A pivot towards reselling Chinese-made coronavirus antibody tests in the U.S. has transformed tiny Aytu Bioscience (AYTU) into an overnight Covid-19 success story, with a soaring share price to match.
But the retail-investor frenzy behind the company’s unprecedented surge since early March disregards numerous risks and red flags. Any or all of them could send its stock price crashing lower. The Covid-19 pandemic has been devastating, but it will end — and so will the stock market bubble in micro-cap companies like Aytu.
Before Covid-19 came along, Aytu was a floundering peddler of vibrators, erectile dysfunction pills, testosterone sprays, cough syrup and children’s fluoride supplements.