Here is what I learned over the last 48 hours about DRRX. Those who bet on this approval(myself included) were spot on. I lost a hair over 20% on this investment. I don't think any one would deny that the upside would have been massively greater than .40 cents a share. I don't write this to make myself feel better. I would play those odds again tomorrow if the opportunity existed. Pacira's gain today is evidence of that. I only wish I had been smart enough to connect the dots and buy pcrx yesterday AH or even this morning. You don't have to be a genius to make money in the stock market. I'm a flooring installer for goodness sakes! I'm holding this position as a long term deal. It's just a matter of time now. We know how big it will be!
I'm glad you can console yourself with with being right on a 20% drop and don't forget the 9% drop the day before when the news was out to a select few. You realize a huge number of buyers today are just people covering their short positions for big gains? Short seller are banned from DRRX right now so its a momentary reprieve. Once the covering stops, the facts are there is no news coming until at least mid-2015, shorts will move back in, money is running out, they will do another offering, and this one will drop below $1 again. Their "pipeline" consists of Eladur... given back after it failed its trial... Posidur with a CRL after a submission off a failed trial.... Remoxy a drug Pfizer would have to split with DRRX and PTIE and so they are creating their own drug in the same space and racing ahead of Remoxy with that. If it was a $2 stock on Tuesday with the possibility of approval it's a 1.25 stock after the shorts are done covering. Congrats on your "spot on" bet... continued success.
You're really hyping the negatives. This is just a temporary setback with Posidur. The FDA didn't say done deal, they said they needed more information. The trial wasn't a failure, it was incomplete. Remoxy is going forward. If Pfizer wasn't going to go through with it, it would already be dead. Don't forget the Impax deal bringing in some cash.
The shorts already covered when the stock hit the ridiculously undervalued $1.20 area. That's over and done. The stock recovered because people actually started reading the details on the news and realized the price drop was an extreme overreaction.
Of course, it's easier for me to hold long term because I'm in at 90 cents. While it was a bad week, the stock is already halfway back from its low and will continue its steady increase again. I say $1.65 is a great entry point, although sneaking in Thursday morning would've been much nicer. :)
Doy-leo, I think your missing the point I was trying to make. Simply that it was a fantastic risk-reward bet. Understand that I acknowledge that it was a bet and yes I lost the bet. However, what I lost was 20% and after this short covering that you have pointed out, it is now down to a 15% loss. (i bought under 2) But pay attention to the thing that might have happened but didn't. A 100-200% gain instantly. No it did'nt happen this time but If you have ever been on the winning end of a bet like that you would understand what I am talking about. for the record I think you did have some good points in your response. Best of luck.