Hello board. Been doing well in tech,but am looking to diversify a bit. Going to buy some March calls. This has been on my watch list for 9 months and has been outstanding. Low p/s, good growth, good cash and liquidity, low implied volatility, strong product pipeline that is diversified. Anything I should know before pulling the trigger?
This upcoming report will be interesting. They've clearly signaled their R&D is going to increase but the market seems to overreact to any perceived weakness. So beware if the headline reads "anik misses". That's about as far as most read and they start selling, but it makes for a good opportunity to buy some on the cheap, Keep some powder dry.
Low volatility??? You don't do due diligence, do you? Check out the 15-year stock price history on this roller coaster. It's been as low as less than a dollar, AFTER being so much higher than that number that it will wiggle your eyebrows.
The reason for the trading whipsaws is, and always has been, the low float. This is a very SMALL company. Even though it has high-quality products that have traction internationally, it's still a very SMALL company with a low float. It's therefore very easily manipulable -- and right now, according to at least some websites, it's been "noticed" by some hedge funds. There may be whiffs of an exciting future in the air -- a lot depends on the outcomes of clinical trials that are currently ongoing and how the FDA chooses to interpret things -- and there seems to be an increasingly close relationship between Anika and DepuyMitek -- for all I know, that might be what attracted the hedge funds -- but ...
If you really like the company's fundamentals (and right now, especially with the imminent arrival of a potentially strong helmsman, what's not to like?), you might consider going long on the company.
But if you want to roll the dice and "play" the market fo short-term dips and hills, you should at least learn how the relatively small number of outstanding shares are distributed across classes of investors (e.g., institutional, insiders, & regular folks). See for yourself how many (or rather, how few) shares are actually available for "trading" by retail (ordinary folk type of) traders, and then compare that number with the actual # of shares traded on a given day. In other words, acquaint yourself with what it is you're getting yourself into.
I'm not saying you should or shouldn't. But you should know who your trading "partners" are, if what you're planning to do is gambling the market.
sorry I meant low implied volatility pertaining to the march call options contracts. i actually went long instead of getting options. right now isn't the best time getting into options due to political garbage. i don't really play the market unless it's going short.