With the abrupt drop in volume I am beginning to believe that a SINGLE entity was responsible for all the selling.
Perhaps as many have suggested it was Geron selling shelved shares to raise money.
What else would explain this sudden stop in volume?
You are wrong. Big pharm is in the wings, IMO. Scarlett is "giddy" and may be getting "greedy". We know he is supposed to be a tough negotiator, hired to sell the company or find a strong partner. This will be resolved, at the latest by Valentine Day (probably before). Imetelstat, IMO, is a miracle-drug. Patience seems the best approach, as long as all of the good features of Imetelstat hold, as revealed at ASH by Mayo.
GERN - Gaps, cure for cancer, markets, rotation, and money managers
I am long the stock for the record and believe it will eventually work its way to the $9-$10 level which is my eventual exit and target. I do not mind sitting and waiting as I believe a partner up situation will occur next year when corps have their budgets/money goals/ planning in place. It’s too late in the year for the take out move here. Now I was a broker for over 18 years and have seen this game of sell on the good news and put the stock to sleep many times. For the record, there are gaps in the charts and gaps get filled just like building a skyscraper you cannot leave out bricks and mortar on the 2nd story. Bottom line gaps GET filled and will be filled. There is a gap between $4 and $4.30 that was created Nov 6-Nov 8th. Also, you have a 50 day moving average at $4.42 now so this is the logical spot to look to add or establish an initial position. Next, I don’t really like the markets now as our NYSE new 52 week high/low indicator is flashing SELL for the market (not GERN but the overall market). New lows are coming in above 40 issues per day now. All major corrections and crashes have come with over 40 fresh 52 week lows as a start. Next if in my years on Wall Street I would have always bet against the next cure for cancer I’d be rich but like stated I’m long GERN now. This may go with the phrase sell on the good news and buy on the bad. Yesterday was pretty good for an infant bio tech company. Lastly, as we get into the yearend selling and portfolio re adjustments money managers are going to sell anything they can to improve rate of return as this is how they are paid. A typical US long short hedge fund has fees of ½% per quarter and 20% of year end profits so there is incentive to pull the trigger and reload a GERN at the closing of the gap. Take NO risk as it affects the yearend manager bonus! Market rotation may prevent GERN from heading higher now as the “it needs to exhale and catch its breath” from a lower level - $4-$4.30. Less
Ben just gave the market another reason to rally this aft.... an extended modest retraction of QE gauged by economic steam. With the last week's take down in both the market and GERN's great news sell off what makes you think GERN couldn't still experience a Christmas rally?
Thank you for this analysis. I have learned that investing is like taking my paycheck to the casino every day. DH is headed for 3 week tune-up today. I will post anything new.
Sentiment: Strong Buy