- Sunshine BioPharma stock keeps rallying as cancer treatment news sends stock soaring.
- SBFM stock trending heavily on social media and attracts retail.
- SBFM shares closed 53% higher on Thursday and are already up again on Friday.
Sunshine Biopharma stock (SBFM) continues to charge higher on Friday following on from a strong performance on Thursday. The stock soared on the back of a positive press release stating that the company had made progress in trial data against certain forms of cancer. Sunshine BioPharma is a tiny stock with a market cap of $68 million.
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SBFM stock has a free float of just 6.57 million shares according to Reuters and a market cap of $68 million. This means the stock is very easy to move. For example, on Thursday 106.8 million SBFM shares traded so not far off 20 times the free float. Tesla (TSLA) traded 26.48 million shares on Thursday out of a free float of 843 million shares, so about 3% of the total free float. This makes SBFM all the more frenzied looking and explains the huge move in the stock. This is not a good thing and is unsustainable, so be warned.
Also read: MULN stock falls further after negative Hindenburg report
Sunshine Biopharma is a biotech company that is focused on developing and bringing to market antiviral and oncology drugs. Sunshine Biopharma is a small or even micro-cap company with a market cap of just over $40 million before the recent spike. It was only listed in February on the Nasdaq. The company is based in Montreal, Canada, and also has partnered with the University of Arizona for an anti coronavirus drug development.
Sunshine Biopharma (SBFM) stock news: Is SBFM stock a short squeeze?
Many social media sites were alive with the potential for a short squeeze and the potential for shareholders to be forced to buy back their stock, but the latest data (as shown above) means this is unlikely. This is frenzy pure and simple. Now the press release makes strong claims for the company. Sunshine Biopharma said that two of its mRNA molecules were effective in destroying culture-grown cancer cells. These were breast cancer and pancreatic and ovarian cancer cells. The company said it will apply for patents based on the trial. “The potential use of mRNA to treat cancer opens the door to many possibilities for patients, including convenience, reduced toxicity, and enhanced efficacy,” said Dr. Steve Slilaty, CEO.
Sunshine Biopharma (SBFM) stock: To the moon it goes
Well not so fast, this is a very early stage and highly speculative as are all pharma investments but especially in the micro-cap space. That is not to say some do not turn into home runs. We merely need to cite the example of Moderna (mRNA) which also used mRNA technology, but caution is needed. Once newsflow dries up which will then the stock will likely die down until the next newsflow development.
SBFM stock chart, daily
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