Tim: Don't look back. I had similar experiences many, many times and I am still alive and well and TRADING. I learned not to marry to any stock because I believe that this type of relationship will ultimately lead to financial impotence.
Fundementally, your accessment of the NMPS's business prospect is sound. I believe what drags down the shares price is the mishandling of the secondary offering. They have, according to its annual report, more than $11 millions under their kitchen sink and they do NOT have to dilute their shares by PPO. I hope that these jokers have learned their lessons the hard way because they are shareholders themselves too. Well, that's history and I don't want to comment on it any more.
After todays announcement, NMPS shares moved up ONLY 7.8 %. That's very modest in view of the market potentials. Maybe a combination of the following reasons results in its small price movement:
1. PPO. This is a very dirty 3-lettered word for ANY stock. Maybe the NMPS management will withdraw this damned thing to support the share price (this is strictly my wishful thinking since I am now a shareholder).
2. Sell-on-news syndrome prevailed again. People will ask: what's for the encore? With the absence of further news, many just bailed out.
3. The general market is in the middle of a HUGH correction before rally towards the general election in November. You could find blood-letting everywhere, including many sound biotechs.
However, against this bearish background, the technical stuff for NMPS remains BULLISH:
1. It tested its phase 2 bottom ($9.5) and held and during the process, it made HIGHER lows.
2, The volume pattern looks good. Since the June 26 bottom at $9.50 (946,500 shares), volume had been in a decreasing trend until today (1,334,900). This pattern suggests that specialist has already finished selling off his inventory for a profit and will start accumulating again. Normally, this calls for a price correction so that he can replenish his inventory at lower prices. However, against a bullish product approval, he might has ALREADY accumulated shares TODAY in anticipations of more positive news from the company and the so-called security analysts. I believe the specialist knows something that we don't. Well, only time will tell.
3. It is comfortably above its 200-days moving average
In summary, I believe once the overhang clouds (PPO and sell-on news) have been cleared, NMPS will fly. So Tim, look forward and cheer up. $31 is still a reasonable target.
******** -20 and counting!
Best wishes.
Note: BTGC looks promising. Watch out for its price/voloume actions at around $9.00. Good luck. |
