The basic lesson is, you should study this sector, with biotechs because I learned a long time ago, not to buy on a run. You do your due diligence and you buy when everyone hates it. You need to know your due diligence is good. Most people have crappy due diligence. They rely on articles on Seeing Alpha to pick their stocks. They are lucky if they pick good stock pickers, but most don't.
But the number one lesson I learned, it's like investment 101, you don't chase a stock up. There are only certain kinds of events and periods when that might be a reasonable thing to do, though still very risky. That is when the valuation is still far, far below what it would be upon success, and you are early to the announcement of success when everyone has discounted an opportunity for failure. Note, I said, early to the ANNOUNCEMENT, meaning after the announcement, not on rumors of the news. No one knew what the news would be or how it would proceed. There were rumors that the May 10th event. would necessarily involve publication. Those were rumors. Yes, it may rise a lot before that. But if the event occurred, you'd have had plenty more opportunities to buy. But you'd not be buying rumors, LATE.
The reality, contrary to your post is, weeks before the rumors started, which were not long before the event, the stock was in the .70 range. And yes, when day traders all pile out based on false information, stocks like this are volatile and it dropped hard... but not for long. The same day it was up basically back to the range of FLAT YTD, where it had been before the rumors started, and it has generally stayed in that range. The stock also went down to .01, one day until the market makers said that didn't happen, even though the chart and trades showed that it did.
The OTC is not a great marketplace to be on. Everyone knows that too. But you trade it, rather than investing, dollar cost averaging or buying low, at your own risk, if you don't know what you're doing.
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