Suggested DEPO strategy.....
DEPO is a 'more than likely' drug approval candidate with a PDUFA date of January 30th, which falls on a Sunday.
The last 2 'more than likely' drug approvals, AVNR and POZN, encountered a very strange trading pattern the business day before approval. Basically, it seems word of approval leaked, and a bear raid was flawlessly executed midway/late during the previous trading day before the PDAFU date.
Both AVNR and POZN saw their stock prices reduced by about 50% within a 5 minute period - perfectly executed/orchastrated. Both then slowly rebounded to almost reach the price it was at before the bear raid.
Now, my suggestion to those here, is the following:
- If you do not have funds on the side, sell all or part of your current DEPO before January 30th, which is the business day before the PDAFU date.
- Watch DEPO closely. My guess is there had to be an approval leak that gave the go ahead for the execution of the POZN/AVNR raids. Without approval leak, i do not believe it happens. It is just my opinion, as there may not have been a leak, and the raids could have been setup to execute regardless, banking that POZN/AVNR were going to be approved.
- As stated above, either watch DEPO very, very closely that day, or if you cannot, put a large buy in at 35% - 40% discount of the opening price.
- Sell all or some on the rebound up. Hold zero or little for the actual decision.
IMO, this is extremely low risk, and extremely high reward. If the raid does not happen, well, you do not make anything, but you do not lose anything. And if the raid does not happen, IMO, it very well may be a bad sign - that approval is not happening.
AVNR and POZN had raids, ALXA did not. This is a very strong reason why i think there was a leak and not just executing a raid on a strong approval guess.
This is again, just my opinion on a very solid strategy.
AI
