Replies to post #38313 on 22nd Century Group Inc (XXII)

[Justfactsmam]

it did not need a "hit piece"...the jury is still out...and hot money is leaving...and opposite affect of upgrade further affects cred.

[rootus99]

An entirely predictable and orderly decline in pps based upon the reality of 20M+ new shares, many of them hitting the market, so that the investors can begin profiting, and the reality of the dilution associated therewith.

Do not, however, overlook the active and capable communications department at xxii, who have proven that they know how to stockpile and release intriguing information in a manner intended to blunt the effects of perceived negativity and in a manner designed to stimulate the interest of existing investors with dry powder, and new investors, as well.

Had BAT exercised, the offering would not have been necessary IMHO, and it is becoming clearer to me that the company knew for some time, despite representations to the contrary that BAT was not going to exercise and arrangements for the deal were well underway.

We have to play the hand we've been dealt and really nothing changes about the reasons we invested here in the first place, other than a reduction in confidence by virtue of BAT's rejection and our perception of an awareness by management that a potential deal with big tobacco could be much farther away than had originally been hoped.

[Bubbster]

Why 22nd Century Group Stock Briefly Spiked Monday

22nd Century Group may be ready to take flight as a result of the FDA's latest tobacco harm reduction initiative.

The Motley Fool George Budwell Oct 17, 2017 at 8:00AM

What happened
Shares of 22nd Century Group (NYSEMKT:XXII), a plant biotech company focusing on the development of low nicotine cigarettes and smoking cessation aids, jumped by as much as 10.7% yesterday before ultimately ending the day up 2.14%. This brief double-digit rally was sparked by a new 12-month price target from Chardan Capital Markets analyst James McIlree.

So what
What really appears to have caught investors' eye yesterday, however, was the magnitude of the price target increase. Specifically, Mcllree's new price target of $11.50 (up from $3.50) implies an upside potential of a whopping 310% compared to where the stock opened on Monday.

Now what
Although Mcllree's revised outlook was light on specifics, his central thesis appears to revolve around the latest tobacco harm reduction initiative from the U.S. Food and Drug Administration, or FDA. In short, 22nd Century Group's low nicotine cigarette platform may end up benefiting immensely from the FDA's new mandate, under the Family Smoking Prevention and Tobacco Control Act, calling for all combustible cigarettes sold in the United States to contain nicotine levels that are nonaddictive.

While 22nd Century Group does appear to be getting into the low nicotine cigarette game at almost the perfect time, there are still some good reasons to remain cautious with this speculative biotech stock right now. Big tobacco's ginormous lobbying machine, after all, could ultimately blunt the FDA's plans, and that would spell disaster for companies like 22nd Century Group that are counting on this latest regulatory overhaul to spur revenue growth in the years ahead. Thus, this promising small-cap biotech arguably isn't well suited for investors that are adverse to risk -- despite its tremendous upside potential.

George Budwell has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

https://www.fool.com/investing/2017/10/17/why-22nd-century-group-stock-briefly-spiked-today.aspx