Insmed Inc (INSM)

[saltmountain2000]

The down-trend of the past three days has definitely been disturbing. But even more so has been the increased volatility once the PPS passed the mid-$2 range.

The run-up past $3 was boosted by a bullish market. But the market as a whole has tumbled since then with oil shock, earnings concerns, and downtrends in European and Asian tech.

I'm still confident in INSM's fundamentals and mid-term potential, however, so I increased my position at $2.59 today. I think INSM will test the $3 level again by the end of the month, on the notion that the last conference call promised more news later this month. Years of research and development have led up to this point and the management team has been quiet, careful, and extremely competent up to this point in time.

After the recent spike and tumble, however, I am seriously re-considering my former commitment to holding out over a year for the long-term gains. With the increased volatility and shakedowns by the MMS, I'm thinking that a strategy of sequential short-term gains will let me sleep better; and give me some cash leeway to make some short-term swing trades if INSM is stalled out for a few days. I risk missing out on the big gaps, but my tolerance for 20 percent drops in value is limited. This is still a biotech after all...