Stock Analysis: TMBR

Here we have a biotech offering at $0.64 but the stock has dipped down to $0.53. Timber Pharmaceuticals Announces Pricing of $15 Million Public Offering. In my strategy this is a classic buy the dip opportunity, which you might even want to hold for some time if the swing play doesn’t immediately present itself.

Timber is a biopharmaceutical company focused on the development and commercialization of treatments for rare and orphan dermatologic diseases.

The chart's baseline price in recent months has been in the $1 to $1.20 range. So this is a significant discount.

Recent development on a candidate is positive. Phase 3 study is expected to begin in Q2 2022. So if you can hold on to this for more than six months you could see really decent gains.

The stock has also over 50,000 followers on Stocktwits.

This offering is expected to close on or about November 5, 2022, subject to customary closing conditions.

Timber intends to use the net proceeds from the offering for general corporate purposes, including, but not limited to, ongoing research and pre-clinical studies, clinical trials, the development of new biological and pharmaceutical technologies.

It may also be used for investing in or acquiring companies that are synergistic with or complementary to the company’s technologies, and licensing activities related to the company’s current and future product candidates and working capital.

The volatility, especially in short volume from short interest API, in biotech penny stocks can really be a significant driver if you can get in on them at low risk mitigation price points.

Analysts are not overly bullish about this company. People living with CI may have limited range of motion, chronic itching, an inability to sweat, high risk of secondary infections.

There are no approved medications for CI and the current common management of this chronic disease is focused on reducing scaling or improving skin lubrication with both systemic and topical treatments.

Considering the 50% discount on the stock, I believe that it’s a decent swing or long-term position entry. Always do your own due diligence and verify that my hunch is correct. Also I would not take too much risk on this name.