Quick Win by the Algorithm: PTX Rises Pre-Earnings

Quick Win by the Algorithm

On April 18, 2017, the I Know First algorithm issued a bullish 3-month forecast for Pernix Therapeutics Holdings Inc (NASDAQ:PTX). PTX had a signal of 173.64 and a predictability of 0.58. As a result, in accordance with the forecast, the stock increased by 38.08% over a 3-month period, producing a quick win by the algorithm.

PTX Quick Win

Pernix Therapeutics is a unique pharmaceutical company focusing on acquiring, producing, and commercializing prescription drugs in the U.S. market. PNX focuses on speciality areas, including CNS, neurology and psychiatry drugs. Its current brands include SILENOR®- a non-narcotic insomnia drug, and CEDAX®- a middle ear infection antibiotic. The company was founded on 1996 and is headquartered in Morristown, New Jersey. 

PTX Quick Win

Pernix Therapeutics performed well the past 3 months. One reason the stock rose was anticipation for quarterly earnings. During the few days prior to releasing Q1 2017 earnings, the stock increased significantly. Investor optimism centered around Pernix’s Zohydro ER with BeadTek. This drug works as a extended release hydrocodone pill, without acetaminophen. Additionally, makes Zohydro ER unique is it contains various types of beads, each with different release times and characteristics. While earnings did not go as well as expected, traders are still confident about Zohydro moving forward.

Furthermore, Russell added PTX to the Russell Microcap Index. Exposure on any sort of major index helps the company spread awareness of itself to investors and consumers. “The Russell US Indexes are some of the leading US equity benchmarks for institutional investors,”said John Sedor, Chairman and Chief Executive Officer of Pernix Therapeutics. “We believe inclusion in the Russell Microcap Index should increase our visibility in the financial marketplace and broaden our shareholder base since Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies.” Being listed on the index surely led to a trading volume increased, which in turn caused this spike.

Current I Know First subscribers received this bullish forecast on PTX on April 18, 2017. 

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.