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ALLIQUA, INC. Message Board

  • oniwlmh oniwlmh Aug 1, 2013 9:00 PM Flag

    Today's Trading

    Since I know some people are sensitive to questions, let me begin by saying that I'm long Alqa. I have ~20% of my portfolio invested in the company, and orders open to increase my position by ~30%. That being said, today's trading was extremely confusing. There were 1.3 million shares traded, with the stock price ending pretty much flat. That means there were 650k shares sold, and 650k shares bought. Now the selling of shares isn't much of a surprise. The stock has runup 25%(max of 33%) in the last 5 days, and I'm certain there are people taking profits. I'm sure there are also people who bought in around this level back in Feb/Mar and are finally happy to get out even. It's the 650k shares that were bought that confuses me. The stock has traded around the 0.6-0.7 level for about 3 months now, and there were plenty of shares to buy then. But now people are buying at a level 25% higher than that, and buying an extreme number of shares. Obviously the first thing to look at would be the recent news. First there was the PR on 23JUL that announced the commencement of a new study for their hydrogel patch containing lidocaine. Honestly, I don't know what the size of this market would be. What I do know is that this is the initiation of a study, and it's going to take a while for any revenue to start coming in from this product, if the trials are successful and they can get FDA approval. The stock also sold off after that for the next 6 days, which makes me think this news didn't change anyone's opinion. The next news was on July 30th. This seemed to move the SP significantly. But to me the PR didn't really say anything that changed the fundamentals of the company. The revenue growth was good, but the company caveated this with the statement "benefitted somewhat from accelerated customer orders". Then there were the 5 key objectives. Objective 1 is known. Objective 2 is also known; the company has been stating for a few months now that they plan on reinvigorating their sale

    Sentiment: Strong Buy

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