While this has been a down day morning for the US stock market as the DOW fell over 300 points off the open shares of CytoDyn (OTCMKTS: CYDY) are up over 13% so far today as it continues to rally on hopes that its leronlimab drug can provide help for coronavirus patients. We have seen Gilead (NASDAQ: GILD) rise on news of its drug and even get the attention of the mass media and White House. There are many new traders getting into the market for the first time and many are looking for other stocks with potential wonder drugs in the works to trade that could go up like Gilead. Take a look at the CYDY chart.
This stock came out of nowhere in January and began to rise on news of its potential use for leronlimab drug for people with compromised immune systems such as those who suffer from HIV. In March though the drug came into limited test use for coronavirus patients too. That creates huge possibilities and potential and brought in many buyers into the stock in March.
This morning the company put out an update on the drug results and provided updates on 49 patients who have taken the drug. None of them have died. Bruce Patterson, M.D., an advisor to CytoDyn, said that, “We are excited that patients are responding extremely well to leronlimab as expected from the novel mechanism of COVID-19 pathogenesis we discovered and will be reporting in the coming days.” This stock action and news is getting many penny stock traders on Twitter very excited.
Anyone that thinks $CYDY is just an OTC pos – think again. Their COVID-19 treatment Leronlimab will be published in New England Journal of Medicine. #coronavirus conference call Monday. https://t.co/0Q8AqtArs0— pb_trading 🧢 🇺🇸 👨👩👧 (@pb_1973) April 24, 2020
$CYDY — Leronlimab did little or nothing for the Covid-19 patients treated at Montefiore Medical Ctr in NY, according to a letter published in NEJM.— Adam Feuerstein (@adamfeuerstein) April 24, 2020
Only 1 of 5 patients remained stable, without intubation. https://t.co/3zzTzco0oS
I personally consider stock situations like this as very speculative. Biotech companies by their nature trying to develop drugs like this are indeed an uncertain thing. Right now there many new people getting into the markets for the first time with a surge of people opening up Robinhood Accounts as evidence. People are also looking to buy stocks now as the market is rallying into the future “reopening” of the economy, although it is not clear how much of a “reopening” we will really see.
I like to buy the stocks of sectors that are beating the market averages. Right now gold and mining stocks are doing that and I expect my top stock pick for this month to continue to do this next month too.