BWV stock came public back in February. At one point, Blue Water shot up as high as $90 per share. Eventually, though, the stock plunged after registering a private placement by major holders in April.
During the fall, trading in BWV stock halted numerous times. Then, shares fell even further in May when the company reported its first-quarter results. Blue Water Vaccines saw a loss of $2.1 million — or 34 cents per share — and had just $18.6 million of cash on hand.
Is BWV Stock Feeling Speculative Fever?
Why is BWV stock popping today? Some investors may think the company is about to get a takeover offer, but that's pure speculation. Policymakers also remain very worried about the need for new vaccines against Covid-19. Biotech stocks have been rising recently, after falling for most of the year.
On the other hand, BWV stock may also be seeing a short squeeze. Right now, the company is a top trending ticker on Yahoo! Finance. Shortsqueeze also recently listed 7.22% of Blue Water’s 3.83 million share float as being held short.
It wouldn't take a lot of money to move the price of BWV stock. Its market capitalization is just under $40 million. Shares trade at penny stock levels. This morning, Blue Water stock touched the $4 mark but now changes hands closer to $3.20 per share.
What Happens Next?
Because Blue Water once traded at $90, some traders may speculate that shares could reach those heights again.
Trading volume, however, was highest at the market open. Since then, interest has been falling fast. Moving forward, BWV stock may have trouble keeping its gains from today. Investors who got in early may be left holding the proverbial bag.
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On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.