OK, time for some reason on a smaller issue and a larger issue.
The smaller first, which is easy. Why is TPIV going up and then down and then up and then down?
Because that is what most stocks, markets, commodities, and indexes do over time, the trend may continue up, but they fluctuate down and then back up, etc..
The LARGER issue. I have been reading for months about, when will the merger happen, when will the merger happen, oh if only the merger would happen, we will all be rich when the merger happens, the heavens will open and angels will sing when the merger happens. The stock price will go to $25 or $50 as soon as the merger happens.
Is this the only stock merger that has ever happen?
What happens with most mergers?
No Great, Giant, Huge moves up.
Why? Because it's already priced in to the stock.
That is why you keep hearing, "buy on the rumor, sell on the news".
The pending merger is why TPIV went above $12, up 400% in no time.
Stock dilution normally tends to make a stock price go down.
We will triple the amount of shares, that will make it take off like a rocket??????
IF, IF, IF it does, what should you do?
You already know what I am going to say.
If TPIV shoots up to $25 or $50 as seems to be expected, be smart and PROTECT A PORTION OF YOUR PROFITS by employing staggered trailing stop losses.
WHY? If it shoots up, do you believe it will just continue to shoot up more and then more and then more and be $100+ per share?
In order for that to happen, you need catalysts.
What's the next catalyst after the merger?
When is the next FDA trial info coming out?
I'm sure there will be some institutional money coming in, in November and December JUST SO they can say in their annual report, "Look how smart we were, we owned TPIV and it went up a bunch".
But are they going to throw so much money in after it went from $3 to $25 or whatever that they drive the price up to crazy levels?
Possible, but I seriously doubt it.
History repeats, nature abhors a vacuum, excesses regress to the norm.
This is not a magic stock, TPIV is no different that the 100 other biotechs that merged.
I OWN a good chunk of TPIV, I hope it goes to $50 and then $100 in no time.
Do I expect it? NO.
If it does, am I going to capitalize on that and protect profits?
You betcha.
