In the race to develop a coronavirus vaccine, Heat Biologics Inc (NASDAQ: HTBX) is one of the clear leaders. The company recently announced that its work to develop a vaccine in collaboration with the University of Miami is proving fruitful. When the announcement was made the stock soard. After a bit of profit taking, the stock is on its way back up, but the gains that we’re seeing are just the tip of the iceberg for HTBX stock. In fact, a perfect storm is brewing for serious gains. Here’s what’s going on:
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HTBX Stock Could See Dramatic Gains Ahead
As mentioned above, the gains all started with the company’s announcement that its work in the space with the University of Miami is paying off. However, this is just the beginning, the truth of the matter is that there are several catalysts ahead. Just off the top of my head, these come to mind:
First and foremost, investors will be looking for more information with regard to Heat Biologics’ work to develop a coronavirus vaccine. As such, any time the company announces new data or progress in the development process, we can expect to see dramatic gains out of the stock.
Moreover, the United States government just announced that it would be setting aside about $8 billion in funding to help fight the spread of the coronavirus. Of course, this funding isn’t going to go to companies that have just announced that they are working on something, it’s going to go to the companies that have something viable. HTBX fits right in that category.
In fact, knowing that they are a prime candidate for government funding in the fight against COVID-19, the company announced that it has hired a government relations firm based in Washington DC by the name of PACE LLP. The point of hiring the firm was to assist in advancing collaboration efforts and securing government funding from various agencies.
In particular, the government relations firm will look for funding for the company’s newly launched program to develop a vaccine targeting SARS-CoV-2 coronavirus, which causes COVID-19.
The hiring of PACE will bring with it relationships with members of the United States Congress and senior White House Administration officials, including officials within the United States Department of Health and Human Services. These key relationships will likely lead to a funding announcement soon. If this takes place, the stock will see more dramatic gains.
Smart money is seeing opportunity here as well. In fact, Hal Mintz, one of the leading healthcare gurus in the world, is interest in HTBX. In fact, his firm recently purchased $4.3 million shares at $0.35 per share. As a result, his fund owns 7.49% of the company. When smart money like this starts to play ball, it’s time to get involved.
There’s a bit of icing to put on the Heat Biologics cake too. The stock is heavily shorted at the moment. In fact, the short volume on the stock is over 3 million shares. When this thing starts to make a dramatic rise for the top, those who shorted it will take huge losses, forcing them to cover and sending the stock even higher in a short squeeze.
The Bottom Line
The bottom line here is simple. HTBX is creating a perfect storm for serious gains ahead. With institutions buying in as the company leads the charge in the development of a coronavirus vaccine, there are several catalysts ahead. Any one of these catalysts could trigger a short squeeze that causes the stock to gain in multiples.
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