Biotech Values

[Aiming4]

PARS rebound opportunity...

I completely agree with you in regards to wanting to be out of a company that has had a serious failure.

But in the case of PARS, the % differences are significant between what the stock was liquidated for by most longs on the day of the failure announcement ($1.10 to $1.15), then what it could have easily been bought and sold for over the past few days ($1.15 vs. $1.50+):
http://finance.yahoo.com/q/hp?s=PARS

The appreciation over the past few days was 30% or more, which is hellacious for a few days trading.

Believe me, at this point I want no part of PARS as an investment, but I'm wondering if these bounces after a huge drop are becoming more predictable due to daytraders.

In the case of PARS, the low value of the stock almost certainly helped attract the momentum players, look at the incredible volume the past 6 trading days in the above chart.

Just curious if anyone has adopted a strategy of successfully playing failure bounces... Aiming4.