How important is it to you what the shareprice was before
you read the announcement that: Dimethaid receives FDA
approval or Dimethaid receives FDA rejection?
What happened in the past doesn't matter. Oh, I can moan about what signals I missed, and try to learn from it.
But you see, that's exactly why I can about the share price today. Actually, not the share price per se, but movements in the price. In a perfect world, there would be no leaks, no insider trading, no selective disclosure. In a perfect world I wouldn't have dropped a bundle on (take your pick of many: WCOM, MEL, PRX, CKM ....). But the fact is that the movement in the share price in those instances was indicative that bad news was getting out. Those of us who kept the faith in those instances were out of luck.
When DMX goes from $8 to $6, even down to $4, I could justify it by the fact that news was increasingly overdue, and the market was perhaps pricing in an increasingly large risk premium given the fact that the company could run out of cash. At some point, though, the market may price in a death spiral. Sometimes the market does know. Not always. But sometimes. And sometimes it overlooks little micro-cap companies that actually do manage to hit a ball out of the park. That's the line we're all trying to walk here.
You're right, of course. After the fact of the announcement it won't have really mattered what the share price was. Certainly if they announce FDA approval then I'll wish I'd had the nerve to buy more. If they announce rejection, then I'll wish I'd paid more attention to my gut. |
