If you put up a 3 year chart it looks like a big cup and handle, but the handle is going lower than most.
Hope this selling volume lightens up. You are right about 6.25 . In the past these big drops go down below 50 day moving average, but recovered.
...or maybe some 'want to to be buyers', who buy on margin, will not be able to acquire the stock and the lack of buying will cause the stock to drop to support levels, even sooner!!!!
Sort of interesting that it is becoming more and more expensive to short AMPE and at the same time that action is forcing some to sell and move the price down in the short term. The next short interest numbers will be interesting.
A very close friend of mine works at Fidelity. They are asking shareholders of AMPE to increase the margin in their accounts to 75% for that stock, thus, this is forcing many people on margin to sell. This started a few days ago, so the end is either today or tomorrow, at which point we will see all the people that were able to hang on to their shares and the stock will start to rise!
Sentiment: Strong Buy
today AMPE is at lowest levels since September...support now probably will be the 200sma, 6.25ish, which is also the September low open as well as the lower channel trend line from a February low point...if that fails to hold, the weekly 50sma is about 6.00...needs to close above 7.35 to be considered bullish again
I know of a big player/trader that confirms what Karma states. His huge position along with 3 friends encompass quite a bit of the float. To add to what Karma states, in order for them to further build out a larger position, they buy options that they exercise which will not move the stock price. They also play the other side and sell options but have enough power to keep the stock where they want it at expiration. Its been quite interesting. This is a guy that bought MDVN at $2 huge and rode it up, down and then back up again apparently taking multiple 7 figures out of it. He believes AMPE has 3 in the hopper that will make it more valueable than MDVN. For what its worth
There are ways to protect yourself to the downside. Speak with knowledgeable broker. There are many option strategies to indemnify yourself. You can sell puts and calls to generate income or buy long term puts as a insurance policy.
I think it will hit $595 a share tomorrow, if not, maybe $5.95. be patient. $3.00 might be a good place to jump in!
Sentiment: Strong Buy
Karma, Thanks for a very lucid post on how people like Agnew and others who are in love with the stock get burned because they keep buying at ever declining values thinking the stock is an even better deal each day it goes lower and averaging down to zero thinking all the while it is going to go up tomorrow, which never comes. The Fund manager wins the shorts wins and the lovers get jilted and screwed because they never accept the possibility that it may go to unrealistically low levels and not go up as they believe it should
Don't need to short tout a stock that the volume indicates nobody wants, thus the current pps and continuing decline. the shorts still need somebody to sell to and apparently there are not enough buyers to provide any price support. the only other alternative to finding a price that investors are willing to buy it at, is to give it away. I don't think it will get that bad but short term for those in love with this stock there are going to be some better buying opportunities so go ahead and buy, bet the farm, the house and everything you own you can be as myopic as you choose. GL2U
I know the science... and I understand the opportunity. That's precisely why I have so much of this stock. But I have SO much that it makes being patient very hard. My average cost is about $1 (again - old time DMI shareholder). Very happy, but get these weird periods of frustration and impatience (ergo my horrible posts of the past week).
You're quite welcome...When he originally explained his objective and strategy, I was dumbfounded,It defied logic and was counter intuitive to my beliefs. I repeatedly asked if it would be more beneficial if the price rose. He reiterated, not yet, he felt he had not acquired enough shares to impact his holdings and if he could acquire them as inexpensive as possible it would be more beneficial. He said the shorts will eventually concede, but in the present time he'll get 30% interest on his shares. He further elaborated that his strategy is common and valid with small Biotech start ups. They are very vulnerable without a large institutional presence and limited revenues. WE CAN COMBAT THIS STRATEGY BY REFRAINING FROM SELLING BASED ON EMOTIONAL DECISIONS. LEARN THE SCIENCE AND UNDERSTAND THE OPPORTUNITY !! I want my cake and eat it too !!
karma... great post! Thanks for the info. I hope its true... and it does ring true and makes sense. Its the kind of thing that us DMI shareholders hang on to after so many, many years of being long and strong. I am trying really hard not to #$%$ defeat out of the jaws of victory" by getting too impatient. This kind of a post really helps... thank you!
Let me explain ! Last year I was very fortunate having the opportunity to attend my first Ampio shareholders meeting. It was most enlightening, it provided me with a profound incite and some knowledge on how small investors are manipulated and duped into believing contrary to reality "the very Paradox of Ampio".
At the conclusion of last years meeting, I was privileged to engage in a conversation with a rather distinguished Private Equity fund manager. I introduced myself and we made small talk ,the conversation pertaining to Ampio shortly ensued. He asked my opinion of Ampio ? I was embarrassed providing him an unsophisticated and less than compelling reason. I said I was a DMI holder and pleased with the progress, happy to have a liquid stock.! He asked me my opinion on the value ? my dumb reply " I don't know".
I politely asked him his opinion regarding the value. He said very decisively with out hesitation north of $50 in due time with cooperation and milestones reached with the FDA. I was shocked, I asked if he would please explain how he derived his valuation. He described in detail, how his team,consisting of MD'S,PHD's and Attorneys conducted a comprehensive analysis of all the science and patents. They visited the labs,looked under the microscopes,went as far as interviewing the secretaries attempting to get a feel for the culture and intangibles.
Here lies the dilemma ! He would like to take a large position in Ampio,however the float isn't large enough to accommodate him. When he attempts to buy a large block of shares the price rises to quickly. The irony is in order to facilitate his desires,he loans his shares to the shorts in return for 30% interest. The shorts put pressure on our stock artificially deflating it so he can acquire more at lower price. He has his cakes and eats
Of course you are negative! Once Ampio starts the run, get out of the train's way!!!!!! GO AMPE!!!!
Sentiment: Strong Buy