Here's Why MannKind Briefly Spiked Today

What happened

Shares of MannKind (NASDAQ: MNKD)  rose as much as 16% in early morning trading on Monday before settling down. As of 3:45 p.m. EST, the stock was up just 2%.

So what

The brief spike can be credited to CEO Michael Castagna, who gave a presentation today at the Noble Capital Markets meeting in Florida discussing the company's recent highlights and opportunities ahead.

The presentation was light on new information, but we did learn that an Investigational New Drug (IND) application for its pulmonary hypertension product candidate was submitted today. That's good news, but it's hard to get excited since the product is at least two years away from hitting the market in a best-case scenario.

Given the stock's recent uptick in volatility , it isn't surprising to see that shareholders had to experience yet another roller-coaster ride today.

Hand holding Afrezza

Image source: MannKind Corporation.

Now what

Mannkind's short interest remains very high, so the stock is likely to trade erratically for the foreseeable future. That's why investors need to remain heads-down focused on Afrezza's sales volume and do their best to ignore the day-to-day market gyrations.

We recently learned that script volume is trending in the right direction , but, unfortunately, it's still nowhere near high enough for the company to eke out a profit.

Will management's recent actions and Afrezza's label change  spur significant sales volume growth in 2018? That remains to be seen. However, I think that investors' time and capital are better spent elsewhere until we see the company prove that Afrezza is building traction.

10 stocks we like better than MannKind Corporation
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and MannKind Corporation wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of January 2, 2018

Brian Feroldi 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 .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Personal Finance , Stocks
Referenced Symbols: MNKD

More from Motley Fool


Motley Fool

Motley Fool

Market News, Investing

Research Brokers before you trade

Want to trade FX?