Yes, they make money because they get in before the crowd at the low price. They then pump it up and sell when the price has risen. They sell dreams and people fall for it. These are short-term trades and not long-term investments. I don't know what price you got in on TRXC but if you got in late then you lost. Had you got in at $2+ then you should have taken out half your investment and let the rest ride and watch the action from the sidelines. There were only two possible outcomes here i.e., approval by FDA, stock price rockets, no approval.......HUGE selloff. I'm sorry for your loss as well as that of others.
What you should have done is sold half your holdings when it hit $6. Always take out the money you put in and then relax and see what happens. I too subscribe to Money Map but I never bought shares in TRXC. In hindsight, I should have bought in at the moment that they brought attention to this stock when it was in the $2+ price. This type of stock captures people's imagination and they start piling into it. You have to be quick on your feet, get in before the crowd. It's a short-term play. In my mind, it was a 50/50. The problem is that people start dreaming that it will hit big time and start to count the paper profits.
If they don't get approval, they will have to go back to the drawing board. In the mean time, the stock price will drop big since many are in it only with the hope/bet that this stock will pop. When it doesn't, they will sell and the price of the stock will plummet. In today's times people don't have patience, they want instant gratification. If they don't get it they move on to the next best thing!!!
Phil: I was referring to your comment about being a monster in "years'. Take a look at ICPT. It moved huge on big news and then it went down huge. Take a look at the chart here on yahoo. My point is that if TRXC moves up big then take your profit on most of your shares because it can drop back down big time just like ICPT did. You can of course leave a few shares for the long-term. Realize one thing and that is that not everyone here on yahoo is a long-term investor. They are short-term traders that are only interested in making a quick buck. The huge price increase will move up on "emotion" and on "perceived" future earnings which may or may not materialize.
Hahaha. LOL. Yes, words of wisdom from ME. Great comment. Listen, I'm at home enjoying a couple of beers and having some fun while watching CNBC. I'm off from work today so I have nothing else to do. I only made that statement because there are a lot of novices out there who don't understand how things work. Seasoned investors/traders know what's going on.
It's not going to take "years". The reaction will be immediate to the upside if it gets FDA approval. You want to play this stock NOW. In "years" it might be bankrupt and out of business for one reason or another, for example someone may come up with a better mousetrap or advances in new technology may render their product obsolete. You need to stop dreaming and be realistic. FDA approval is a big thing since it sends the signal that TRXC's product is viable. No one can predict the future. I suspect that if they get approval, contracts and business will start coming in. Just my humble opinion.
Everyone is certain that the FDA will approve. I'm not so sure. The delay on the decision tells me that the FDA still has some doubts. At this point it's a 50/50 but in no way is it a slam dunk. Perhaps someone in the FDA was not properly "rewarded" by TransEnterix or perhaps the "competition" is offering a better perk.
And the perplexing thing is that Morningstar has a 4 star rating on it. Anyway, I'm in it in my Roth/Traditonal ira along with my wife. We can wait a year for the rebound in oil which will eventually come and hopefully the price will rise in a big way and we will get out of it. The thing is that probably other energy funds are in the same boat. But I do agree with you that this fund is not TRowe Price's "star" fund. I give this fund a "buy" because it is at or near the bottom and when oil prices go to @$50+/barrel then this fund should also rise.