Many investors may not have heard of cancer company Cel-Sci (NYSEMKT:CVM). Thanks to a few well-timed tweets from its CEO, that is changing on Wednesday. In fact, CVM stock is up more than 60% before the closing bell. So what do you need to know now? And how does this tie into the Reddit stocks trend?
For those unfamiliar, Cel-Sci is a Virginia-based biotechnology company specializing in different cancer treatments. Its pipeline includes treatments for head and neck cancer as well as rheumatoid arthritis and breast cancer. Cel-Sci touts that it is a pioneer in cancer immunotherapy because of the way it approaches treatment. Through its Phase 3 trial, it says it focuses on boosting the immune system prior to radiation and chemotherapy.
In fact, earlier in January, Cel-Sci shared some promising news about its lead candidate Multikine. According to the report, the Phase 3 results will prove its concept for treating head and neck cancer is more effective than the standard of care.
But what about the cancer treatment news has CVM stock up more than 60% today? And where does Reddit and the r/WallStreetBets cult come in?
Remember, a large part of the story with r/WallStreetBets and GameStop (NYSE:GME) is a short squeeze. When short-sellers struggled to cover their positions, they helped spike the GME stock price even higher. Now, investors are trying to find other stocks with similar short interest in hopes of recreating the meteoric rally. In the process, hedge funds are losing quite a bit of money, and old-school investors have been quick to criticize Redditors.
It turns out that Cel-Sci has faced its own issues with short-sellers. As CEO Geert Kersten tweeted today, the company faced issues advancing its cancer drug because of short-sellers. In this message, he also affirmed his belief in Multikine.
CVM Stock and the Reddit Short Squeeze
Kersten was not done after that first message. Instead, he shared another message on his Twitter (NYSE:TWTR), commenting on high-profile short-sellers like Andrew Left of Citron Research. Left drew social media ire last week after promising to livestream his case for GME stock hitting $20. Although he cancelled the livestream and pulled back on his arguments, Redditors are still unhappy with the firm.
As Kersten elaborated along with this message, he believes change will be coming after what has happened with GME stock. Although he did not elaborate, his message touched on the fact that “[short-sellers] can short more shares than exist.” He also said that “[Journalists] can write lying articles under the protection of the 1st Amendment.”
Short-sellers may be losing in the GME stock mania, but it is clear they have hurt Kersten and CVM stock. As the CEO hopes for smoother sailing ahead for Multikine and his company, his message rings true to a larger audience. Although the future of the stock market and r/WallStreetBets is unclear, it is clear that something has changed in the market this week.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.