Although nothing has changed with SNTA, I believe the market is in the midst of a long overdue 10% correction. If that happens, I see SNTA falling under $1.75 at which point it will be a screaming buy.
I hear you. It just gets frustrating to see the market makers jerk SNTA around without justification. I'm in at $2.65 and will try to ignore the day to day movements that you imply are irrelevant.
With the market up as much as it is, there should not have been that much profit taking. I'm putting a stop loss in at $2 and not looking back.
I hope you are right as I own SPXS which is 3X the reverse of the S&P 500. Unfortunately, every time an expert calls for the market to correct, it keeps chugging higher. Obviously, the Fed will hold the key as the market rally from 2009 to the present has been artificially inflated by their near zero interest rate policy. Eventually, something will give and the market will implode. The question that remains is how much higher it will go before that happens.
I too believe that the market is on the verge of a correction of at least 10% which hasn't occurred since 3 1/2 years ago. (3rd longest in history) In any event, I am 60% in cash, 10% bonds, 20% equities and 10% in SPXS which is triple the reverse of the S&P 500.
With SNTA's flagship drug in Phase III and results expected later this month, failure could result in the share price going below $1. If it succeeds, look for the share price to go above $3. I hope it succeeds, but odds are against it based on past Phase III trial results at other small cap. biotech companies.
Agree; a combination of short sellers and panic sellers as well as profit taking in the overall market might drive SNTA to below $2 temporarily, but once the news is out about a successful drug trial, the stock will soar.
SNTA is down in sympathy with the market and some lingering worries about the recent CEO appointment. Patient investors will be rewarded. Bruce Kovner, has 37 million shares on the line. He didn't become worth $4.8 billion because he was stupid.
If biotech as a whole corrects, SNTA could test $1.75. Although this is highly speculative, SNTA could be a 5-10 bagger over the next few years. I have 1 percent of my overall portfolio in SNTA because of the highly speculative nature of this stock, however, if the price declines to below $2 on no specific news, I will double up. My current cost basis is $2.37.
The past few days, the stock has been reacting as if that's the case, but I have a hunch that this is an overreaction and it will bounce back to where it was prior to the announcement of her departure.
Whitaker's departure after a brief stint as CEO of SNTA has raised red flags this week. Once the dust settles, SNTA will head back to the 3's in anticipation of positive Phase III results of their flagship drug in the 2nd half of 2015. IMHO