- Sunshine Biopharma (SBFM) stock spiked recently due to exciting anti-cancer-drug test results.
- However, some investors may be deterred from buying the stock in the wake of a particular filing from the company.
- Investors should consider a long position in Sunshine Biopharma based on the data, not on confusion and misconceptions.
Sunshine Biopharma (NASDAQ:SBFM), headquartered in the greater Montreal, Canada, area, develops anti-cancer drugs. SBFM stock is affordable and has demonstrated an ability to move higher very quickly. And it’s worth considering at its current price.
At the end of the day, you might choose to take a small position in SBFM stock, as Sunshine Biopharma has revealed some highly encouraging clinical results. The implications are profound for the company, and for pharmaceutical oncology research in general. But the company’s risk profile may not fit every investor’s portfolio.
Just maybe, this stock has the potential to return to its prior peak. There are no guarantees here, but the possibility warrants keeping Sunshine Biopharma on your radar.
| SBFM | Sunshine Biopharma | $2.97 |
What’s Happening with SBFM Stock?
Not long ago, SBFM stock rocketed up to a pinnacle of $9.87. That’s after having quietly traded below $3 for a while.
But almost immediately, Wall Street seemed to turn against Sunshine Biopharma. It’s amazing how investors can love a stock one day, then shun it the next.
Currently SBFM stock is back around the $3 area. But if the investing community favors Sunshine Biopharma again, there’s the possibility of a return trip to the $10 area.
So, what caused the pop and then the drop? The catalyst for the ride up is easy to spot. A press release revealed that two of Sunshine Biopharma’s mRNA molecules are, according to clinical study results, effective at destroying culture-grown cancer cells.
Reportedly, tests were performed on a number of types of cancer cells. These included breast cancer cells, ovarian adenocarcinoma cells and pancreatic cancer cells. Studies showed that mRNA molecules associated with non-transformed (normal) human cells had “little or no cytotoxic effects.”
In contrast, Sunshine Biopharma’s new mRNA molecules demonstrated effectiveness, and are “readily adaptable for delivery into patients using the mRNA vaccine technology.” In connection with these exciting results, Sunshine Biopharma looks forward to filing for a a patent on the discovery in the near future.
Clearing Up the Confusion
It’s easy to see why Wall Street became interested in Sunshine Biopharma. Soon, though, the sentiment would turn negative.
Let’s backtrack a bit. On March 10, Sunshine Biopharma submitted a filing with the U.S. Securities and Exchange Commission (SEC) that it would be issuing roughly 3.6 million shares in a private placement.
Sometimes, investors don’t want companies to issue additional stock shares. The concern revolves around the potential for share dilution, which can cause the stock shares to diminish in value. Essentially, each share represents a smaller piece of the overall company.
Fast-forward to April 8, and SBFM stock dropped 30% in a single trading session. Probably, this occurred because Sunshine Biopharma had confirmed that the company’s S3-filing-indicated resale went into effect.
To clear up any confusion, Sunshine Biopharma tweeted, “This is not a new offering, this is our March Financing. The resale S3 is now effective.”
It seems like that tweet didn’t prevent some traders from unloading their SBFM stock. Yet, it appears that there was no new issuance/sale of shares, beyond what was already known about in March. Which makes this most recent pullback feel a little excessive.
What You Can Do Now With SBFM Stock
Confusion can actually bring opportunities in the financial markets. Sunshine Biopharma is an innovator in the area of pharmaceutical oncology – there’s no confusion about that.
Yes, some traders might have dumped their SBFM stock due to a misconception. If so, then this could be a good time to consider a long position – and keep your eye on the prior peak price of nearly $10. Just keep in mind that positive results in a lab don’t always translate to approved treatments, and make your evaluation accordingly.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
