Anyone investing in early stage biotechs should realize that these stocks are highly volatile (in fact, KBLB is considerably LESS volatile than most, IMHO).
These stocks almost always overshoot with a price spike after good news and then retrace usually around 25 to 50% of the increase (sometimes all of the increase if, after time for reflection, the market decides the news wasn't all it appeared to be.)
It is, therefore, inadvisable to buy too soon after the news while the price is still increasing - the chance of overpaying is, in most such cases, greater than the chance of never being able to buy at a lower price.
I never heard of KBLB until after the announcement of the KBLB/SIAL deal (for SGMO's zinc fingers) and then learned of it from the announcement on my news (because I am a long term SGMO holder). The price was already up above 13. I waited until the price appeared to have established a good bottom at about 10 and bought in then. Because of that the price has never gone more than about 10% below my entry price (except VERY briefly). IMHO anyone establishing a long term position in an early stage biotech should be prepared for a priced drop of at least 30% (or even 50%) below their entry position. (At that point you weigh all the current information and decide whether to bail out (if the reasons for the price drop appear solid and future prospects poor), buy more (considering it a buying opportunity) if the price drop appears unwarranted and the future prospects still look good, or just hold tight (if you think the current price is justified but the future prospects look good enough to justify holding).
So the only real "bag holders" IMHO are those who bought during the run up (or very early in the pull back, before a bottom had been established) to 26. But that's the risk you run when you buy during a price run up on such a stock.
It's part of what you inevitably have to deal with when investing in early stage biotechs.
Buying during a price run up after news (or just before eagerly anticipated news) is always highly risky. The best time to buy is when a good bottom has been established. You make the most money by buying when the fewest other people want to buy.
As for revenues: getting some cash coming in would do wonders for the SP. But so would getting good results from the platform worm: i.e.: a useful product: "pure" (no major WSP) spider silk or some other product (the artificial fiber, etc). At this stage revenues are not necessary for SH increases. Good progress toward that goal is good enough. The reason, IMHO, that we didn't see an increase after the platform worm announcement is simply that the PW is a tool and the market is unimpressed by tools: almost every biotech has a tool that it thinks will create wonderful products. Most never do. So what the market is apparently waiting on is to see something useful created with that tool.
