MHAN: 2011 is turning out to be quite a decent year already for shareholders and traders of Manhattan Pharmaceuticals. Just two weeks after the resolution of a share dispute between Manhattan and its Hedrin joint venture partner surged shares to a quick quadruple in price, the company added news regarding another product to close out the month of January on a high note.
Monday's announcement stated that Manhattan's Board of Directors intended to continue the development of AST-915, an oral treatment for essential tremor, based on the encouraging Phase I/II results that were announced late last year.
As per the terms of the merger agreement between Manhattan and now-wholly-owned-subsidiary Ariston Pharmaceuticals, MHAN will issue 8,828,029 shares of its common stock to debt holders and former shareholders of Ariston.
The sharp spike to nearly six cents after the announcement did not last long - as was the case with the run to eight cents earlier in the month - but investors and traders were awarded another short-term treat from a stock that was stagnant for the better part of a year before January, 2011.
MHAN had touched two cents again in between the two spikes.
Another positive note about the encouraging opening of the new year for this company is that Manhattan may be - slowly but surely - establishing itself once again as a legitimate contender for long term success.
However, before getting too far ahead of myself, I believe investors in MHAN should be holding well more trading shares than core shares intended for the long run.
Any dip back to two cents will be re-load time again, in my opinion; who knows - another double or triple in the works again for the short term?
Disclosure: Long MHAN.