Time for a penny stock pharma lesson. Penny sto
Post# of 36568
(Total Views: 310)
Posted On: 02/09/2021 1:59:21 PM
Time for a penny stock pharma lesson.
Penny stock day traders are looking at percentages not dollar amounts.
Example: If you buy a “Steady Eddie” stock at $100/share, what kind of news is needed and/or how long would it take for it to climb to $125/share (25%)? Months? Years?
If you buy a “Penny” stock at $.20, what kind of news is needed and/or how long would it take for it to climb to $.25 (25%)? Days? Hours?
25% profit for $100,000 is $25,000 whether it is with 1000 shares of “Steady Eddie” or 500,000 shares of “Penny”
And would you want your profit in days/hours or months/years?
Penny stock day traders are looking for two traits in a penny (OTC) stock. Adequate accessible volume (churn) and a predicable pps pop.
Adequate accessible volume (churn) is crucial. Day traders must have enough accessible stock volume so they can quickly buy/sell their shares at the price point that will give them their targeted profit percentage. If the trading is low or slow, they could be left “holding the bag”.
If the day traders can predict when a pps pop might occur, then they can manage their capital accordingly and not have it tied up in stocks with unacceptable idle periods (no profits).
Penny stock drug developing pharmaceuticals fit the bill.
Even though most of these companies have only one new drug in the works and no income (constant cash burn), the idea of a new “miracle” drug excites people, so they invest. Some invest for the long haul from IND to NDA, but eventually after time, others (if not most) investors lose interest, cut losses and sell the stock, so it ends up on the OTC. But penny stock day traders see each step from IND to NDA as individual “horse races” with years in between.
Impending news of a Phase trial result is what day traders look for as the anticipated news increases the pps and potential profits. The NDA would be like hitting the trifecta. Then they sell at their comfort point, either just before, during or immediately after the news and wait for the next Phase news pop to come years later.
Even though GNBT is not purely a drug developing pharmaceutical, this is how the penny stock day traders see it, as evident from what happened last week and Monday to the pps. There are even some brokers that have GNBT in the cannabis business. On Jan 8 when the cc for Feb 5 was announced we were sitting at $.25/share. As that cc day came closer with possible Ii-Key good news results, the pps climbed, propelled by the day traders. The same amount of “churn” was shown after the news, when day traders sold and the pps went south. The “Long Haulers” wouldn’t be selling their holdings. We should to expect to see the same thing happen in the next 7-10 days.
For all those finger pointing, tongue wagging, blame assigning malcontents, if you can’t handle the rollercoaster, get off the ride, or cough the money to buy the (what I believe to be) 5,000,000 million “churn-able” shares that the day traders are using as their playground. Once these shares are taken off the table, we should see the pps stabilized.
If, after the NGIO IPO, the proper GNBT pps evaluation based on the NGIO stock value that GNBT owns happens, and the elimination of the day trader manipulation, if someone then might see fault in the GNBT pps performance, that would be the time to assign blame to management.
Penny stock day traders are looking at percentages not dollar amounts.
Example: If you buy a “Steady Eddie” stock at $100/share, what kind of news is needed and/or how long would it take for it to climb to $125/share (25%)? Months? Years?
If you buy a “Penny” stock at $.20, what kind of news is needed and/or how long would it take for it to climb to $.25 (25%)? Days? Hours?
25% profit for $100,000 is $25,000 whether it is with 1000 shares of “Steady Eddie” or 500,000 shares of “Penny”
And would you want your profit in days/hours or months/years?
Penny stock day traders are looking for two traits in a penny (OTC) stock. Adequate accessible volume (churn) and a predicable pps pop.
Adequate accessible volume (churn) is crucial. Day traders must have enough accessible stock volume so they can quickly buy/sell their shares at the price point that will give them their targeted profit percentage. If the trading is low or slow, they could be left “holding the bag”.
If the day traders can predict when a pps pop might occur, then they can manage their capital accordingly and not have it tied up in stocks with unacceptable idle periods (no profits).
Penny stock drug developing pharmaceuticals fit the bill.
Even though most of these companies have only one new drug in the works and no income (constant cash burn), the idea of a new “miracle” drug excites people, so they invest. Some invest for the long haul from IND to NDA, but eventually after time, others (if not most) investors lose interest, cut losses and sell the stock, so it ends up on the OTC. But penny stock day traders see each step from IND to NDA as individual “horse races” with years in between.
Impending news of a Phase trial result is what day traders look for as the anticipated news increases the pps and potential profits. The NDA would be like hitting the trifecta. Then they sell at their comfort point, either just before, during or immediately after the news and wait for the next Phase news pop to come years later.
Even though GNBT is not purely a drug developing pharmaceutical, this is how the penny stock day traders see it, as evident from what happened last week and Monday to the pps. There are even some brokers that have GNBT in the cannabis business. On Jan 8 when the cc for Feb 5 was announced we were sitting at $.25/share. As that cc day came closer with possible Ii-Key good news results, the pps climbed, propelled by the day traders. The same amount of “churn” was shown after the news, when day traders sold and the pps went south. The “Long Haulers” wouldn’t be selling their holdings. We should to expect to see the same thing happen in the next 7-10 days.
For all those finger pointing, tongue wagging, blame assigning malcontents, if you can’t handle the rollercoaster, get off the ride, or cough the money to buy the (what I believe to be) 5,000,000 million “churn-able” shares that the day traders are using as their playground. Once these shares are taken off the table, we should see the pps stabilized.
If, after the NGIO IPO, the proper GNBT pps evaluation based on the NGIO stock value that GNBT owns happens, and the elimination of the day trader manipulation, if someone then might see fault in the GNBT pps performance, that would be the time to assign blame to management.
(5)
(0)