Neurosense Therapeutics Ltd (NASDAQ:NRSN) tripled market value in a day. This was after announcing approval by the US Food and Drugs Authority to advance research on a drug for Amyotrophic Lateral Sclerosis.
The price shot up from $2.18 to close at $6.23. The jump reflected expectations that research by the company will result in a breakthrough in the treatment of Amyotrophic Lateral Sclerosis.
The pricing of NRSN is important for a number of reasons. First, the company’s prospects in the development of new drugs are commendable. The FDA approvals are a testament to this. As news continues to trickle in on the developments, the stock will continue being on demand.
Second, the company is new in the market, and investors are still trying to learn about it. As more investors troop to the stock, the valuation will keep rising. Early entrants will be the real winners in this stock.
Third, the company is still a small-capitalization and penny stock. Investors only require small amounts of capital to invest in the stock. Being a penny stock also means that the bid-ask spreads will be wildly wide.
The rise from $2.18 to $6.23 is characteristic of how penny stocks function. If an investor is well-positioned in the market, it becomes possible to quickly multiply capital.
NRSN penny stock moves from $2.18 to $6.23 in a day
Source – TradingView
The chart shows the stock’s price movements since inception. This week’s movement is the highest recorded by the company. It is worth noting the volatility in the stock price as a key factor to consider in trading the stock.
Summary
Neurosense Therapeutics got FDA’s approval for its drug that will be used to treat Amyotrophic Lateral Sclerosis. The company is a penny stock in the health sector. Success in drug developments is the key factor driving the valuation. Early entrants will make wildly huge gains on the stock.
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