They say money is attracted to speed. 

And with tickers like IMGN moving +200%, MRSN 89%, and MDJH surging by 88% this week…

The fast money has their eyes set on biotech stocks. 

That’s why every promoter email highlighting a biotech right now is a MUST READ. 

What’s the latest biotech opportunity I’ve heard about?

Well, that’s ProPhase Labs (NASD: PRPH)...A low float biotech stock with a history of making monster moves. 

ProPhase Labs (NASDAQ: PRPH)

• 1-month trading range: $7.55 - $9.40
• Typical average daily volume: 49,000
• Float: ~12.8 million

ProPhase Labs Business

Prophase Labs is a company focused on improving people’s health and well-being. They use advanced technology to understand people’s genetic information and develop innovative solutions to help detect and fight cancer. 

Their world-class CLIA lab and diagnostic tools are designed to provide wellness solutions for both healthcare providers and individuals. 

ProPhase’s technology analyzes all the genes in a person’s DNA (called Whole Genome Sequencing) and uses this information to create better ways to detect and treat cancer. 

These new methods could be very important in changing the way we fight cancer. 

The company’s portfolio includes:

• Nebula Genomics: The pioneers and leader in Whole Genomic Sequencing.
• ProPhase Biopharma: Licensing, development, and commercialization of two broad-based anti-virals and two small molecule PIM kinase inhibitors. 
• ProPhase Diagnostics: Diagnostic lab services with a complete clinical lab offering, including chemistry, immunoassay, upper respiratory hematology, hemostasis, and urinalysis. 
• Pharmaloz Manufacturing: The company’s contract manufacturing arm.  
• TK Supplements: Supplement company selling OTC energy and sexual vitality products found in drug stores across the country. 

 The latest news coming out of ProPhase came earlier this week on Wednesday when it announced that its Linebacker-1 Cancer Therapeutic is a potential mono-therapy and co-therapy for hard-to-treat cancers. 

Financials

Source: Stockanalysis.com 

Unlike some of the stocks I cover here…PRPH actually has some revenues. 

In fact, the company has experienced phenomenal growth over the past three years. It has gone from $9.88 million in revenues in 2019 to $122.65 million in revenues in 2022. 

Not only that, but the company is profitable. 

It has an impressive 15% profit margin and a 19.2% operating margin. 

More importantly, its balance sheet is rock solid. The firm has $17.4 million in total cash with just $6.9 million in total debt. 

All you value lovers will be satisfied to hear that the company’s return on equity is +30%. 

Its operating cash flow of $28.55 million is also outstanding compared to most of the promoted stocks we review. 

Promoter Activity

I’ve received a couple of emails about this promotion from one firm. 

Here are the highlights :

• Nov 2022 - A 2-year collaboration with Dana-Farber Cancer Institute
• Jan 2023 - The worldwide exclusive rights to the Be-Smarter Esophageal Pre-Cancer screening test
• Feb 2, 2023 - Potential for Linebacker-1 to become a breakthrough drug in the fight against cancer
• May 1, 2023 - $20 price target from Diamond Equity Research
• Strong revenue growth over the last few years
• Insiders own 20% of the stock
• The company has two state of the art CLIA accredited laboratories

The only recent news item is the price target from Diamond, which is interesting but a huge catalyst.

Instead, I’m looking at the company’s earnings which are coming up on May 11.

Of course, if you want to attract traders, then you better talk about price action, and the promoter didn’t disappoint. 

They mention that PRPH shares broke above the key 50-day moving average, a bullish sign and something momentum traders pay attention to. 

In addition, they shine a light on the company’s CEO, Ted Karkus. Ted’s  been recognized by Inc Magazine as one of the 10 most influential healthcare leaders to watch in 2023.  

The promoter believes with the encouraging news in Linebacker-1 and the bullish price action in the stock…it has a shot at $10+

For this campaign, the promoter has compensated a fee of $95,000 for a one-day profile performed on May 3rd.

Straight to the Facts

PRPH is in a red-hot sector. 

The company has some strong fundamentals. But people usually don’t trade these stocks based on the fundamentals. They are more interested in playing them for the hopes of quick profits. 

It’s possible we could see a pop in PRPH. 

Pay attention to the trading volume, it can get real interesting if it can start trading over 1.5 million shares. 

The company is set to release its Q1 earnings on May 11,2023. 

We could see a potential runup into that event.

Another possibility is if a stock in a similar sector starts catching a bid, PRPH could work as a sympathy play. 

Always at your service,

Baron Von Stocks

Disclosure: I am not a fin-an-cial adviser. All potential percentage gains are based on from the low to the high of day. Prime Tech Stocks full disclosure is to be read and fully understood before using Prime Tech Stocks website, or joining Prime Tech Stocks’ email or text list. By viewing Prime Tech Stocks website and/or reading Prime Tech Stocks email or text newsletter you are agreeing to Prime Tech Stocks full disclosure which can be read at www (dot) primetechstocks (dot) com/disclosure/ Make sure to always do your own research and due diligence on any day and swing profile brought to your attention. Prime Tech Stocks owned by Red Oak Media Group LLC, a limited liability company. Red Oak Media Group's full disclosure document can be read at www (dot) primetechstocks (dot) com/disclosure/ 

We do not own any shares in PRPH. We have been compensated up to Ten Thousand Three Dollars via bank wire transfer from a third-party IA Media LLC for a 1 Day Marketing Program regarding PRPH with a start date of 5/4/2023 to 5/5/2023.