Don’t worry. There’s no bubble! Part 276!

Aquinox Pharmaceuticals (AQXP), an IPO in March 2014 was just another of those “no sales’ biotechs foisted upon the public by the lovelies who continue to put a ton of this stuff into the market. Unlike many soaring “no sales” names, the stock did nothing.  This led to July 9th where the stock got hit hard from $7 down to $2 because of a bad drug trial.

But somehow, just a month later, that same drug was all of a sudden a hit during trials. We will not quibble with that. But something else happened. The stock went from $2 to $11 in just one day this past Friday. But that was nothing. Just yesterday, off the Friday news, the stock went from $11 to $55 and that was by 1015 am. Unfortunately, it finished the day under $19. Anyone who bought in at 1015 had a bad day. Let me be clear on this, someone was willing to buy this stock at $55 even though 2 days before it was less than $2 and even though the company is still a long way away from any sales. But guess what happens this morning? As we write this, the stock is up over $6 premarket…a measly 30% gain on nothing. But don’t worry. There is no bubble. Just ask Janet!