Last Friday was one of the extraordinary sessions for ALQA stock, market by a large share price jump up and a booming trading volume. The closing price was $0.25 for a share, or 25% higher than on Thursday, and the stock traded more than 1.5 million shares. RSI points up and shows that there could be more upside potential, but if the new yearly high at $0.26 was solely the result of technical indicators that potential could be limited.
If the jump up happened on the expectation of news and that news doesn’t come out today, ALQA could make a correction downwards. The latest press release of the company was published in January, and it said that the company has successfully completed its initial study for its transdermal pain patch project. According to the press release, Alliqua project has shown favorable profile when compared to the market leader, whereby the target market has been estimated at $1.4 billion.
That number, along with the company’s claims that it has progressed with its plans, must have made investors even more confident in the future development of ALQA. Though, the company’s latest financial report shows that ALQA has a long way to go before it can announce it has actually captured a substantial share of its target market.
Alliqua started this new business in May last year after a merger with a privately-held medical company, in which ALQA acquired mostly intangible assets in exchange for shares of common stock valued at $0.19 each and representing the controlling interest in the public company. Thus, ALQA current business model is the manufacturing and distribution of hydrogel, an aqueous polymer-based radiation ionized gel used in various medical and cosmetic products. In addition, the company intends to develop a potentially lifesaving treatment for liver failure patients.
Not to the delight of traders, however, it is not in the management expectations that the business will generate sufficient sales to cover the expenses and make a profit by the end of the current year.
