Aug. 21 at 12:10 AM
$NVNO $MBOT Perceptive Advisors bought 1.28 million shares last quarter of NVNO. They really did not know. My point is that when it comes to FDA approvals, even the most successful and well informed are completely uninformed. Chart is no help as well, because no one really knows. MBOT is trading like its going to get approved, but...
If approval is denied, you can expect pharma or medical device stock to crater 70-90%, especially if it has no other approved products.
If its approved, you will probably get a massive high volume pop. However, a lot of short term traders will immediately take profits. Soon after the reality of slow adoption of new technologies, drugs will set in. Companies with approved products go through several cycles of dilution in order to fund initial sales development, etc.
Perhaps the best strategy is not to take position until after FDA approval, and even then wait until the initial hype dissipates, the stock declines, then forms a base and then finally breaks out.
