It's a typical story. A pe-market order gets put in for a super low price. This worries the small guys because they look at the amount of money they are "losing". The small guys get scared out of their shares and simultaneously a big institution comes in and snatches up the shares at a fantastic price.
Eventually, the "investors" who plan to hold are going to hold their shares and we'll reach a support level.
The big institutions open the day buying 10,000 shares on some "good" article they get one of their buddies from seeking alpha to write for them. The stock price SHOOTS up 10% in one day and other investors read the seeking alpha article and think...Man this is a low priced stock. Let me get in now before it's too late.
Now the big institutions start slowly dumping shares for a 10% profit to the small guys who read the seeking alpha article. It's just irritating that the big money institutions can get away with manipulating the market. I can't tell you how many stocks I have seen with these HUGE swings in a week period. And for some reason they are all perfectly timed with these finance writers? Hmm....are they in on it too? I think so.
So what do I do. Ride on the coat tails of these guys. Find these companies that are solid and have good growth opportunities but then manage to miss expectations for the current quarter. Wait for the plunge and then purchase shares. When the "seeking alpha" article comes out. Dump your shares.
I got 2K shares yesterday at $6.10 average price. I am just waiting for the article to come out.
it will be interesting to get more clarification on the denial. I think that the reasons will matter - if there are some issues with safety with the EU-trial results - then we will also have additional questions from FDA. If the problems are mainly caused by other clinical matters in the data - then the issues could be managed. I think the EU bodies do not issue CRLs like the FDA, but I am not sure.