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It has been a bumpy week and this Friday isn’t any easier following the monthly jobs report. However, that doesn’t seem to matter for Peak Bio (NASDAQ:PKBO), which recently combined in a deal with Ignyte Acquisition. PKBO stock is up by more than 110% as of this writing.
PKBO stock has never traded more than 1 million shares in a single session. Today, though, it has generated trading volume of more than 17 million shares.
Peak Bio made its debut on Wednesday, but the market was not in a very receptive mood. The stock suffered two heavy blows this week, plunging in back-to-back sessions. So, today’s move in PKBO stock is helping right the ship after a bumpy start in the markets.
Is Now the Time for PKBO Stock?
Just coming off of its special purpose acquisition company (SPAC) merger, Peak Bio has now entered into a $100 million stock-purchase deal with White Lion Capital. The company says it will use the “working capital to support its clinical and preclinical programs.”
What exactly does Peak Bio do? The company focuses on “developing therapeutics addressing significant unmet needs in the areas of oncology and inflammation.” What’s more, Peal has already completed two Phase 1 studies with humans for its lead candidate, PHP-303, which targets “the genetic orphan disease called Alpha1 anti-trypsin deficiency disorder (AATD).” The company is now awaiting Phase 2.
Of course, those who are reading probably know where this is going.
Peak Bio may have promise, but it’s still unprofitable and in its pre-revenue stage. At this point in the market cycle — and a bear market no less — PKBO stock remains highly speculative.
At today’s high, shares were in the double digits, up 170% from Thursday’s close. Despite this big move, though, PKBO stock still hasn’t taken out this week’s high. That has some investors wondering whether more upside could be in the cards. Others are proceeding with caution.
That’s not to say bulls cannot be buyers. But they should recognize that this is a speculative holding at this time.
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On the date of publication, Bret Kenwell did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
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