The novel coronavirus pandemic has been a period of mourning, with some moments of celebrating, as well as a wake-up call. Those same features are also part of the investment profile of iBio (NYSEAMERICAN:IBIO). It begs the question, what’s next? Let’s look at what’s happening off and on the IBIO stock price chart to determine if shares offer today’s investors a risk-adjusted opportunity to buy or a company best to avoid.
In the race for a vaccines or treatments to combat the coronavirus, it’s been a volatile period for biotechnology and pharmaceutical outfits trying to find effective protocols. The world is rightfully watching.
It’s also demanding fast, previously unheard-of actionable success. As a result it seems nearly every day there’s breaking news of another successful trial or an effort that’s gone south vying for investors’ attention.
Consider Moderna (NASDAQ:MRNA). Regeneron Pharmaceuticals (NASDAQ:REGN), Astra Zeneca (NYSE:AZN). Pfizer (NYSE:PFE). Each has emerged as a front-runner in this most difficult of challenges. Today it’s Regeneron’s turn for a round of investor cheer with its drug REGN-COV2 part of a cocktail used to treat the president. By and large, these companies aren’t one-trick ponies either. Each has the capital and human resources needed to be successful in an industry known for a lopsided amount of costly failures which strongly favors seasoned, large-capitalization leaders over smaller peers with lesser resources.
Could IBIO Stock Be the ‘Real Deal’?
Still, there are times when innovation or a groundbreaking drug comes out of left field. And some on Wall Street continue to believe small-cap biotech IBIO has what it takes. And with InvestorPlace’s Louis Navellier, a guy that’s uncovered his share of 10 baggers over the years, in that group, is it possible IBIO stock is the real deal?
Navellier’s enthusiasm for iBio shares is based on the idea the coronavirus isn’t a one-winner-takes-all situation. In due time there will be multiple vaccines to choose from based on a person’s health, access and cost among various factors. That stands to work in IBIO stock’s favor.
The fact is the company has been slower to get through various trials than some of its competition. Importantly, his research indicates the company’s FastPharming plant biologics system and agreement with Planet Technology shouldn’t be overlooked.
Here’s the thing, there’s more than one avenue for IBIO to succeed. Sure, iBio remains a riskier investment. But there’s also a chance that on its own or partnered up, iBio can find a vaccine for the coronavirus. At the same time and as part of that process IBIO stands to show the world the efficacy of plant-based drug alternatives. And that might just prove a much larger and recurring win for the company down the road and long after Covid-19.
IBIO Stock Weekly Price Chart
Source: Charts by TradingView
In months past I’ve been skeptical of IBIO’s prospects as shares came bursting out of the blue with a mission to save the world against Covid-19. But I’ll also admit that what once looked, smelled and quacked like a duck in financial straits now maintains some key characteristics of a bullish, albeit still highly speculative investment.
End of Short-term Pain
Technically, by mid-summer, a surprising higher-high pattern developed in IBIO shares. As InvestorPlace’s Bret Kenwell noted, management’s ability to shore up its financials helped remove some of IBIO’s binary price behavior tied to Covid-19 where the only possible outcomes were extremely bullish or equally bearish. It appears to have initially driven the share price higher. And in our estimation, it’s a big plus for the company. That’s not all though.
Most bulls buying into IBIO stock the past few months are underwater. But that short-term pain may have finished. Over the past few weeks the price action in iBio has established a bullish higher-low. And along with the July high, the price action marks what could be the beginning of a much larger uptrend.
Bottom-line, after periods of cheering, despair and wake-up calls for both bears and bulls, IBIO is well-positioned for higher prices. Will shares rally, though? There’s no guarantees of course. Still and as a risky but slightly less dangerous investment, to steal a line from POTUS: “it is what it is.”
On the date of publication, Chris Tyler did not hold, directly or indirectly, positions in any of the securities mentioned in this article.
The information offered is based upon Christopher Tyler’s observations and strictly intended for educational purposes only; the use of which is the responsibility of the individual. For additional market insights and related musings, follow Chris on Twitter @Options_CAT and StockTwits.