Investors who are on the lookout for stocks that might have recorded notable gains in premarket trading today might consider having a look at the 22nd Century Group (NYSE: XXII) stock.
The stock has gone up 5% in premarket trading today to add to the 10% that it recorded during yesterday’s trading session. Despite being a loss-making company, 22nd Century Group has seen its stock go up considerably this year.
While it is true that many investors are known to back companies for growth but it is important to figure out if 22nd Century Group’s cash burn is too risky for the company’s long-term prospects. Investors might find it a bit problematic that the company raised its cash burn by 3% in 2020. That being said, its revenues also rose by 8.8% during the period. Hence, it might be argued that eventually, the company’s growth might actually surpass its cash burn.