Following the huge flop in mid-November, the market performance of Emisphere Technologies, Inc. (OTC:EMIS) had been pretty sub-par until yesterday. Because, as it seems, EMIS has finally cracked the 50-day moving average line paving the way for a new upward trend.
Yesterday, EMIS shot up 28% to $0.32 per share, its fifth rise over the last six trading days. The increased investor interest eventually pushed the turnover to almost 400 thousand, the company’s highest since Dec. 21.
While EMIS tends to issue corporate updates every now and then, there have been no press releases for quite a while now. In fact, the company’s latest news came up on Dec. 14 when EMIS reported that the clinical development of the investigational drug SMC021, a/k/a oral calcitonin, has been brought to an end. Considering that the company fell by 75% in mid-November following an update on this very drug, this decision hardly takes investors by surprise.
Needless to say, a failed undertaking such as the one mentioned above is something no company is immune to. The big question here, however, is what follows next. Because, EMIS’s proprietary Eligen (R) technology has not exactly made the huge breakthrough it was expected to make and is therefore unable to improve the company’s dire financial condition. The latter is determined by its gargantuan working capital gap, as well as the substantial losses it has so far been incurring on a quarterly basis.
