Here are some thoughts, sans the silliness.
The public announcement moved the stock about 15%, 7% the day of, and 8% the day after; then the stock pulled back. I think, imho, that much of the "hot money" that might boost DEPO's price is tied up right now exploiting various market corrections and rebounds. I guess that if the overall markets were less volatile, DEPO would be higher. I have posted earlier my guess that most of the movement will probably happen in the last two weeks before the ODAC meeting.
The question for you is, do you have other investment opportunities which are very likely to give you a potentially great return in 1 to 2 weeks? A return that is so likely to be rewarding that you are willing to risk missing DEPO altogether?
Because, what will you do if some large amounts of money come into DEPO in the next week or two and drive the price up to the high teens while your money is deployed elsewhere? You'll probably end up missing DEPO altogether. If you look at the chart for ILXO (ODAC was in June 23, 1997 for them), the stock doubled between its notice of the ODAC meeting and the actual date of the meeting. The stock price for ILXO rose early and often, and the peopole who delayed buying because they thought the price would come back down ended up missing the opportunity altogether.
This is why I bought in 4-5 weeks ago. I am happier buying in the 13's and 14's and definitely owning a lot of it, than trying to get fancy with last-minute buying. My approach was simplistic. DEPO is a great stock at a cheap price. Too often, these opportunities vanish before I know it, and when its too late I think "I should have bought that one!".
For me, when I viewed the other places I could have put my money, the risk/reward ratio has been most enticing with DEPO. And even though DEPO is only slightly above my average price, I am much better off holding all this DEPO than if I had all my old investments.
I do agree with chirodoc that technical analysis won't help much at this point. Even those of us who don't take TA seriously can recognize an upward movement on heavy volume as well as the next investor.
I wonder if this posting helps you any more than my previous one, though. Since I may just be clogging up this thread with my ramblings, I think I'll stop here and read a bedtime story to my kids. Maybe something from my collection of unread technical analysis books. . .
Best Regards,
Tom D |
