China Pharma Holdings CPHI Stock News

China Pharma Holdings, Inc. (NYSEAMERICAN: CPHI) is rocketing this morning, trading on gains of more than 50% early on. If you go digging for news, you’re not going to find any, but there is a good reason for the run. It seems as though the coronavirus has triggered a short squeeze. Here’s what’s going on.

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Why CPHI Stock Is Soaring

After seeing that no press releases or SEC filings came out of China Pharma Holdings this morning, I took to social media to see if I could find the catalyst that started the short squeeze. What I found is what I believe to be a clear reason for the run.

All over StockTwits and other investing-related social media platforms, I’m seeing posts surrounding the strategic positioning of the company in the midst of a deadly outbreak. Ultimately, the new virus known as coronavirus is spreading through China and has found its way to different areas around the world.

While there are no approved products that are designed to treat coronavirus, the virus is an upper respiratory viral infection. This is where the strategic positioning of CPHI comes in.

The company has several drugs on the Chinese market that are designed to treat the same types of symptoms that patients dealing with the coronavirus are experiencing. As such, the company’s already approved treatments may lead to the company being able to treat the condition.

Moreover, CPHI currently owns the only bio manufacturing facility near the epicenter of the outbreak in China. So, not only does the company have drugs that may treat coronavirus, it has the facility and ability to make the treatments and get them to the targeted patient population very quickly.

As investors start to realize the strategic advantage that the company has when it comes to the treatment of the coronavirus, we’re starting to see strong upward movement.

In fact, before today, CPHI was a pretty heavily shorted stock. Considering the upward movement, those with short positions are losing money quickly. This generally leads to short sellers racing to buy shares in an attempt to cover their positions and cut the bleeding. All in all, this is what a short squeeze is made of.

What’s Next?

Really, there’s no telling what’s in store for China Pharma Holdings. There’s no doubt that we’re likely to see some profit taking when investors feel the time is right, but after that, this may be a huge opportunity.

After all, if CPHI does indeed announce that it is working to treat the coronavirus, given its strategic advantages, the stock could soar as the treatment could quickly become a blockbuster. At the end of the day, only time will tell what happens next, but the stock seems like a pretty strong bet!

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4 COMMENTS

  1. CPHI is going to Spike Massively they have the cure Caronavirus vaccine and as soon as they tweak it and prove that it works, were looking at a $20.00 stock. RATED A STRONG BUY AND HOLD!!

    • There is no proof that they have a cure. What they do have is several treatments for upper respiratory infection, one or more of which may relieve symptoms and potentially offer positive outcomes for these patients.

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