This is a slow day in the stock market as the US stock market is about to enter a long weekend holiday, with next Monday a trading day holiday with the exchanges closed for July 4th. However, this morning shares of Lightwave Logic Inc. (LWLG) are up over 15.90% to make it one of the top gaining stocks on the US OTC. It also is one of the top traded stocks as over 2,000 individual trades have already executed for it this morning. As you can see from the chart this up day today is a continuation of what has been a continuing rally in the stock.
The stock has gone up so much in the past month that it now has one of the largest overbought readings in terms of RSI that I have ever seen. It is in fact amazing. The stock itself has rallied so much that it has a market cap of over a billion dollars. Market caps are calculated by multiplying price per share by the number of shares outstanding to generate a value of the entire company. At the same time the company has zero revenues.
So, why is the stock going up? There are two reasons. First, the company announced a new business plan in May and then issued a series of press releases in June about various patents it created. According to the company it, “is developing a platform leveraging its proprietary engineered electro-optic (EO) polymers to transmit data at higher speeds with less power. The Company’s high-activity and high-stability organic polymers allow Lightwave Logic to create next-generation photonic EO devices, which convert data from electrical signals into optical signals, for applications in data communications and telecommunications markets.” It explained its new business model in this May presentation.
I don’t really understand all of this stuff myself, but the second reason the stock is now going up is simply that there are now many people looking for the next hot stock to buy. Millions of individual traders have gotten into the market for the first time in the past twelve months and most of the big fad players of last year faltered in March. The crypto and Bitcoin market fell apart. That has driven traders to look for new momentum and stocks like this one provide it. The stock action and potential of new technology is generating a frenzy for it on social media, as you can see from these Twitter posts.
FYI to all the stubborn short sellers on $MRIN $AUUD $LWLG $MJWL $REPO deserve all your losses & more as you're fighting literally PERFECT uptrends. Just because you're so jaded/cynical doesn't mean that's reality & the market is trying to teach you…enjoy ya damn toxic lepers!— Timothy Sykes (@timothysykes) June 29, 2021
$LWLG— ScottE (@atlsutiger) June 25, 2021
*Model: Selling components, License Tech, Tech Transfer.
*PDKs are their route to foundry partnerships.
*70+ patents: Freedom of manufacturing.
*High level of interest; now focused on deep commercialization w select customers.
*TAMs are massive! pic.twitter.com/qwrMfRYXRh
FWIW all out $LWLG after 11 years. No idea if the tech is real yet and at a Billion dollar valuation I wanted to lock in profits I never thought I was going to get. We will see what happens. If anyone has a line to mgmt tell them to raise $50m in an offering ASAP!— IPHawk (@TheIpHawk) June 24, 2021
I have no position in this stock and am not trading it. The valuation is too high for me when I have no idea how to factor in earnings for it with no idea if they can even make any. I get into situations that are more clear to me. To get on my free stock trading update list and get my top stock pick for the month just click here.