I think it takes stones to be long a company like this..micro cap stocks are very high risk.
I've made some money in PWE and PGH trading them over the years, and I was a long holder way back before the infamous Halloween Massacre. Clearly oil prices have hurt all oil stocks, but the damage here and at companies like PWE is beyond that. Some of that is overdone and these will rebound sharply when oil does finally recover. The problem is we don't know how long before that happens. I do think you will see sharp rebounds continue followed by further price declines. I think a near term bounce is due, but I am not sure I would hold this for the long run at this time. Still alot of uncertainty. I do think a reverse stock split is probably likely and so I guess my point is consider selling on the bounces and then wait for pullbacks before adding. Trade around a core position essentially and don't just average cost down. Good luck.
Normally I would agree, but the persistent selloff suggests lack of faith in any turnaround. I thought $1.90 was a good point to trade for a bounce and now it's around $1.70. I don't know if I will add more yet if it keeps going down. Sure at some point this will bounce big, but will it happen at $1.70 or $1.50 or $1.00? There are much safer and better ways to play oil then this. I bit off a small trade and it's already not working. My position is rather small for me so I'm going to hold for near term at least. Realistically, it should make a run to at least $2.20, but the constant selling each day makes me question whether that bounce will even happen now. The company is in better shape today than the stock price suggests, but near term that doesn't matter as the future is rather uncertain.
I guess if you feel management is making the wrong decision than it probably doesn't make sense to hold on to shares long term. I initially bought on the buyout offer. However, I feel that rejecting the offer indicates management feels the company is worth more than $88 per share. So I see shares trading down under $60 and feel it's a great opportunity to get shares at a super discount. Teva would not have offered this much money if Mylan wasn't worth at least that amount. The share price may not reflect $88 today or even in 6 months, but I believe at these prices the stock is a great buy and will reward investors nicely over time. If management increases the Perrigo offer and feels it is the right decision I will support it myself.
Look the strong market was holding this above $5 for the last month or two. The recent pullback has sent this back to $5, and I believe the near term bottom is around $4.50 at worst. Again, the stock will continue to trend downward until results of most recent tests are known. Then if they are strong stock will pop up nicely and could become a strong stock again. Stocks like ECYT trade on momentum and testing data. The fact that ECYT is under $5 does not mean it is bad news. It just is how biotech stocks trade when they are in this window.
I still like ECYT and hold a small position. It is speculative in nature so don't look at this as a secure investment like I feel MYL is and why I backed up truck on that today and not ECYT. That said if things go well ECYT will be worth well north of $10 in 2-3 years. Take a look at a stock like CMRX and these 2 stocks were close to same value 1 1/2 ago and if ECYT realizes its potential could trade with this sort of market cap. Of course if the results are not strong enough than it will trend towards $4 or lower. Clearly, the risk reward is favorable at these levels and I would consider adding some here if it's in your risk profile to do so.
I would only trade stocks like this for a quick buck. I find stocks with microcaps under $100 are usually not worth the risk. If you want speculation with a little more substance I would consider SGYP or ONTY.
It's not likely, but you never know. What I do know is that ABT trades at almost same price as MYL even though they have almost half the EPS and less growth. Granted not the same animal, but sure seems to me MYL is a steal at these levels.
Sentiment: Strong Buy
I thought it would bounce once it hit under $2, but to see it go down this much seems irrational. Company is trading as if it's about to go out of business which is not going to happen. So if you have the stomach add here. I went a safer route and added MYL today instead. But, looks very tempting to buy at these levels.
I bought at what I thought was a bottom..1.91..so all the way down from $3 every drop could be a bottom..you never know. Personally, I'm thinking of selling and taking my small loss. Not sure this has hit bottom yet.
I supported Mylan in their decision to fend off Teva bid, and pursue Perrigo. However, how can they expect to get a deal done with a meaningless premium they offered to Perrigo. I'm a little bit ticked off now..I'm willing to forgo the quick buck off the Teva deal because they felt going for Perrigo was the right direction. What kind of offer is this, and what is the real plan here. Bottom line is they turned down over $80 a share and now stand at under $50. The only way they could do this is if they felt the stock would be worth much more than $80 in the next year or two. Otherwise, there was no reason to fend off Teva. I'm going give this until next week, but mgmt have some explaining to do.
The stock will set a new 52 week low in the next few months. This climb doesn't really make sense other than maybe because of all the sales people believe they will liquidate the company and look at the book value. If that happens that could yield some gains. I don't see that happening and I think they are selling their best assets to pay down debt and stay afloat. Hardly, a sound long term strategy. I own PGH which is also getting hammered, but they are hedged and not forced to sell their best assets yet.