Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Because people don't know what they're doing and they panicked...
If the 10K actually had NEW bad news, it would be obvious why people would run for the hills. But why panic on information that was already known and expected...?
Here's what we already knew months ago...
1) Their burn rate is $2M+ per month...
2) They're going to run out of cash by June...
3) They have $7M in debt due in June...
4) There would not be any revenues for 4Q due to the product first being available in the last couple weeks of 3Q and the fact that the treatment takes 3 months, so they don't get paid for at least that long (do the math!)
And here's what the 10K said...
1) Their burn rate is $2M+ per month
2) They're going to run out of cash by June
3) They have $7M in debt due in June
4) They had $0 revenue
Now here's a question...Who can find a 10K for a company with zero revenue that doesn't have boiler plate bankruptcy language?
Let's see what Pernock has to say on the cc (it better be good).
How would you expect revenue? 4Q runs from Oct 1 - Dec 31 -- that's a 3 month period. Laviv has only been available since mid September. The treatment takes 3 months and they are not paid until the treatment is completed. So when would they have time to collect revenue if the treatments are just ending at the end of 4Q (and that's assuming people received treatments from day 1). It is not new knowledge that there would be no revenue from 4Q.
and apparently the day got worst...
and that's what a panic will do. not really sure what led to the mass exodus given there was NOTHING NEW in the 10k LoL. the burn rate was not new and everyone knew they had to pull together the financing by june. see posts from 2 months ago for those details.
what a disaster on management's part though not to address all of these things before they released the 10k. this is going to be one interesting call tomorrow.
the language was boiler plate for a company with no revenues, so i'm not sure what everyone is freaking out about. if you read any 10k for a company with no revenues, they all say the same about bankruptcy -- literally the same words/phrases.
there weren't any bright spots in the 10k, but did people expect there to be? what did people expect, that thousands of people purchased and paid for the product in the first 3 months?
the financing is troublesome, but that's the way it goes in these types of companies. they'll figure out the financing by June, but the question will be the terms. i don't want to experience any more dilution either, but i'd rather have a chance for my investment to become profitable.
i think we should email him and tell him to buy some lotto tix today. $640 million should finance us for awhile if he wins :)
yeah, not going anywhere for the foreseeable future. but would sure be nice to gain some traction and move slowly upwards.
yeah, i would have expected additional volume with the cc scheduled for next week too...
I'll work on updating the ibox over the next couple weeks.
wow. pretty large volume less than 1/2 hour into trading -- 141,000 shares traded. maybe dew's "fund" he oversees is buying up all these shares :)
decent volume so far. gapped up a little at the open. not expecting it to break .50 for at least a few days as it's reaching overbough in the short term but it would seem there continue to be large hits on the ask and hoping the uptrend continues gradually thru the conference call.
quiet today. no posts and only 4200 shares traded. didn't test .40 early but ask is thin and still could.
was hoping for at least a close of .35 and we got .37 :)
based upon the chart, i would say tomorrow is the day we test .40. hoping it clears .38 early and then tests.
yeah, you're probably right.
loving the volume these days. close at .45 is solid. hopefully we continue to trade between .45 and .50 now for the next few days.
did somebody do a takeback? LOL!
wth...my scottrade account showed 1,020,000 shares traded a few minutes ago and now dropped down to 919,000...what happened to 100,000 shares traded?
FCSC up 20% and climbing!
done! .50!
.45/.46 looks like we may break thru .45
USPR on way to completing cup pattern. looking bullish!
well, seems to be making another move...hit .36 with b/a of .35/.37. seeing it above .38 would be grand :)
USPR breaking out
nice block thru at .43 to knock spread up to .43/.439
nice support on the bid too with 46,100 shares offered
i thought it was waiting til feb 28th which is tomorrow...??
from a technical standpoint, it's holding up just fine. and given i've waited this long, i'm not going to sell just yet. chart would look better with a close of .35 or higher today.
lot of shares on the ask at .43 to get thru over the last couple of days.
what indicators are you looking at? so far it's holding the 50MA and the RSI is only at 57 -- it hasn't even crossed 70...
i certainly wouldn't complain. so far no high volume.
FCSC breakin above the 50
well, it's holding .33 like we thought...
and it opened low. you're seeing the pullback on low volume now. hopefully a couple buyers step in.
I would assume it pulls back under today's close (.36) by a cent or two in the morning after testing .38 and then closes above today's close. If a lot of people take notice of it tonight, maybe it gaps up and then only pulls back to today's close (.36). Or maybe it fizzles. Can't say for certain. Chart looks good though.
nice! finally took off. about time. i knew it would go eventually.
you're starting to sound like dew...who said such a thing?
your rationale that the increase in volume and the stock price going up due to forthcoming dilution doesn't even make sense. the stock price would go down if that were the case.
all we know is they need financing by june. we have no idea how it's going to happen. the higher the share price though the more favorable the financing terms, so i'm all for a higher share price.
a lot of large orders have been going thru at the ask over the past week. that we know. what else does it mean? who knows...
correct. that's what i'm saying. i do it all the time.
and i'm not insulting you, but your belief that technical indicators "mean nothing" is ridiculous.
over the long-term, yes, you are correct that news will be the driving force behind any large movements.
however, there are many technical, momentum, and swing traders that play stocks just like this that pay attention to technical indicators. while these traders may not stick around for the long-term, they do contribute to reversing trends and establishing new highs and support levels. the increase in volume and percentage gains they provide also contribute more attention to the stock, which may bring the company to the attention of long-term investors as well.
the fact that fcsc crossed the 50-day moving average for the first time since fda approval is significant. the stock has followed the 50MA down for months now, resetting and hitting new lows each time it tested the barrier. all you have to do is look at the chart. oh, and volume is above average and i guarantee it's not because of the conference call scheduled over a month from now..
a combination of factors is likely contributing to the reversal. investors seem confident the stock reached a bottom near where it did at the end of 2010 (prior to fda approval). the same investors are likely confident of the prospects of the company over the long-term. i guarantee you also have swing and momentum traders buying with the trend reversal. depending on how high it goes, this may also force shorts to cover who will further drive the stock upwards.
FCSC starting breakout
FCSC starting breakout
Very much looking forward to this next week.
We closed significantly above the 50-day moving average for the first time since FDA approval. This would seem to finally mark the reversal of the downtrend we have experienced for the past several months.
As I mentioned late last week, it would also seem that decent blocks of shares have been going thru at the ask about an hour into the trading day. This would appear to represent accumulation. Hopefully this will continue.
for the last few days, seems like someone is buying quite a few shares at the ask popping us briefly and then we settle down to just slightly above even. has anyone else noticed the accumulation?
FCSC breaking above it's 50MA
FCSC breaking above it's 50MA