Why is Innocoll Holdings PLC (NASDAQ:INNL) Favored by Traders?

Innocoll Holdings PLC (NASDAQ:INNL)

Innocoll Holdings PLC (NASDAQ:INNL) hit an inter-day high of $1.40 which translates into a 33.3% gain for the Ireland-based biotech firm. Today’s positive price in shares of INNL action is interesting in that there appears to be no news that typically accompanies such moves in nano-cap stocks. The latest news, remarkably, was yesterday and that was to remind the public that a class-action lawsuit is underway against the firm.

Existing, commercialized products that have passed through regulatory approvals include CollaGUARD® (ex-US), COLLATAMP® G, SEPTOCOLL® E, REGENEPRO®, COLLACARE®, COLLEXA®, and ZORPREVA®. Strategic partners throughout the world market these products. This group includes Takeda, EUSA Pharma, Biomet 3i, and Biomet. Innocoll Holdings PLC (NASDAQ:INNL) has its manufacturing facility in Saal, Germany.

Innocoll Holdings PLC (NASDAQ:INNL) develops products that reduce pain and treat the threat of infection in limbs that could follow surgery. Innocoll has completed a Phase 3 study for their INL-001. INL-001 was developed by Innocoll to address post-surgery analgesia. Also completing a Phase 3 trial was Innocoll’s INL-002. INL-002 was developed treat diabetic foot infections. Outside the USA, Innocoll has attained approval for INL-003 which was developed to prevent post-surgical adhesions.

Innocoll Holdings PLC (NASDAQ:INNL) has a 52-week low of $0.53 and a 52-week high of $12.94 – INNL is currently trading over 90% below its 52-week highs. However this month INNL shares are up over 54% even though they are down over 86% for the year. The average daily volume for INNL is large – the figure is in excess of 1 million shares traded daily. This depth of liquidity is one reason INNL shares are a favorite of traders.

Sales have improved from 2015 when Innocoll Holdings PLC (NASDAQ:INNL) reported a figure of $2.8 million. In 2016 that sales figure improved to $4.7 million. Earnings for INNL shareholders have been harder to come by. EPS for INNL shares were a disappointing loss of -$27.49 in 2015. In 2016 the company reported a net loss attributable to ordinary shareholders of -$2.12. Innocoll Holdings PLC (NASDAQ:INNL) reported a cash position of $15.8 million at the end of 2016. Published reports put that figure as $0.56 per share of INNL.

3/22/2017
Ticker Symbol INNL
Last Price a/o 2:19 PM EST  $                      1.29
Average Volume                1,090,000
Market Cap (mlns)  $                    31.25
Sales (mlns) $4.90
Shares Outstanding (mlns) 29.76
Share Float (mlns) 21.45
Shortable No
Optionable No
Inside Ownership 10.70%
Short Float 2.23%
Short Interest Ratio 0.44
Quarterly Return -52.49%
YTD Return 52.17%
Year Return -86.88%

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.

Author: Steve Clark

Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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