Computertranslated from Herman Sleegers( out of Dutch)
was emailed to me before today's opening.
A lot of movement and volatility in the price formation of Lightwave Logic right now. After an impcredible boom to an intra-day top of 17 usd, it is now falling back towards 8.35 usd. All this happened on the basis of the excellent prospects that CEO Dr Michael Lebby presented, although without any concrete achievements yet. This uncertainty in terms of timing is obviously the cause of the current volatility. Loose hands disappeared from the stock, Market Makers go looking for shares via shorting and scaring shareholders. Larger investors perhaps funds want to get in but preferably at lower prices. So it is hard to say where the price is going at the moment, new buying power can push the price higher again, on the other hand a movement towards first support 7.50usd or even lower cannot be excluded. How do you as an investor deal with such high volatility,
I give some possibilities.
-Strategy 1: the one that is very clearly my personal preference. Focus on the fundamentals and let the stress of volatility pass you by. Recently I sent a list of events that can be expected and can positively influence the price. As mentioned earlier, I estimate the current value of the company based on patents and expectations to be between 5usd and 10usd, mainly based on gut feeling. However, the announcement of a good deal could at least double the price in no time or even more given the lack of free float and the high current short position (over 1mio shares). Dr Lebby made more than clear that a deal will be done , when it will be done is unclear .This could be tomorrow, within 6 months or within a year. It is precisely the lack of that exact timing that is causing the current turbulence. Always keep in mind that Lightwave Logic has the ideal solution in a market that could reach 45 billion usd by 2025. Not to mention submarkets like Lidar, sensing, and many others.
-Strategy 2: range trading with the value 5usd to 10 usd in mind. If the price rises above the upper price target of 10 usd you can reduce the price a bit. If it goes to the bottom, namely 5 usd, you can build up more aggressively. This strategy is obviously more labor intensive and in my opinion not necessarily more efficient than strategy 1, on the contrary. The big risk is that you miss a deal and see most of the rise pass you by.
-Strategy 3: for me the least acceptable but applicable in extreme cases. If the high volatility is really bothering you and giving you sleepless nights, take your probably very nice profit and sell your shares. Be satisfied with what you have but then don't be disappointed with what you risk missing.
Kind regards
Herman
