Here's a thought for discussion.
Given that LWLG has risen almost 10-fold over the past year, it fits exactly the profile of a stock that could see "tax gain selling" in the first week of January.
By "tax gain selling" I mean that investors sitting on 10x/windfall profits are not going to sell in the last couple weeks of the year. However, it does make a lot of sense to book some of those gains as soon as one can do so in a tax-friendly way! They will hold on until the new year and then sell (part of their position) to capture that windfall while not having to pay tax on it until April of 2023. Even if you personally won't be selling some (nor will I), it makes sense to acknowledge this will be driving a lot of LWLG holders to trim their positions.
This causes a temporary dip right after the new year, but it has nothing at all to do with the intrinsic value of the stock. I expect a dip next week.
I am working to have some cash available in my accounts so that I can add common in my IRAs and add common and/or in-the-money June calls in my non-IRA account. I think the first week of January could be a great buy opportunity - I will set my initial orders in the 12s but will go up to get some fills higher if the 12s don't fill. If we get some down days I'll buy some calls - love buying calls on down days.
I am NOT advocating selling LWLG and trying to rebuy it - I am simply observing that weakness in LWLG the first couple days of the new year makes sense and is to be expected, and this provides an opportunity to those able to recognize it. LWLG is my largest position (by far), but despite that I am looking to add, no sell.
Anyone see the "tax gain selling" effect like I do?
If I could afford to buy all of them, I would not need to buy any of them and I sure wouldn't be spending time on the message boards!
