Sinobiopharma, Inc. (SNBP) soars on — what exactly?
Today's Financial News - Posted January 21, 2010
Sinobiopharma, Inc. (OTC:SNBP) has been rising pretty much out of the blue. How to play a stock that’s as volatile as this?
by J. Christoph Amberger
Baltimore, MD: One of my favorite Chinese drug manufacturers, Sinobiopharma, Inc. (OTC:SNBP), is up to above $0.31 — from a low near 21 cents on January 8. That day, I last recommended this stock as a short-term speculation to readers of TFN’s now “retired” high-end trading service, Penny Stock Confidential.
Now, the last spike above 30 cents — on my last day at TFN, Jan. 15 — occurred on excellent earnings and revenues growth news.
I see no clear indication where the current interest is coming from. But in the first hour of trading, volume has already reached half of the average daily trading volume.
Overall, I continue to recommend SNBP as a worthwhile — if extremely volatile! — speculation. Revenues growth year-over-year is bound to level off as the numbers get better each quarter. The past year has proven that this is a very news-sensitive company: Even the publication of an approved product list can set the price of the ADR soaring.
Protracted periods of no news, however, have a tendency to erode the value of the shares. Use these inevitable pullbacks to near a quarter per share as buying opportunities.
Please be sure to sign up to my email and blog updates on this and other high-potential stocks!
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