Hi
@Hanan17,
Firstly I would like to say welcome to the thread!
Since you are a new investor I will pass on some information that has served me will in the spec space & hopefully you can make some money here.
There are a few reasons investors sell down on this type of news & I'll put them into 3 categories (for simplicity).
Traders - will usually have a profit target & once met will sell out. These targets are usually based on charting & require some volume to get out of the position.
Large Investors/Institutions - Hold large position sizes, so require volume to get out or sell a meaningful sized parcel. If there is limited volume their selling will lower the SP (I will talk a little about this later).
Free Carriers - This is when an investor has doubled or more their money, sells 1/2 their position & holds the other 1/2 risk free.
In the case of GMV - 40c is where all IPO buyers have made 100%, so they could free carry, as well as anyone that purchased lower. What the FDA announcement really did though, was allow larger holders to reduce risk, as it was an obviously high volume announcement.
This leads me to my next point - "know what you are buying & why you are buying it". Once I realised this simple phrase, I slept wayyyyy better at night!!!
Let me give you one simple reason I own this stock today & it has little to do with why I owned it at 20c, but has everything to do with why I own it at 39c or 50c or whatever:
As a stock rises in value, the risk profile changes. At 14c, the EV & MC here were tiny & it was a no brainer buy (especially in hindsight). But now the profile is different, there are more shares on issue, the MC is higher etc.
The current MC = Shares on Issue (taken from the most recent 3B) x Share price
305,009,112 x 39c = $118,953,554
For that uplift in MC value, I have seen substantial results & de-risking of the business IMO.
- Additional contract signed for US$67.5M (unexpected)
- Execution & payment of $5M JV agreement in China.
- FDA approval which increases the likely-hood of approvals in other areas.
- Increase in minimum commitments from the Silverlake Agreement.
- All on time & within a 4 month period... Are you kidding me!!!
The best is yet to come.
I think this is Yakov Gevas legacy business & he now owns 63.34% of the company, talk about incentive to succeed:
I am happy to give him a measly 70M performance shares; most of the work was done prior to IPO & these shares were offered as performance shares to protect us as investors.
Yakov has also taken his own money out of his pocket & purchased a further 433K shares on market; why would a man worth millions of dollars buy shares in a company he already owns >50% of? I'm guessing because they were so cheap he couldn't help himself, but I also think more importantly, he wants to own as much of this business as he can & having it succeed is VERY important to him!!
But the real question is, what is the exit strategy for someone that owns >60% of a company worth >$100M & I expect a lot more in years to come.....? He can't just sell all of them on market once his escrow period is up.
This is not a question I want answered, but one you should ponder on yourself.
I like to invest with guys that know what they are doing & make real money... Yakov Geva ticks that box for me & thats why I'm here!
Lets all enjoy the ride, days like this are just noise
