22nd Century Group, Inc (NYSEMKT:XXII) Volumes Pop

22nd Century Group, Inc (NYSEMKT:XXII)

22nd Century Group, Inc. (NYSEMKT:XXII) is a New Zealand company at the forefront of the country’s public policy efforts to eradicate smoking inside its borders by 2025. Today the company announced that Nicotine and Tobacco Research magazine published a new study demonstrating how 22nd Century’s Very Low Nicotine (VLN) cigarettes can be part of an effective strategy to reduce tobacco use. The price of XXII shares have not materially moved but volumes have increased to over four times their daily average and have traded over 1.7 million shares.

VLN cigarettes have the behavioral and sensory aspects of conventional cigarettes while delivering negligible levels of nicotine. Numerous studies indicate that 22nd Century Group, Inc. (NYSEMKT:XXII) VLN cigarettes, with a nicotine content of 0.4mg/g (95% less nicotine than conventional tobacco), do not support addiction. Conducted by scientists from The University of Canterbury and Health New Zealand, the study entitled: Estimating Demand and Cross-Price Elasticity for VLN Content Cigarettes Using a Simulated Demand Task compared demand for regular cigarettes and VLN cigarettes across several price points. The study confirmed that imposing a modest price differential between conventional cigarettes and VLN cigarettes will result in smokers buying more non-addictive VLN cigarettes.

22nd Century Group, Inc. (NYSEMKT:XXII) shares have performed well as of late. XXII shares are up over 19% YTD and up over 41% for the month. Their 52-week low is $0.73 and their 52-Week high is $1.71. 22nd Century Group, Inc. (NYSEMKT:XXII) currently owns or exclusively controls more than 200 issued patents and more than 50 pending patent applications around the world.

Chardan Capital currently rates XXII shares as a “Strong Buy”.

Ticker Symbol XXII
Last Price a/o 12:22 AM EST  $                      1.30
Average Volume                    846,760
Market Cap (mlns)  $                  113.15
Sales (mlns) $12.30
Shares Outstanding (mlns) 87.04
Share Float (mlns) 72.81
Shortable Yes
Optionable Yes
Inside Ownership 1.00%
Short Float 5.65%
Short Interest Ratio 4.86
Quarterly Return 42.86%
YTD Return 19.27%
Year Return 69.93%

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading.