AeroClean (NASDAQ:AERC) stock is getting a great deal of attention from investors after the company yesterday disclosed that the Food and Drug Administration (FDA) has designated its air purification system as a “Class II Medical Device.” AERC stock soared 100% yesterday, but it has fallen over 15% in early trading today.
AeroClean’s air purification device, the Purgo, is “proven to eliminate 99.99% of harmful airborne microorganisms, including bacteria, fungi and viruses, like COVID-19,” AeroClean explained. The company noted that it sells “air purification and air sanitization technology” to “healthcare facilities, businesses, hospitality venues and government agencies.”
Despite the huge rally of AERC stock yesterday, the shares are still changing hands for less than 4% of the name’s 52-week high of $117. Also notable is that AeroClean has an enterprise value of $19.5 million, according to Yahoo Finance.
In the last five days, the shares have jumped 88%, but they have tumbled 60% so far this year. AERC stock currently sits in penny stock territory at around $4 a share.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.