How are you playing dsco?
I tend to avoid biotech stocks, but this one seems interesting. So the stock finally got the approval its been wanting for years, and the stock explodes...only to close barely up,and then fall the next day, back to where it was pre-approval.
My initial thoguht is, if the best news on the planet for the stock doesn't move it, then can you imagine how badly bad news will crush it? Makes me want to short it.
Then my thought is, they are going to have to dilute the stock more. This dilution should finally be a good thing, since it will be used to market the drug, and produce it. The dilution though, will probably send the shares tumbling to whatever the offer price is. From there, the stock should continue to take off.
So, which is it? Is there nothing that will pop the stock high? Or is the right time to buy after the dilution? Or a third option?