How to Play HCMC Stock Ahead of Philip Morris Lawsuit Ruling

Healthier Choices Management (HCMC) stock popped up more than 12 percent on July 20. The stock has gained 800 percent since the beginning of 2021. Many investors want to know about the company and HCMC's stock price forecast. Will HCMC stock go up more and should you buy it now?

Healthier Choices is headquartered in Florida and has been around since 1985. The company focuses on providing healthier alternatives to everyday items from foods to lifestyle gadgets. It has several subsidiaries and has built a large portfolio of patents. One of the subsidiaries operates retail outlets selling vaping products. Another unit is mandated with marketing the intellectual property.

On July 19, Healthier Choices announced a new patent win as it continues to grow its portfolio of intellectual assets. The new patent relates to a groundbreaking vaping cartridge technology. Healthier Choices said that it was considering making or partnering to produce vapes that feature its newly patented technology. Excited about the patent and its commercial potential, investors rushed to buy more HCMC shares.

The rise in Healthier Choices stock might be attributed to investors seeking cheap stocks to buy the dip following the recent sell-off. With the stock trading under $1, investors see tremendous upside potential as the company continues to innovate and consumers shift to healthy products.

Healthier Choices protects its patents with great vigor. It sued cigarette giant Philip Morris International (PM) and accused it of infringing on its patent. The case is still in court and a ruling is expected at any moment. Many investors expect HCMC stock to rise more if the court rules in its favor in the Philip Morris patent lawsuit.

However, Healthier Choices’ patent dispute with Philip Morris recently took another turn. Philip Morris is seeking to invalidate the patent that Healthier Choices accuses it of infringing. Therefore, the anticipated court ruling might not be the end of the patent dispute.

In April, Healthier Choices announced a rights issue to raise money to spend toward expanding and defending its patents. Management took that opportunity to clarify the issue of a reverse stock split. It said that there aren't any current plans for a reverse HCMC stock split. Management stated that if the board decides that a reverse split is needed, a plan to do so would be communicated to shareholders and their approval would be obtained.

There aren't any Wall Street target prices for HCMC stock to look at right now. Many investors expect the Philip Morris patent lawsuit ruling to be a major catalyst for Healthier Choices stock.

All investments come with risks and investing in penny stocks can carry elevated risk. Still, penny stocks can deliver huge gains in a short period. If you have money that you can afford to lose and you're looking for a cheap stock to buy, HCMC stock could be a good bet ahead of the ruling on the Philip Morris patent lawsuit.