Arch Therapeutics Inc (ARTH)

[NNW]

Well, firstly, you have invested in the crazy realm of bio. There is no normal. Before results are released, people's imaginations run wild. Reality hardly ever lives up to the imaginations of people. By their very nature, people's imaginations are more grandiose than reality.

Secondly, if you think this drop is worrisome, you ought to see what happens when a company fails their trials. You can see huge gaps downward. 50% down. 90% down at the open. For every 1000 you invest, you get back 100. Ouch.

Thirdly, yes, it is common with investing to see selling on the news. This has less to do with the data of the news and more to do with timing. Before the data is released, there is a heightened sense of urgency to be invested. If the news is coming out in four weeks, you feel compelled to be invested today. But once the news is released, what is the next catalyst to drive the share price upwards? So some investors decide to sell on the news release and look for another investment with a news release that is imminent.

Fourthly, there is a word that is becoming increasingly uncommon. The word is called patience. Some people want things now. Today if possible. The end of the year is too long a time frame for these individuals. If you think about it, the end of the year is about 100 days from now. That doesn't seem too long away from my perspective.

Bottom line with ARTH in my opinion, great data. Investors wanted CE app approval closer to today, they are disappointed they are going to have to wait 100 days (give or take). The fundamental reason for being invested now has factual data to support the position. If the fundamental reason for being invested is still valid, then don't fixate on intraday or weekly share price swings. It will just give you an ulcer.