I don't know about closing down 17 cents but, a small down close today wouldn't exactly hurt the bullish cause.
ONVO is testing resistance (former support) at $2.50ish. To close down today, just a little bit below that resistance level, would be a better set up for breaking out above it next week than a small close above it today.
You will probably have better luck getting the rule change by asking the Taliban rather than the SEC. At least the Taliban has a bomb and a bomb blowing up under them is about what it take to get the SEC to do anything.
We tested the $2.50 support again today and so far it has held. It is the top of a larger band of support running down to $1.90ish. Very short term resistance stands at $2.69 and we close just above that at $2.73. Let's see if we can close above this level (2.69) tomorrow.
I don't see that much wrong with the direction they went in, especially when you consider the product only came to market 8-9 months ago. My guess is there is a lawyer in the mix someplace. This is a relatively young company and Murphy is probably overly cautious. I'm sure we have all noticed the various class action lawsuits that are being filed against companies. Doing business now days is like traveling in the old west when people had to worry about indians and bandits. Today Indians and bandits have been replaced by lawyers. My guess is he asked the company attorneys to advise him on what data it was safest to release so that it couldn't come back to bite the company & him in the form of a suite later. Attorneys tend to be overly cautious but that's their job.
When the company doesn't yet have a marketable product/drug dilution can be a killer. It's far less a problem when it already has a marketable product. Any company has to raise cash. It's better to do it with a stock offering than taking on debt. It what they do with the cash they raise that counts. It this case funds are being spent to ramp-up production and sales and complete secondary products already in the pipeline. All is normal and all is money well spent and yes I think it will payoff big time or I would be here.
I was a bit surprised today when the shares came back to take out the recent low. I thought there would at least be a week or two of sides action before the low was retested. Once the recent low at $2.78 gave way the price had no trouble falling to $2.50 which is the top end of a range of support. The price bounced off $2.50 and closed slightly above that level. This was all done on three times the average daily volume. Capitulation? Maybe but, I would expect the price to retest that $2.50 and that's when we will find out if it's just temporary support or something more. A gap down open under $2.50 that then closes over that level would be a sign that there's more to that level than just another number on a chart. I bought some at $2.83 last Friday and I bought a small amount today when the price slipped under $2.50 but, some place around $2.20 is where I hope to make the bulk of my purchases. If the price were fall under the $2.00 level and remain under it for more than just a quick spike down, I will probably abandon 2/3rds of my position until it either regains $2 in a convincing manner.
Again I think this is just the normal trials and tribulations of a new company bringing its first product to market.
It's certainly possible someone is working a short attack. But doing so is risky when a company has its product complete and is marketing it. The chance of unexpected positive news is far greater. When a company is still in primary R&D and is really nothing more than a grand hope and wild dreams a short attack is relatively risk free.
The price of the shares would need to trade below $1 for 30 consecutive days.
When a security is found to be not in compliance the exchange issues the company a notification of non-compliance, but the stock is not immediately taken off the stock exchange. This letter gives the company the opportunity to respond with a description of the actions they are taking, or plan to take, to become compliant with continued listing standards. If the company doesn't respond with their plan of action within 10 business days of the receipt of the letter, the exchange would proceed with the delisting. If the exchange accepts the plan, the company's financial progress will be monitored by the exchange according to the milestones outlined in the plan.
A revers split is can be a remedy. You never know for sure but I doubt anything like that would be necessary in this case.
There is a zone of support that starts at about $2.50 and runs down to $1.90ish. I'm hoping for a test into at least the $2.20 area which is where I intend to make another purchase if and when.
Seriously, you can't tell what is going on behind the scenes with companies like this. Merck is involved and god knows who else . If something like that happened, it might be Merck but one potential buyer that really sticks out in my mind is Johnson & Johnson or one of their subsidiaries. Both companies are flush with cash. Both companies expand via takeover.
George, you don't have to care. But I'm a very good trader and just trying to help some of the "shell shocked" investors I see here. Of course you will only know this in hindsight. By the way, why should anyone listen to your opinion.
According to my work, this week will probably close above $2.91 but don't start thinking it's all up from here. Down the road a few weeks from now we should expect the price to at least retest these recent lows.
That last area of support ONVO broke was $3.45. That level now represents resistance. That is why today's bounce stopped where it did. We could retest the underside of that resistance level tomorrow and perhaps exceed it for awhile.
Below we have a support level at the recent low $2.78. Under that we have a major zone of support that begins at $2.52 and runs down to $1.97ish. The best support within that range will come in around $2.20ish. Generally what I will do is buy downside penetration of support levels. After the price breaks below important support levels it should at least bounce back up to that level. If the price bounces back and holds the level continue to hold the shares but, if the price fails to move back above or moves above but fails to hold the level I will sell a portion (usually 1/2) of what I bought. I repeat the process at the next level down. I'm holding portions during this process only because I'm interested in putting on a long term position.
Stright01shot, I have never owned ONVO before last Friday. Don't know how I can prove that to you unless we meet and I show you my account records.
I've been trading since I was in my 20s. I'm now 63 and I've seen this same pattern play out with biotech companies more times than I can count. The company finally gets its product finished. The price has rocketed up in anticipation of what is sure to be a great success. Then as the process of sales and marketing get underway investors become disgruntled when they fail to see profits roll in immediately and they begin to sell. The declining price causes more selling and things begin to "snowball". Eventually it gets overdone and presents the average investor with the best risk/reward ration he is likely to see.
But you don't need to take my word for this. Just select a number of biotech companies that have been successfully marketing their products for 5-10 years. Look up the completion and launch dates of their first product. Then on a long term chart compare the price action of their shares before completion & launch and with that coming after. Much of the time you will find that the price begins to decline not long after either initial completion or first launch. Sometimes the decline is only 25%-30% while other times it's much larger. It depends on the nature of the product/drug and the cost associated with bringing it to market. If you understand this process and how it relates to share price you can make lots of money trading just biotech. If you don't understand that you will likely suffer some pain and angst.
Perhaps I'm wrong but, to me you sound like someone who bought near the high and either sold low or is still holding. If that's the case then you must either find the courage to continue to hold or, if you sold, find the courage to rebuy at some point. Opportunities will present themselves. I tend to layer my purchases in as price falls to areas of long term support.
The best advice I can give is, don’t take today’s earnings news very seriously either way. It’s way too early in the new product life cycle to begin making judgements about success or failure. We have a nice pop higher today. There is bound to be backing, filling and some sort of retest of recent lows. There could even be a new low. Usually these declines end with some type of inverse head and shoulder or with a double or triple bottom patterns. Rarely are they a “V” pattern. (just watch, this time it will be a “V”). We do have a potential inverse head & shoulder in the making on the daily chart.
Most of all if you are unfortunate enough to have bought at much higher prices and now find yourself down 70%-80%, don’t let some poster frighten you into selling your shares. Basically you’ve already “crashed the car”. Now is not the time to think about fastening your seatbelt. Just sit on those shares and let things play out. You may still reap a big win in spite of yourself.
After watching this company for some time, I bought my first shares last Friday at $2.83. I will be buying more.