Investors Remain Excited About IntelGenx Technologies Corp. (OTCMKTS:IGXT)

Since the start of April the company IntelGenx Technologies Corp. (OTCMKTS:IGXT) has been constantly shedding more and more of its share price. In around 7 months the stock has dropped from nearly $1.10 to a new 52-week low of $0.33 posted just three weeks ago. The losses have been devastating but it seems that the depressing trend has finally been reversed.

On November 20 IGXT began surging up the chart and the positive momentum behind the stock is still holding strong. On Friday despite the limited trading session investors managed to shift over 339 thousand shares which is more than doubles the average amount for the company. The stock gained 11% and closed at $0.60. 

It is safe to say that investors’ support for the stock is rather robust. Even the fact that last Wednesday IGXT were halted from trading was simply ignored by the market and on the very next day the ticker continued climbing up the chart. Some traders speculate that the trading halt was caused by the PR that was issued half an hour before the start of Wednesday’s session. In it the company announced that it has settled its Paragraph IV litigation with Wockhardt Bio AG but didn’t reveal any specific details. The lack of information could have been the reason for the halt.

On November 26 an update was released and this time investors learned that Wockhardt now have the rights to market and distribute a generic version of IGXT’s Forfivo XL in the U.S. starting from January 15, 2018. This Wednesday a conference call will be held during which the company is going to discuss the settlement in greater detail. If investors are not happy with the terms of the settlement the stock could once again plunge downwards.

Still, IGXT is quite a solid venture especially when compared to the majority of the pennystock companies. The latest quarterly report contained the following numbers:

• $4.4 million cash
• $4.7 million total current assets
• $625 total current liabilities
• $452 thousand revenues
• $434 thousand net loss

With a sizable cash position and positive working capital of $4 million IGXT’s balance sheet looks rather encouraging. Although they are still incurring losses the revenues have experienced a significant growth compared to $222 thousand reported at the end of the first quarter of the year.

Nevertheless, in the short-term the direction of the stock is going to be decided by the conference call. Be sure to take into account all the possible outcomes and adjust your position accordingly.