Innovation Pharmaceuticals Inc (IPIX)

[Drano]

IMO, anyone who buys CTIX here will do VERY well financially in the not too distant future.

I suggest that people save some energy because I expect the heretofore absent bears will be in full force tonight, trying to panic people so that they can try to run the stock down tomorrow to take out more stops.

Once again:

DO NOT PUT STOPS IN A SMALL BIOTECH.

The market makers WILL take you out. I suspect that the reason the stock took that very very brief dive to 1.36 on Friday was that someone had put a stop there, and got taken out. Remember that market makers can SEE your stops on their order book and they WILL take you out if they can, when they expect the stock to go up.

When a friend told me that he had put a stop on a large-cap stock for his 1,000 shares, and that a market maker had swooped down 80 cents to take him out -- I scoffed (mentally). (This was a stock that typically had spreads of one cent between bid and ask.)

Then it happened to me. More than once -- I'm a slow learner.

If you feel that you just MUST have a stop, use a "trailing stop" which is linked to the price where the stock is trading (either by cents or by percentage) and which only your broker knows about -- NOT the market makers. You still may get taken out but at least you're not making it easy for them. Talk to your online broker's representative if you don't know how to use a trailing stop. Better yet, ride this out and don't let yourself get stopped out at all.