This is for people who invested here and are either worried or angered by the investment being such a long one, they not being aware that is what they signed up for.
Biotechs, Junior Mining Co's and Oil and Gas Exploration companies have four things in common, the investment will take 5 years maybe more to pay off, your shares will be diluted and your share price will go down popping up only when a significant milestone has been met and they all cost a lot of money to reach their final objectives..
That is why they pay off so well when they hit. Because the overwhelming majority fail. Untold 10's of billions have been invested and lost in these types of ventures as they are extremely risky. But when they pay off they pay off big.
As well when you do sell some of your stock for your initial investment back on the first surge you pay a far far far lower amount to the IRS.
People wonder why is the company not doing more to prop up the share price. Why should they? To make you feel good inside or more often than not because you are a stock trader not investor and wish for movement to play the stock either down or up. That is an investment that is a trade the two are entirely different things.
Do you want a company you are invested in that you know burns a lot of cash because it takes a lot of cash to accomplish their goal, to spend 300-500 thousand dollars a quarter to keep the share price propped up. Why? What does it matter what the share price is now, next week or next month, it doesn't. It is not that type of investment its a long term risky investment and they need the cash in this case more than ever to finally reach the promised land.
The finish line is staring you in the face, be happy, happy, happy.
This is doing what the overwhelming majority of investments in this space fail at its gonna end up coming through, just need to wait on the government to give it its final seal of approval. It is also in the middle of trials etc in the UK and that takes cash so spending money to prop up the share price is a bad business decision.
When the BARDA money came through that was an excellent sign and should make an investor confident, when the FDA expanded use for humanitarian cases that should have been an even better sign for the investor. Is it going to be more of a wait, yes, does it matter no. It is simply what is expected unfortunately because the approval process is full of hurdles that must be crossed and endless bureaucrats that need a reason to keep their jobs.
When the FDA approval sales will not only happen in the US but they will increase worldwide IMO. Why you ask? Because that is the golden seal of approval and the world knows it, other countries do not have the money nor the inclination to go through their governments spending money to have such a process which is so thorough. When something is US approved it is a given that it is the shit and all follow suit, happens everyday.
Frustrating yes, it takes 10 years and 20-30 million just to get a mile long stretch of road built in the US anymore with all the government studies red tape etc. And it sucks.
If the wait was truly to long for some I would suggest never investing in one of these types of investments again. Myself I do not invest until the final submission to the FDA and it looks like everything is going to be ok. It still is a long wait but, I do not care as I go into it knowing this and the payoff is so good.
A few other things when the ship does come in and dock and the share price does what it does I suggest to all to sell 30-40 percent of their holding at a level that will get them even and ride the rest until the market comes to a conclusion as to what it dictates what the share price will be. Sell small chunks as it rises reap some of your rewards and when it gets to what the market dictates it feels the share price should be make your final decision.
It is going to be an emotional high when it hits and in the 1 to 2 weeks after approval comes in. First you will have those that jump in on approval, then those who jump in on the small pullback as some sellers exit, once those shares are gobbled up by those that come in at that point the stock will need to break certain levels for the next groups of investors to jump in.
Many will not jump in until the 5 year high is broken which is just shy of $3 then the next group will come in when it breaks certain price points my opinion this will be $5. At every level a different type of player shall enter the game its like going from pond to pond each getting bigger with bigger fish as the ponds get larger. Then real whales come in not your message board whales true whales that trade in millions on a daily basis.
What will happen with Avita what will the share price be I don't know. It should be above two other companies that touted they had the same solution Avita did without spending the time and money actually going about completing the goal, they on the other hand burned money to promote the stock so they could enrich themselves. When people do sell some shares out of their investment to recoup their investment and then take profits use the FIFO rule.
First in first out, that means sell from the first shares you purchased so the tax liabilities are less. If you do not understand what I am speaking of go to Investorpedia and search for the term. If you are unaware of how to do that I suggest you call your account broker TD ETrade etc and ask them how or where to look on their website to do this or search on youtube and there may be a video of someone showing how it is done. It means a big deal here in the US when dealing with the tax man.
And for those wanting to buy to average down of get more shares now that we are 2-5 months away from approval do so by sitting on the bid do not buy at the ask. Do not enrich or help short and traders. Buying stock is a negotiation you bid what you wish to pay they ask what they want to sell it for. Put your bid in and let it sit someone will sell it to you I do it every week. You are not going to hurt the share price by doing this and you will more than likely help it a strong bid stack on level two of a stock is a strong stock, shorts do not like this and they usually leave it alone. When you buy at the ask and there is no support, yes the price goes up but they tear it back down. Because until the approval comes in its not going anywhere its going to play bouncy ball in this channel but it is definitely not dropping to make it worth while to trade this close that is a certainty, you can take that to the bank.
I just wanted to share a bit with those who may not know certain things, go outside today breathe the fresh air because you earned it and got extremely lucky. As I mentioned most investments in this space never ever ever payoff. They run out of money or what they were trying to get done didn't work as they thought.
Go kiss your wife, husband or partner give them a pat on the backside and ask them out on a date. Go out for a few cocktails a wonderful dinner and come home and let nature take its course. You should be happy at this point you have a loving partner and an incredibly risky investment is going to pay off, you did good kid.
I will see you guys again in about six weeks, I always read the boards here and other places even the Australian ones. But, I do not post, I do not wish to add to the noise, have a great day and month you earned it. patience is a virtue.
I was once told....
Its easy to become rich, but hard to stay rich.
Its much harder to become wealthy, but much easier to stay wealthy.
New money is fast money old is patient money it is slow but steady money, hardest thing is patience build on that,
Peace out.
