The Street’s Feuerstein says Cyclacel traders manipulate stock
Shares of Cyclacel Pharmaceuticals Inc CYCC 27.26% continued trading higher on Tuesday after Monday’s strong gains.
Cyclacel issued a press release over the weekend which detailed a presentation from independent investigators. The investigation highlighted the therapeutic potential of Cyclacel’s CYC065 therapy for the treatment of cancer. Specifically, the data found that CYC065 substantially inhibited growth, triggered apoptosis, and induced anaphase catastrophe in murine and human lung cancer cells with known high metastatic potential.
Shares of Cyclacel opened for trading on Monday at $4.59 and hit an intra-day high of $6.59 before settling at $6.42. But the stock opened notably higher on Tuesday at $7.95 and traded as high as $10.90 before giving up some of the gains but still up more than 30 percent for the day.
At one point on Tuesday shares of Cyclacel had gained 160 percent over the past two trading sessions, which may indicate signs of stock manipulation.
The Street’s Adam Feuerstein tweeted that Cyclacel is “a zero” and investors buying the stock are “trading worthless pieces of paper.” Moreover, the biotech pro highlighted the rampant and common manipulation in “down-and-out, micro-cap biotech stocks.”
Feuerstein also highlighted how social-media platforms can help manipulate low-float stocks and the regulators need to play a bigger role since at the end of the day regular investors often get hurt.
“The blatant manipulation of down-and-out, micro-cap biotech stocks is out of control. Regulators should step in. $CYCC,” he tweeted.
UPDATE: Feuerstein will be coming on Benzinga’s PreMarket Prep Wednesday morning at 8:50 ET to discuss the Cyclacel story and general manipulation in small-cap biotech. You can listen here.