Shares in the penny stock of Vermillion Inc. (Nasdaq: VRML) got a nice boost today gaining 47.88%, reaching as high as $2.79 before closing at $2.721. The Company, focused on Ovarian Cancer treatment, witnessed nearly 4 million shares of VRML stock changed hands during the trading session which was priced at just $0.97 on December 20th of last year. The only news or activity that could cause for VRML shares to jump was the filing of an amended Schedule 14A for the upcoming shareholders meeting in June.
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VRML Stock Chart:
Market Cap: 40.60M
(Jun 1, 2011): 5.69
(Dec 20, 2011): 0.97
50-Day Moving Avg: 1.98
200-Day Moving Avg: 1.64
Avg Vol (3 month): 763,660
Avg Vol (10 day): 644,050
Shares Outstanding: 14.92M
% Held by Insiders: 18.34%
% Held by Institutions: 14.10%
From a trading perspective on the penny stock, VRML shares have exploded past both their 200-day and 50-day moving averages Thursday with monster volume. This move is pushing VRML stock price within range of triggering an even better breakout trade. That trade will happen once VRML stock pricce surpasses some near-term overhead resistance at $2.37 to $2.46 with volume equal to Thursday’s.
What caused the breakout today in VRML stock can only be traced back to the preliminary proxy materials which call for:
• A vote FOR the election of Robert S. Goggin, and, if the Amendment is reversed of Mr. Goggin and Gregory V. Novak, to serve as directors of the Company,
• A vote AGAINST the approval of the compensation of the Company’s Named Executive Officers,
• A vote AGAINST the amendment and restatement of the 2010 Plan for the purpose of increasing the number of shares of common stock authorized for issuance under the 2010 Plan by 1,300,000 shares
VRML now waits to open Friday at 37.66% above its 50day moving average, 66.33% above its 200 day moving average, yet still -52.18% below its 52 week high of $5.69. Traders should now look for long-biased trades if VRML can sustain a move, or close, above $2.37 to $2.46 with volume that’s well above 703 thousand.
About Vermillion Inc.
Vermillion, Inc., and its wholly-owned subsidiaries, is engaged in the business of developing and commercializing diagnostic tests in the fields of oncology, cardiology and women’s health. On March 9, 2010, the Company commercially launched their flagship product, OVA1. OVA1 is a blood test for pre-surgical assessment of ovarian tumors for malignancy, using a unique multi-biomarker approach.
Vermillion distributes OVA1 through Quest Diagnostics, a related party, which has the non-exclusive right to commercialize OVA1 on a global basis, with exclusive commercialization rights in the clinical reference lab marketplace in the U.S., India, Mexico, and the U.K. beginning on the date OVA1 was first commercialized and ending on the 5th anniversary of the date that OVA1 was cleared by the U.S. Food and Drug Administration, with the right to extend the exclusivity period for 1 additional year.
To view the SEC filings for Vermillion, click here.
Bottom Line: The penny stock of Vermillion Inc. has serious momentum. VRML has some technical barriers to breakthrough, but we recently saw that same pattern emerge with ROSG which gained over 1,000% since last week.
Keep VRML on the front of your screen and watch the volume as well as the bid price. It didn’t take long for ROSG to go from $1.62 to $499 on t’s way to above $23.
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