Hristina Beeva

La Jolla Pharmaceutical, Co. (OTCBB:LJPC) Turns to Red

by Hristina Beeva October 23, 2013
Sadly, La Jolla Pharmaceutical, Co. (OTCBB:LJPC, LJPC message board) burned through the good news too quickly. On Monday, the company received a Notice of Allowance of Patent Application for one of its treatment, and easily peaked out at almost 24 cents. But on Tuesday, the ticker slid down more than 12% to $0.205, on dollar volumes of above $557,000. LJPC1023.png

The strong selling underlines the fact that LJPC is yet another news-hungry stock, yet the latest piece is still too preliminary, and a patent may take a while to materialize. Meanwhile, LJPC is left to hang at a two-year peak, with all the risks and threats that this entails for a stock price that is more accustomed to a price of around 10 cents.TTNP1023.png

And now LJPC has to face also a fallout from an email promotional campaign, as the latest message landed also on October 21st. Without news, the fall could continue easily. Penny Stock Finders took up LJPC for an unknown compensation, probably for free. And so did Penny Stock Prophet and The MarketCaliber Team. Monday was the first promotional boost for LJPC since the last series of emails that started it all, coming in on October 8th. So if we trust the habits of promoters, there will be a silence for a while, and a great unknown as to the fate of this ticker.

Still, LJPC is one of those pharmaceutical companies that seem equipped to go on, while serving many more surprises to the OTC markets. LJPC holds:

  • $1.8 million cash
  • $308,000 current liabilitiesACTC1023.png
  • $3.7 million quarterly net loss

All would be almost peachy, unless we count the 12 billion authorized shares, and the habit to issue new shares for financing, and covering the tracks with reverse-splits over the years.

Pharmaceutical stocks are hot right now, with old and new offers, but most have a thing in common- awaiting a piece of news, and making spectacular run-ups on that expectation. Unfortunately, very often the hopes are dashed, or there is profit-realizing at the peak level, which breaks the fast and unsustainable trend.

Titan Pharmaceuticals, Inc. (OTCBB:TTNP) started off with great optimism a couple of weeks back, promising a run to close the gap from May. But now, TTNP slides on volumes below $300K, down to 84 cents, still a dollar away beneath the May 7th levels.

And long-term runner Advanced Cell Technology, Inc. (OTCBB:ACTC) lost more than 11% after again tiring out investors on a long sideways drift, with limited gains in a tight range. More than $1.73 million's worth of shares was shed to bring the ticker down to $0.062.

As you can easily see, those scenarios easily follow even periods of good news. It is best to estimate if you can afford these events before choosing the pharmaceutical sector.

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