Radient Pharmaceuticals Corporation (RXPC) Jumps

rxpc RXPCShares of Radient Pharmaceuticals Corporation (Public, PINK:RXPC) closed 12.50% higher on Wednesday after the company said that it has released a corporate report which states the company’s business strategies.

Share holders of the RXPC have been seeing very tough time so far this year driven by host of bad news, which has taken the stock to $0.09 from $1.60 since the start of the this year.
RXPC was recently shifted its listing to bulletin boards on June 23, 2011 as the company messed up its balance sheet with full of debt and unpaid liability. The company was forced to list its lest on OTC as it couldn’t monetize its sole product , a colon cancer-monitoring test known as Onko-Sure.

RXPC Liability of 9 million

RXPC still has liability to creditors of about $9 million in its balance sheet. The company couldn’t pay the scheduled interest rate, which has pushed up its interest rate on its existing loans to 24%, including late penalties.

Despite,  RXPC’s attempt to convey its creditors to accept new equity shares in exchange of their loans, the company couldn’t be able to convince them.

In absence of any revenue, the only thing  RXPC could do it the issuing of new shares to its existing creditors, which could be around $9 million.

Shares of  RXPC are trading very near to its 52-week low of $0.07. We don’t find reason to buy this share, unless and until, markets get any clear strategy about the clearance of their debt.

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COBI is showing very unusual trading sessions

Penny stock shares of Compass Biotechnologies, Inc. (Public, OTC:COBI) are on ride over the past three trading sessions

COBI started gaining momentum on Wednesday, when it climbed 67% on low volume. The next day, COBI stock further added 22.50%.

cobi compass biotectnologies COBIRecent activities were driven by on no news. Looks like, there would be either some news coming or some big promotional activities going on.

COBI filed its last press release on April 26, 2011, where it signed a memorandum of understanding with Arecor Ltd.

The company is engaged in development and commercialization of generic, biosimilar and bio-better therapeutic products. It has already completed preclinical testing and analysis of Cyplasin-SC™. Compass Biotechnologies holds two issued patents, while it has applied for three more, which are pending.

COBI had no revenue as of January 31, 2011.

Meanwhile, it had a net loss of $1,489,171.

COBI said that it expects to require $1,790,000 to pay its current liabilities, which are way short of current net assets. So, it would be very difficult for the company to overcome with this situation, unless and until it arranged some financing.

COBI has Deficit accumulated during the development stage of $3,317,763.

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ELTP Stock Slides After Share Conversion

eltp elite pharma ELTPELTP Elite Pharmaceuticals, Inc. (OTC:ELTP) is one of the most active penny stocks among traders. Over the past few trading sessions, we have been experiencing very unusual trading volume in the stock.

The stock closed 10.60% to $0.152 following the news that the company has agreed to convert Convertible Preferred Stock into the Company’s common stock. The conversion dilute existing shareholders earnings and would lead to save $720,000 in annual dividends. Following the conversion, the company would have total outstanding stock of approximately 243.36 million shares.

ELTP gapped down sharply on Tuesday, opened at $0.16, and touched an intraday low of $0.12 within 20 minutes. Later on, the stock bounced back and made an intraday high of $0.17. Finally it ended the day at $0.152.

If we look ELTP’s at the recent stock performance, the stock had soared over 46% on May 20, 2011 on volume never seen since Apr 15, 2011. The stock had seen various volatile sessions in the month of April and during the same month the stock jumped about 125%.

So far in the month of May, the stock has been consolidating and at current price, it is trading above its 50-Day Moving Average and 200-Day Moving Average of $0.15 and $0.08 respectively.

Going forward, it would be difficult to predict, but the stock is showing support at $0.15 and $0.12, which could be strict stop loss for traders and any sharp move up/down from here on, could trigger the up/down trend.

So, watch out for ELTP stock.

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ALZM’s Stock Promotion Budget Should Have Been for R&D

Today we have an new entry to add to your penny stock list. The story is sexy and the company has traded in a volatile fashion. Does that mean the stock is going higher next week ? Not necessarily, but doing further research on equities like this one, is how you can potentially identify the best penny stocks to buy.

alzm Allezoe Medical Holdings (ALZM)   Stock Promotion SpendingThe company we are focusing on in this entry is Allezoe Medical Holdings Inc. (ALZM.OB) through its subsidiary, the company focuses on the development of devices for human organ transplants. The trading volume of Allezoe exceeded 10 million shares Friday and basically closed near middle of the day’s range at $2. However, this type of volume constituted a failure of testing a new high. From a chartists standpoint, the technical analysis does not look good for ALZM. On the flip side, we have seen some of the hottest penny stocks pullback from their highs only to rally again.

My concern with the shares of ALZM is not solely based on the breakdown of the chart. The company has put out several positive PR’s regarding subjects like patents and preparation for clinical trials. However, the company has undergone a massive stock promotion recently, which is not uncommon for many micro-cap stocks and is not necessarily bad for the share price. But, we have to ask ourselves one question. Would the funds that were allocated to stock promotion be better used for R&D ?

Time will only tell. So for now, monitor ALZM and add it to your penny stock list. The type of volume seen last week often leads to a volatile week. So be prepared. Also, stay tuned for more market reports, penny stock alerts and IPO market updates.


Are Biotechs Too Cheap?

genz genzyme 300x176 Genzyme Rejects Bid From Sanofi AventisThis morning people woke up to shares of Genzyme Corp. (NASDAQ:GENZ) trading sharply higher in pre-market trading. On Sunday, Genzyme received an $18.5 billion offer from Sanofi-Aventis (NYSE:SNY) which comes to $69 per share.

The bid was rejected by the Genzyme Board despite their recent manufacturing issues. This decision could send a sign that many bio pharma stocks, including Genzyme are undervalued. We will probably see some increased volume and news flow early in the week from this sector. Especially with the mid and large cap names.

This M&A activity also bodes well for some of the unknown and under followed names on the OTCBB. Unlike most other sectors, excluding mining penny stocks, tiny microcap biotech and bio pharma stocks do get funding from larger companies from time to time.

For instance, giving a potential hot biotech penny stock $5 or $10 million dollars in R&D money is a small risk to take for a multi-billion dollar corporation looking for a new that could potentially become part of their pipeline.

While I can’t say for sure, it is probably safe to say that you will see some of the top penny stock newsletters writing about this trend in the next few weeks. Please keep in mind that the vast majority of biotech and biopharma stocks are very risky, and shouldn’t be owned by the feint of heart. However, this group has offered some investors some of the most massive gains.

So if you decide to buy one these biotech names of of a penny stock list, make sure you invest small. Also, when investing in a biotech always check their cash position and burn rate. These two numbers will tell you how much money the company has and how quickly they go through it.