Sure, I agree that this was insurance. It was the way that insurance was bought that I have a problem. Look at two issues:
(1) With continued Seaside selling the stock price had deteriorated below $1. We all know that $1 is too low a price. We already had cash for 18 months. So we did not desperately need insurance, we could have waited. If we had waited for 6 months, say until March 2012, the stock price would have recovered and maybe we would have held above $1 for foreseeable future.
(2) Even if the company was really worried about continued funding and had to do (1) the insiders still had one more weapon in hand. They need to show faith in technology behind the stock and do some insider buying when the stock falls too low. However, we still have not seen any insider buying which would clearly say to the investment community that 50 cents is too low a price and the management believes that the stock is worth much more so they are buying with their own money.
I am still hopeful that we will see some insider buying soon. Otherwise we will see disastrously low stock price. 20 cents is not out of question.
Note what is going on in the market now. The winners are being selected. Most of my holdings, except NNVC, are now well off the lows in December. They have been bought. The standard way of selecting winners in this market is this: (1) First buy all stocks, (2) Then check which ones were able to hold higher prices. (3) All those who did not hold higher prices are losers. Sell all losers.
So if we do not see any price appreciation for NNVC in a strong up market of first quarter, be sure we will see much lower prices. What is the problem with 20 cents price? The problem is you are then defined a very big loser and market loses faith in you. Even if you show great technical progress, market says "Oh these guys are losers, maybe they are lying". Let us wait for more technical news. Maybe we should not buy this until they clear phase 3 and are ready to file NDA. In general no money is made until you sell your drugs, until then it is just faith from the market that you will do what you said you will do. If that faith is lost big problems occur.
Seeker
