These biotechs go up and down and rarely trade for what they are actually worth- sometimes they trade for alot more than they are worth and sometimes for a lot less than they are worth (as is the case with AMBS right now), but they are NOT long term holds- meaning several years or more. I bought TTNP a few years ago for .70. It ran to $2.50, but I didn’t sell. It drifted back to $1.70 and then they received a CRL form the FDA. It opened the next day in the .30’s. I sold for a loss. Since that time TTNP did a RS , uplisted to the FDA and got FDA approval- yet the market cap is only a third of what it was during the run-up a few years ago.
Imagine if AMBS were to run to a $1.00. Would you actually make the decision to hold for more? You’ve made 20 times what you can buy it for today, but you say to yourself, no I will wait to make 50 times my money. See how crazy that sounds? Don’t be greedy or foolish. Even if they received $50 million tomorrow and the price skyrocketed, (which is when you would want to sell) they would still need to do more financings in the future, more dilutions etc.- the price would go back down at some point (which could be another opportunity to buy back in). I would try to get my average below a $1.00 if possible. If you are unwilling to take the risk to do that, then I would sell for what I could get on the next run-up and move on with the loss, otherwise you will be taking just as big a risk waiting for more money to come later when you could have taken the funds and invested in another stock and made your money back there instead.
Imagine if AMBS were to run to a $1.00. Would you actually make the decision to hold for more? You’ve made 20 times what you can buy it for today, but you say to yourself, no I will wait to make 50 times my money. See how crazy that sounds? Don’t be greedy or foolish. Even if they received $50 million tomorrow and the price skyrocketed, (which is when you would want to sell) they would still need to do more financings in the future, more dilutions etc.- the price would go back down at some point (which could be another opportunity to buy back in). I would try to get my average below a $1.00 if possible. If you are unwilling to take the risk to do that, then I would sell for what I could get on the next run-up and move on with the loss, otherwise you will be taking just as big a risk waiting for more money to come later when you could have taken the funds and invested in another stock and made your money back there instead.
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