- The variety of Tiziana Life Sciences’ investors on Robinhood climbed by almost double Tesla’s number.
- There’s speculation that the biotech firm’s stock ticker symbol has been mistaken with Tesla’s.
- One Tesla share prices over 200 times the price of a Tiziana share.
The inventory of biotech company Tiziana Life Sciences (NASDAQ:TLSA) was the second-most bought on Robinhood Friday. In one day, it added over 13,000 investors.
With Tiziana’s ticker symbol looking quite like Tesla’s (NASDAQ:TSLA), you could be forgiven for confusing one to another.
It could be sensible to conclude that Friday’s surge was mainly attributed to millennial investors piling into TLSA thinking they are buying Tesla. However there might be more to the story.
Tiziana Joins the Rush to Gain from the Pandemic
The massive buying of Tiziana’s stock coincided with the biotech firm submitting a patent application which could possibly see it cash in on the pandemic.
Specifically, the patent application covers the use of its immunomodulator known as Foralumab for its treatment of COVID-19. An immunomodulator is a chemical agent that stimulates antibody response to resist disease. Foralumab is administered via the nose or mouth.
This advice caused the stock to spike. On Friday, Tiziana’s inventory closed 41. 27% higher. At one point, the stock had climbed by 145percent before paring gains.
Tesla Was Falling as Tiziana Rose.
Tesla, meanwhile, has been on a losing streak for the last couple of days. Tesla shut. Since hitting a record high of almost $1,800 before in July, the stock has dropped about 20%.
If Robinhood investors were buying believing it was Tesla, there was not anything substance they had been acting on. At a time when Tesla was declining, the Friday buying wasn’t reflected.
This isn’t the first time that possible confusion between the ticker symbols has been attributed to big movements for TLSA.
Last month, it had been speculated that Tiziana’s stock was rising due to a potential stock ticker symbol mixup with Tesla’s. Among those who advanced this argument included Nilesh Shah, who boasts of over 400,000 Twitter followers.
Too Convenient to Blame It on a Stock Ticker Mixup?
The previous rally collaborated with Tiziana declaring it had filed a patent application covering the usage of Foralumab in boosting the CAR-T treatment for the treatment of cancers and other ailments.
About a week later, the stock fell. The decline was blamed on how the confusion had been cleared up.
This, too, coincided with Tiziana announcing the practice of 88,580 warrants, that would have resulted in dilution–a perfectly reasonable reason for investors to sell.
There might be some investors that are buying and selling Tiziana’s inventory, thinking it’s Tesla. Given these significant price moves are happening around material statements, the confusion is probably limited to only a few. Many are acting based on principles.
Plus, the various prices of the two stocks are worlds apart–TLSA is in the single digits while TSLA is trading in four amounts.
Disclaimer: This report represents the author’s opinion and should not be considered trading or investment advice from CCN.com. The author holds no investment position from the above-mentioned securities unless otherwise noted.
Last modified: August 1, 2020 3: 13 PM UTC