Another day in the life a stock price, that's all these movements are to me. As for your reverse-split prediction posts, I'm just hearing differences between day traders and investors mentality. I see no reason to change my position on the account of what I regard a non-fundamental post. The company's ability to deliver on a successful science has not changed. Their clinical process has not received bad news. Nor is the company at risk at this point of having to do a raise capital at this moment in time. The share count is not at risk of any serious dilution. The NASDAQ exchange gets that the price can rise and fall due to reverse splits reducing in share counts. And so they do not want a company that is at risk to get on exchange to then be booted immediately off. There is a reason why one of the requirements of an up-list that the company's have enough cash on-hand to weather the period of possible penny-trading market manipulation. That is why they require market readiness. Companies need clean books to qualify. Reverse splits represents an opportunity for market makers to make money. I do not see the immense risks that you do. But, that's because I'm an investor. I see the potential in the company's pipeline and I believe that over time the company's investment base will grow. If you had shared with me reasons to suggest that there was a fundamental issue with the company to proceed as a going concern you would have my attention. If you had shared information that reduced their chance of future clinical success I might consider reducing risk then. But that is not and has not been the case here. Hopefully that makes sense.
I have watched you develop what has become the mindset of a day-trader. I truly hope it works out well for you. I like you. You post about where you thinks the stock price is heading a lot lately. They are doom and gloom predictions. You seem very concerned about stocks pricing falling on a number of iHub sites. I have been concerned in the past too. But I explained why. There was rationale behind it. It was always fundamentally-based. The company in question had a seriously high quarterly run-rate and was raising money while they were silent on news. The study was on a screening hold to which they were in talks with regulators and we still do not know what it was about. It was being written about negatively in the press. Their biggest investor had asked that the company address a short research anonymous report which was full of damning allegations. When I warned you that the market cap could go from $600+ million to under $50 million it was fundamentally based. The stock was being heavily shorted. The company eventually was under investigation. They were being sued over misleading tendencies. Pessimism was hurting market sentiment. And once it fell below the FR-rule it would get progressively worse. I know you see that. It was why I told you early on that the supports were of risk of falling and it was not impossible for me to imagine a $10 stock falling to the $.70s. I explained that they would continue to raise capital, to fund the study, and that the number of shares needed to do so would grow, depleting some of the growth potential. At the time a MFN clause was in effect. And I also told you the company could be silent and not give us updates and how that could hurt their ability to raise at fair valuations. Please tell me that you recognize the difference in the warnings we gave each other. I had concerns and I got you to see the fundamental storm that was brewing. But you having a harder time recognizing that even storms can pass. It was beaten down and dragged in the mud but even investors can't be pulled away to sellout. Its going to come down to a binary event soon. A make or break point and investors don't want to miss it. There are no guarantees of success on that study. I think it will end positive, but I do believe that at least on PFS it may be close.. I am convinced that regulators will care most about whether it is helping patients and I believe in that regard it does. Whatever is decided, one of the way it could rise or fall sharply. Again that would be fundamentally based, a clinical outcome. My advice about the stock price was vastly different from your R/S prediction post. The moves that occur here without capital being raised matter more to day traders. Investors understand that investing in biotech's can be volatile. Sudden moves that has no bearing and can be corrected with positive sentiment. Hopefully you see that your posts are about stock price predictions without any company fundamental change is basically just calling attention to market maker manipulations. Your posts are about your buy and sell moves in response. I tend not to share mine. I don't consider myself a day trader. I consider myself an investor. I don't think that one is necessarily wrong or one is necessarily right. It's a free market. Both can make money. Both do. But your reaction stems from a different mindset and mentality than mine. I'm more concerned about the science. I look for a company that I perceive will be worth a lot more in the future. And then I establish a position over time. Unless something changes with the fundamentals of the company, I don't consider selling out. And as such, the daily fluctuation of the stock price is inconsequential unless it catches my attention for some "fundamental" reason. If it doesn't, it's just another day in the life of the company stock price.
