Replies to post #1033 on *Shankapotamus'''' Playpen*

[shankapotamus]

The stock market is irrational. If I had to guess, I would say it was a combination of things, most likely attributed to margin calls, stop loss triggers, hedge funds, high-speed computerized trading and MM games. This is a great opportunity to buy in at rock bottom prices. The CEO and VP of BMTI bought shares in the open market last week, which is very reassuring to say the least, imo.

Sorry fredman, but I have to disagree with you on a few things. Seeing that the stock didn't bounce right back, all of those conspiracy theories can be laid to waste with a little DD. I did a 5 mins worth of digging and found this article: www.fool.com/investing/high-growth/2011/05/13/fda-advisory-panel-positive-shares-punished.aspx#commentsBoxAnchor

Here is an excerpt you might want to take note of:

The headline -- BioMimetic Therapeutics' (Nasdaq: BMTI ) Augment Bone Graft Receives Positive Recommendation from FDA Advisory Committee -- sounds good, but the details tell a different story.

While technically the FDA panel vote came up positive, it was close -- just 10-8 in favor -- for both the efficacy of Augment and whether it had a favorable benefit-to-risk profile. Augment is a synthetic material that stimulates broken bones to grow back together.

But the advisory panel is just that, advisory, and the agency has the final say. Unfortunately for BioMimetic, the FDA didn't seem all that supportive of the clinical data testing Augment. The agency didn't seem convinced that Augment was any better than autologous grafts where bone from another part of the patient's body is used.

On Tuesday, after the FDA's briefing documents for the panel were released, BioMimetics stock lost 35% of its value. It recovered a little but has fallen again today after yesterday's vote.

Those insider buys are very tiny. Not the kind of insider buying you see right before things get better for a company. The CEO only added 13,000 shares to his now 898,912 share load. My calculator says that's barely a 1.5% increase in his holdings. The VP only bought $15K worth of shares himself. Again, nothing that sets off alarms on my scanner.

I trade FDA plays myself and don't see any reason to buy this stock other than to play the technicals bounce. With that being said, I do wish you the best of luck with it. Hopefully you bought the bottom and didn't hold all the way down from the top!

GLTY,
shank