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Biotech / Medical : Immunomedics (IMMU) - moderated

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To: weatherproof who wrote (45934)4/28/2018 11:31:03 AM
From: Renmanco3 Recommendations   of 63283
 
One of the most challenging aspects of investing in these early stage companies is dealing with the volatility....and the accompanying psychology.
It is not uncommon for such stocks to have swings of more than 30, 40, 50%....or more on an irregular but recurring basis and the temptation/fear is that "someone knows something that I do not....and I had best either nail down my profit and/or sell before the loss becomes greater."
I great anchor at these times is to reexamine the company's basic fundamental story, including a review of insider ownership and see what those really in the know are doing with their shares save for taking small increments off the table periodically to diversify what are typically oversized positions.
I recall doing a study of Medtronic about 20 years ago tracing its IPO through the date of my study. The number of 50%++ swings was very frightful to say the least but the overall compound return over 30 years was astounding. Lesson learned.
Just look at the volatility of IMMU since its IPO. Huge price swings...and no real net progress. Finally, we had a series of terrific catalysts and I suspect they are only the beginning of what I'll call a redemption for long-term holders. The fact that G and S have been exiting is another perverse catalyst that I really like seeing.
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