The hyped publications dedicated to Lpath, Inc. (OTC:LPTN) that came out over the past week finally had an effect on the share price of the stock. Yesterday, LPTN spiked up on huge trading volume, reaching levels last seen in June this year. 
The session closed with a 30.43% increase at $1.20 for a share, while the trading volume was way above the average with over 303,000 traded shares. As there has been no news from the company since the filing of the latest 10-Q in the middle of the month, it seems that the hype has been created by several articles that appeared over the last several days.
Yesterday, LPTN was featured on the list of stocks to watch this week, while the day before that another article pointed out the potential of the company’s drug candidates as validated by the cooperation agreement with Pfizer, Inc.
Even more, a week ago a press release declared LPTN as a potential acquisition target, pointing out the advantages of LPTN drug candidate iSONEP that has “caught the eye of the industry”. The PR even mentions a target price of $8 per share given by a research firm and claims the company is currently undervalued with a market cap of $63 million.
That last statement should not be taken that seriously without profound research on the company as with yesterday’s jump LPTN market value has climbed to over $72.6 million, while the book value of stockholders’ equity is $4.4 million as of September 30, 2011. That means a P/B ratio of over 16.4, the industry average being 3.55. LPTN trades also with a higher than the average premium on the sales of the company, also suggesting that the share price could fall back down after the spike yesterday.
