Anavex Life Sciences Corp (AVXL)

[Gator328]

All fair points. It's hard to say how this will play out. I would feel better if it would consolidate a bit. Maybe not at $4 but any sort of pull back and holding a price level significantly higher than the 50 or 200 MA would be fine by me.

At the end of the day this is still a binary outcome. Either the drug works and we all make money or it doesn't and we lose everything. The BPs can afford a drug failure because the $10B or so it shaves off the market cap is a temporary setback, but they have other revenue-generating drugs to keep the business alive. Anavex doesn't have that luxury. Shorts know this and that is why they will pile on at the first point of selling pressure.

I do agree with you that leaks are common and strange price movements like this often precede actual news releases.