Doug- Well said! I was just about to post the same thing! To me, as an experienced investor, the fundamental thing I look for is if a stock is consistently advancing to new levels that are above their established ceiling or 52 week high, just like what happened today on 10/5/20 but for different reasons.
Normally I don't invest in Penny Stocks, but this particular one got my attention due to my background in Big Pharma Clinical Trials, and in light of the fact that a merger might take place soon involving serious players in the Monoclonal Landscape who hold an exclusive Patent on Clone-3 Technology for treatment of AIDS/HIV. If it wasn't for this I would likely not invest in this company unless they were much further alone.
In light of this, I opened a limited position today, however in order for me to add to my position, at minimum I'm going to need to see consistent upward PPS movement far North of where it closed today, AND with news of the merger completion.
Only when that happens will I be able to justify increasing my position, but so far this nevertheless remains a speculative play where one can lose all their money in the blink of an eye.
What many amateur investors do is load up on stocks like this going on credit, etc, and throwing all their cash at it not knowing if the bottom is going to fall out at any minute and them being unable to unload their position when they hit the sell button! It can and does happen on speculative plays like this based on its present status on the Pink Sheets! Plainly put, there's no "bottom" in these class of stocks.
This play is "promising" but don't make the mistake of thinking it's not speculative and can blind side you in an instant! Also, if for any reason trading is stopped for any SEC Violations or deficiencies, there's the possibility of everyone losing all their money. I have seen this happen on more than one occasion and everyone went BUST overnight!
Also , I'm not one to engage in "averaging down" especially when a company has no earnings and has not proven itself worthy of serious capital investment. If a company stock is a "volume play only" like this one presently is, my advice is watch out! And "averaging up" only makes sense in general if a company has stable trading history and earnings.
This company is going to need merger completion, updated SEC filings, and news of forthcoming funding for me to seriously invest in it, and I would feel even more comfortable when they announce forth coming funding and planned initiation of their Phase IV Trials.
Until then my perspective is "use extreme caution" but plan to make your move at the right time.
I perceive that Shorts that are sitting on up to 68% of the OS, if they come out in full force tomorrow 10/6/20 are going to push the pps back down close to the range of .007 to .009 and this will be amplified by individuals locking in profits at market dumping millions of shares.
This is only an opinion and it may or may not happen.
Either way, I'm in a holding pattern until things improve for this company and I also plan on using my connections in Big Pharma to get in touch with the principals of this company to learn more about the design of their Phase IV trial, forthcoming funding sources, and when this might take place.
Best of success to everyone!
Happy trading!
