Last Friday, Soligenix Inc.(OTC:SNGX) stock was at its usual price level for the last several months. There was nothing particular about the number of traded shares, there was no news, company announcements or promotions. Two days later, the stock suddenly exploded. 
There is no news this week, no company announcements, no promotions as well. In fact, this describes the situation for the entire month. Yet, more than one million shares were traded yesterday, and the price increased with more than 15%, the session closing at $0.219 and speculations began.
In fact, Soligenix is a late-stage biopharmaceutical company which gives a broad field for discussion on its products, especially the ones in phase 3 clinical trials. Some of them even included the potential connection between the disaster and Japan and products of the company. Yet, they were obviously not influential enough since today`s session started with a decline in the stock price. [BANNER]
Otherwise, as mentioned above, this stock has been gravitating around $0.18 for quite some time now and unlike many other penny stock biopharmaceutical companies, this one enjoys a good financial condition. The last 10-Q statement with an end date Sep. 30, 2010 indicates the following:
- total current assets of $9.4 million (6 times more than total current liabilities);
- revenues from grants of $1.6 million;
So, while the net loss for last year and the accumulated deficit are not quite inspirational, at least the company has enough cash to continue operations, fund its research activities and ultimately, if successful, release a good and innovative product on the market. It enjoys the financial support of government institutions, which is also not typical on the penny stock market.
In this aspect, the main question is not really why the stock did jump so suddenly yesterday, but about the time at which the results of the trials would be announced in order for the future direction of the company to be assessed. Until that point, while similar short bursts could happen with no catalyst at hand, it is uncertain whether stable growth on the stock market could be achieved.