Let's chat about day traders for a second. Do you know what will happens when one only focuses on stock movements? They miss opportunities. Why? Shares are treated like dollar bills. Day trader release some of all of their shares as the stock rises and falls. The focus becomes making and saving money. They are too busy trying to make money, that often they trade their way right out of their position. They are too busy trying to save their money, that often they trade their way out of their position. For instance, quite a few posts lately have been about sales. Quite a few are about drops. And some buys. Day traders are concerned about being underwater. This fear over the reverse split is quite apparent. They are afraid to be down on their holdings in anticipation of a possible market reaction around it. Shares represents money to them. And so if they think the stock is going to drop, they sell out. We don't hear if they made money on their sales. Some do. I certainly hope you did and continue to. But mostly I think they do not. Imagine, the stock drops 22% one day. The day trader is patting themselves on their own backs. They missed the fall. They are happy. They knew it was coming. They warned shareholders. But watch what happens afterwards. The drop was a falling knife. It was a flash sale. It's higher than where it touched down. They have no idea where the bottom is. They get consumed with waiting for the right buy opportunity. Day traders become too scared to buy a significant position. They actually begin to lose the ability to spot what is a good opportunity. Since at times they hold no shares they stop knowing what is a good deal and what isn't. They become frozen. They begin to confuse the stock price for the company fundamentals. They will always think that it might fall and so they won't ever take the plunge to ever buy enough shares. They freak themselves out to ever hold anything of substance, for any period of time. And so their position in the company gets smaller and smaller over time. It rarely ever gets larger. And should the stock begin to rise and they may even pass on the opportunity to buy, as they don't have enough confidence in the stock price will hold. They refuse to buy at the higher price point, and then often end up with no shares in the end. It's about the dollars. And if it is golden stock it will make them money. But often never as much as if they had just held onto to their gold. Regrets if it ends up being gold that they undersold. One would hope if it wasn't gold, the day trader would spot it to sell out before it turns to stone along with their money. Rises and falls matter here. Fundamentals don't matter as much.
The shareholder mentality is different. Shares are treated like gold. I say that metaphorically. But that is truly the way they are regarded by some investors. It doesn't matter if the market is paying attention to silver or platinum this week or next. Shareholders buy because they perceive they bought something of value. They bought gold. Now the price of gold rises and it falls. A shareholder makes money too. A good one understands how to let go of some gold without losing the gold pot. Only a few is released as it rises. And then if it ever drops anything of significance, the shareholder's hands are itching to pick those pieces that they sold. They honestly didn't like to let them go in the first place. But they get that the market rises and falls. And they do need some money free to buy just in case it falls. Imagine, the stock drops 22% one day. The shareholder is patting themselves on their own backs. They have their sale price. They are very happy. They knew this day could come. They were prepared for it. They heeded no warnings. They did not sell into the knife. They sold shares under fair conditions. They balance their portfolio. They understand that gold prices rise and fall. All stocks do. But watch what happens afterwards. The drop was a falling knife. It was a flash sale. It's higher than where it touched down to. They have no idea where the bottom is. They were not consumed with waiting for the right buy opportunity. Shareholder are not too scared to buy a sale. They maintain a significant position. They actually begin to acquire the ability to spot what is a good add opportunity. Since at all times they hold shares they always know what is a good deal and what isn't. They are never frozen. Their risks fluctuates only by a margin. And only at strategic points. There isn't an all-in or all-out. There is the ability to let some go as it rises. To prepare for a storm. And there is the ability to add should it fall down. To recover from a storm. There is a must have acceptable sum of gold to hold onto at all times. There is always substance at any given time. Provided they continue to believe what they hold is gold, their share count grows over time. It doesn't get smaller. They never miss a rise. But yes, they do take some market falls. If they are correct on their fundamental pick, the market will eventually see what they do. And their position shifts ever so slightly with the stock price fluctuations, they honestly don't have much to worry about. It's about the gold. And if it is gold it will make them lots of money. No regrets if it ends up being gold. One would hope if it wasn't gold, the shareholder would spot it to sell out before it turns to stone along with their money. Fundamentals matter here.
You're free to act on your advice and to trade your shares anyway you want to. I'd rather not change my mentality. I'd rather be a shareholder. I like having a buy and a hold at all times. I know a sale when I see it. I don't ever need to try to make a stock rise or fall as a shareholder. The up and down movements will happen regardless of what I or anyone posts. I don't move markets. I move with them. We all recognize sharp rises and falls. How we respond to them describes our day-trader vs shareholder mentality. I know the acceptable amount of risk I'm willing to add should it go on super-sale. And I also to let go to lower my risk back-down when it rises. I'll pass on any stock trading advice that doesn't include fundamentals or veers from my strategy. I like my golden shares. I like yours too. GL. :)
