- NASDAQ: CEMI has soared by over 60% on Monday, hitting the highest since February.
- The FDA granted Chembio Diagnostics Inc approval to market rapid COVID-19 tests.
- Profit-taking may be seen on Tuesday, a natural correction after the surge.
Two tests in one and a result in 15 minutes – that is the promise of rapid covid and flu rapid probes made by Chembio Diagnostics Inc (NASDAQ: CEMI). Its product has been in the works for long months and allows medical staff to instantly know what patients are suffering from and how to treat them.
The big news that has sent shares of the Medford, New York-based company to the skies came from Washington. The Food and Drugs Administration has given the green light to Chembio's product, allowing the immediate commercialization of it.
Stay up to speed with hot stocks' news!
Apart from bringing another rapid COVID-19 test to market in still troubled times, the firm's multiple tests show it can be used for both Type A and Type B influenza – and perhaps in the future to different variants of SARS-Cov-2, the virus behind the current disease. Additional coronaviruses may also appear in the future, and Chembio's multiple tests may be adequate for that as well.
While America's vaccination campaign continues at full speed, other places are moving at a slower pace, and demand will likely continue into 2022. Chembio has a subsidiary in Brazil, which is suffering from a severe wave of covid dominated by homegrown variants.
What does that mean for CEMI shares?
CEMI Stock Price
NASDAQ: CEMI has surged by 60.23% on Monday in response to the news, closing at $5.64, and that places it back at prices seen in February. It still has room to rise until the 2021 peak at $8 – and the $15.69 52-week high.
On the other hand, Tuesday's premarket trading information is pointing to a drop of over 6% to $5.27. A correction of 6% after 60% seems modest, and a deeper sell-off cannot be ruled out. On the other hand, receiving approval from the FDA is game-changing news for the company.
At the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
This article is for information purposes only. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. It is important to perform your own research before making any investment and take independent advice from a registered investment advisor.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to accuracy, completeness, or the suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. The author will not be held responsible for information that is found at the end of links posted on this page.
Errors and omissions excepted.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.