stock brokers create false messages which cause people to buy or sell based upon some impending good or bad news. This is the basis for bashing and pumping. But with each buy or sell, these stock manipulators make a commission. Anywhere from $7 to $20 dollars. Lets say an average of $12 per transaction. If they can create a "crisis of a day" where 10,000 individual trades of X number of shared change hands . . . do the math. It equals $120,000. So it ends up being a food fight over scraps.
Longs need to understand the business model to decide whether to buy or sell. The business model of a vaccine company is a minimum of 3 years to market from a Phase IIa (finding the dose that produces neutralizing antibody in humans) to a clinical trial that gets results. Accordingly:
1. The DD centers around how good the science is for a company to succeed.
2. The science can be verified by Medline or ClinicalTrials searches.
3. The science is also validated by the cherry picking of the big biopharmas in performing collaborations.
4. Any negative feedback from the FDA or EMEA either indicates a slow down, re-evaluation and/or changing the clinical trial (Phase IIa vaccine studies usually make it through to Phase IIb, or Phase III). Such feedback has to be announced on the day it is received by the company that receives such information.
5. Stock brokers have no inside information that abrogates the DD and information sources from above (unless they want to risk jail for insider trading).
So why not hold (minimally) for these milestones to occur? If you need your money to mature faster than 3 years, do not invest in biopharma, medical devices or other types of investments. These are highly regulated commodities that take years to get to market.