The only reason to trade penny stocks is for the explosive moves they can make. If a penny stock doesn’t have triple-digit or 10-bagger potential, there’s no reason to really be owning them. We at Insider Financial understand this and we spend our time hunting for penny stocks that can make big moves. Aytu Bioscience Inc (Aytu Stock) is one such stock has taken the market by storm this year.
Aytu stock closed out last week up 17% on the day. Aytu Bioscience has a history of explosive moves and could be setting up for another major move higher. Aytu stock is now 300% off the lows and there looks to be a lot more room to run, especially if the stock takes out the 52-week high of $2.99 a share. Above there, and the sky’s the limit.
We still believe new highs are coming for Aytu stock. The fact remains that the coronavirus continues to proliferate. Many are worried we will see another major outbreak in the fall. More testing is desperately needed. As we take a deeper look, we see a massive short squeeze coming to send Aytu stock to new highs above $3.
About Aytu Stock
Before we dig deeper, here’s a little background info on Aytu Bioscience for those that are not familiar with the company. Aytu BioScience, Inc. is a commercial-stage specialty pharmaceutical company focused on commercializing novel products that address significant patient needs.
Aytu recently acquired U.S. distribution rights to two COVID-19 IgG/IgM rapid tests. These coronavirus tests are solid phase immunochromatographic assays used in the rapid, qualitative and differential detection of IgG and IgM antibodies to the 2019 Novel Coronavirus in human whole blood, serum or plasma.
COVID-19 Test Distribution Deal
The latest news from Aytu Bioscience is a deal with Singapore-based Biolidics, Limited to exclusively distribute Biolidics’ COVID-19 IgG/IgM Rapid Test in the United States.
Under the terms of the Agreement, Aytu will exclusively distribute Biolidics’ COVID-19 IgG/IgM rapid antibody test in the United States. Aytu has committed to purchase 500,000 tests within one business day from the date of signing of the Agreement. As an additional component of Aytu’s exclusivity, the Company has committed to purchase a minimum of 1,250,000 tests within the first three months of the Agreement.
Biolidics’ COVID-19 IgG/IgM Rapid Test has been issued Provisional Authorization for distribution by Singapore‘s Health Science’s Authority (HSA), and the product has been authorized for export from Singapore. Biolidics’ COVID-19 IgG/IgM Rapid Test will be supplied from Biolidics’ facility in Singapore.
Aytu will collaborate with Biolidics and lead the U.S. clinical trials processes and plans to complete and obtain FDA 510k regulatory filing clearance of the COVID-19 IgG/IgM rapid test kits.
An upcoming Aytu stock breakout should not come as a surprise, given the substantial improvement in its underlying fundamentals. An exclusive distribution agreement for coronavirus test kits is a major development set to strengthen the company’s revenue base as the race to control the coronavirus heats up. Right now, Aytu stock is one of the best bets for investors.
Good luck to all (except the shorts)!
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Disclosure: We have NO position in NASDAQ:AYTU and have NOT been compensated for this article.