Cleveland Biolabs Inc. (NASDAQ: CBLI)
Shares of Cleveland Biolabs Inc, a little-known biotech company based in Buffalo, New York jumped 68.39% or up $1.32 to $3.25 on heavy volume that moved shares dramatically higher in late day trading on Tuesday, May 26th 2015. To give you an idea of what may be about to come, this stock on average trades 98,000 shares per day and traded a whopping 2.8 million shares with the majority of volume pouring in the last 2 hours of the trading day. Moves like this in small biotech companies have been the commonplace recently as speculation rises in potential mergers and acquisitions and drug approvals from the FDA.
As of this writing there are no known posted news releases on the company and the price move seen today could be from an analyst, small cap biotech newsletter reports, or rumors speculating a buyout for a drug approval. However, given the volume of shares traded and the timing of the move suggests that this was possibly a big investor or the so-called high frequency traders responsible for the large move.
A Closer Look at Cleveland Biolabs, Inc
After delving into some of the company’s recent press releases and SEC filings I found nothing to indicate any major insider transactions to fuel such a move. Directors, CEO’s, COO’s and other individuals closely related to a company have an opportunity during specific times of the year to buy or sell shares in their own company’s stock. This is perfectly legal and when shares are purchased it usually is a strong indication that positive developments may be on the horizon for the Company.
Looking at the chart there is nothing technically apparent that would substantiate this move. This stock is basically in a major downtrend and within price channels. Although, after today’s move it seems to have broken the upper price channel. If after a small pullback this upper price channel serves to be support, a new uptrend will have been established and potentially bring even higher prices in the future.
One thing is for certain, shares of this small biotech have been showing up on stock trading screens everywhere today and much interest will be present when the stock opens for trading tomorrow morning. Keep it on your radar!
Below please find the weekly price chart showing the price channels and subsequent break of the upper price channel today. Note the huge volume increase.
About Cleveland BioLabs, Inc. Cleveland BioLabs, Inc. is an innovative biopharmaceutical company seeking to develop first-in-class pharmaceuticals designed to address diseases with significant medical need. The company’s most advanced product candidate is entolimod, which is being developed for a biodefense indication and as a potential cancer treatment. The company conducts business in the United States and in the Russian Federation through a wholly-owned subsidiary, BioLab 612, LLC and through two joint ventures, Panacela Labs, Inc. and Incuron, LLC. The company maintains strategic relationships with the Cleveland Clinic and Roswell Park Cancer Institute. To learn more about Cleveland BioLabs, go here. Inc .http://www.cbiolabs.com.