CryoPort Inc (CYRX)

[tigertrader]

David:

I'm not 100% positive what the odds are for a stock to hit break-even after a 96% drawdown, but I would imagine it's less than 1%. If you were to truly double-down, which would entail buying 5X the shares of stock you initially bought, you would probably stand a chance of hitting BE. Personally, I don't advocate that strategy - I only average up. The concept is a simple and important one to follow; however, it takes discipline. As a rule though, most investors, out of frustration, buy more of a $10 stock when it falls to $8 and even more when it falls to $5 and so on. IMO, it is generally not a good idea to buy a stock that is continually making new lows, because the market is discounting the stock for a reason that is not yet apparent to investors. And just because the stock is enjoying an uptick, doesn't guarantee that this is the bottom.

That being said, I wouldn't be in a hurry to get out. The IR/PR blitz seems to be growing and gaining exposure, and that alone is going to have a bullish impact on share price in the near term. However, the rally is nothing but hype induced at this point, and if the company fails to live up to the projections and the hype, the SP will fall once again. Personally, I would wait to see how CYRX reacts when it trades the $1.70 -$1.75 level. If it the market trades above that level, it will probably trade higher, and then $1.75 could become the support level for a new trading range(value area). This will allow you the luxury of seeing if the market will accept higher prices, and if those prices attract volume. It will also allow you to better assess if the company is actually going to produce as anticipated..