Dont go 100% of the eggs on NURO. I once thought this was a diamond in the rough and this is what happened. The shelf registration was released subtly without PR and the stock fell about 20-30% that day. Later the company issued PR that their was a shelf and the stock dropped another 20-30%. Then they issued stock at about a 30% discount to the then currently trading price.
You know what really burns me... They had a deal with Wal-Mart Canada to supply DPNchecks and did not even issue a PR on the news. The news came out, the stock jumped 10-20% that day only to fall and go negative.
If there is an Amgen deal I would not be suprised if the dont issue a PR like they are trying to hide good news. Yes I am disgruntle and yes I would like a reason to believe again so I can make money here. I just don't think that is now.
Shelf registration was preannounced last week. The only surprise was its size and the possible inclusion of preferred stock and warrants (which will lead to a big increase in short interest). I agree that the Company has been poorly managed, the executives are self-serving and a double reverse split is enough to make any investor run for the hills. But I still like their products and think that if they gain some traction, the stock will recover. We've had two complete changes in ownership (including one impending) in the past 1 1/2 years. The only other alternative for them was to go out of business. This ay still happen, but not in the near future. The real questions are who they'll sell the new stock to, how long they will hold on to their shares, will they build revenues and will the clinical trials in progress lead to greater reimbursement and clinical acceptance.
The most I ever put into a single stock was about 20% - when I was I younger and had less money. Now I dont put more than 4 or 5% max (generally 2 or 3% max). Its good to diversify. Some of the nuro like stocks will be megabaggers, some will go nowhere, others will drift into oblivion. Over time my portfolio has enabled me to quit day job.
A rumor proven untrue plus a shelf registration the same week could be devistating. I am not saying that the rumor is untrue but if it is. One of the best ways to make a stock go down is to spread a rumor and then later prove that it is untrue. Someone has invested a lot in Neurometrix's failure.