Well, I was certainly wrong. We bottomed in late November, had a nice rally, then built a solid five week base. Most of the moving averages had turned up and with the next conference call a month away it looked clear that the symmetrical triangle would breakout to the upside. Oops.
It's not the news that is important, but how a stock reacts to the news. Clearly the market didn't like the news, so there is no point in arguing. With that said, the intensity of the selloff what a bit surprising and there is little doubt that machines (algos / high frequency trading) added fuel to the selling. However, that doesn't change the fact that the chart is now broken and all-time lows ($6.45) will be tested soon. Unfortunately this stock is going to find a bottom and build a new base before heading higher.
If a team can make it happen, Solazyme can. It is just that the growth will be very slow. Commercial development encompasses so much when working in real volumes. Putting an entire process technology together, understanding interdependencies, developing co-products (which often requires additional tiers of innovation and time for bizdev) and then integrating them into an overall business is tough, timely and expensive. Mistakes from poor scaling in the pilot plant, with capital equipment cost in the millions of dollars and months in delivery times, present a fatal risk for this small company. This organization needs to focus on this scale up with discipline like never before. There is value in renewables we get it! Stop with publicizing lab data and gimmick GMOs; youre not an R&D start-up anymore and start talking and producing in kTons.
Anything else, is meaningless right now. Just ask the market.
Stop beating yourself up.
We are ALL wrong most of the time. I for one value your insight.
I took the opportunity to load up by 20K shares over the last 2 days.
We might go lower, we might not.
All I know is "I" believe in this company. I will be holing for years if not decades.
But, I prefer to do it at a $7 average than the $12 I was at...! If I can get to $5, all the better.
GLTU & A.
It may or may not test 6.45, I would not be surprised if we claim most of todays losses back in tomorrows session, it will be interestinjg to see the volume. One thing is certain and thats stock stay cheap for only soo long if the story is intact Just as your technical blunder proved, I think its less accurate in smallcap stock compared to big caps. They can easily be moved around and sentiment changes quickly.