acknowledged in their recent 8-K. The Nasdaq review panel granted CytRx’s request to remain listed on the Nasdaq exchange based on the condition that, on or before May 30, 2012, CYTR must have evidenced a closing bid price of $1.00 per share or more for a minimum of ten prior consecutive trading days. Delisting Bingo! Winner, Winner, Chicken Dinner!
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CYTR Stock Snap Shot:
Market Cap: 47.94M
(Apr 28, 2011): 1.06
(Dec 16, 2011): 0.24
50-Day Moving Average: 0.35
200-Day Moving Average: 0.33
Avg Vol (3 month): 1,274,430
Avg Vol (10 day): 560,217
Shares Outstanding: 148.43M
% Held by Insiders: 3.05%
% Held by Institutions: 7.40%
Scenario: Cheap Penny Stock + Nasdaq Delisting Compliance Due Date + Evidenced 741,340 shares purchased by Corporate Insiders on February 22,23. (see here)
Recently, CytRx completed enrollment of a Phase 1b/2 clinical trial with the doxorubicin conjugate formulation of INNO-206 in patients with advanced solid tumors (primarily soft tissue sarcomas), and initiated an international Phase 2b clinical trial in patients with soft tissue sarcomas, comparing the efficacy and safety of INNO-206 to doxorubicin, a standard treatment for soft tissue sarcomas. The Phase 1b/2 clinical trial results will be presented by a premier soft tissue sarcoma expert at the American Society of Clinical Oncology (ASCO) meeting in early June.
To view the SEC filings for CYTR, click here.
Bottom Line: Don’t be a fool, put CYTR on your list of penny stocks to watch and get yourself a favorable entry level quickly. The insider purchases indicates the company has no intention on being delisted as they occurred one week after the Nasdaq notification on February 15th. At this level, that’s a 209% gain starring you in the face like a batting practice warm up pitch in a stadium full of cheering fans. Likely Result: Homerun.
Note: Their is a proposal on the table for CYTR to approve a reverse stock split to be held on May 14th. If approved, the 15th to 17th is likely when it will be effectuated. Monitor the situation closely.