If you believe the IP we have is worth investing in, and considering we have had zero indication that it isn't any good, then a falling share price should be seen as a buying opportunity for any savvy investor. So should people have been piling in at 50c because the SP was rocketing north? Many did but look how that worked out. A few may have been lucky enough to sell at the top, many lost money. I would far happier to be a buyer at these prices, given we have had no bad news and everything is so far pointing to excellent IP, than buying a rapidly rising SP with the same IP. I was a buyer back when the stock was worth $0.008. I've added to that a number of times but only during downturns, not on a run up, so I've managed to accumulate a lot of shares for a very small time investor.
I couldn't care less about the short percentage. Do they know something we do not? I doubt it. They have seen a stock that has newly entered the ASX200 with no income on the books, a long runway to top end data, and the perfect opportunity to drive the share price down. I've had the exact same thing happen in other shares I hold.
Have a look at the chart below showing IMU over 5yrs.
Look familiar? I would argue we have just experienced the blow off phase, and we're about to roll into the next accumulation phase. I'm not saying we have definitely started heading north, just that we MAY have seen the bottom (zero technical analysis, just a glance at a chart). Smart money is buying now IMHO, not bemoaning the SP weakness. If I had the money, I'd have been mopping up everything I could under 10c as I see that as excellent value, just like I did during the last accumulation phase when IMU was in "stealth mode".
Sadly I do not have the funds available that I did 10yrs ago (before kids and moving towns to somewhere my wife can't find a job and having to build a business from scratch) otherwise I would be in a far stronger financial position than I am now in regards to IMU. Also, hindsight is 20/20. I should have sold off half my shares when it was apparent we were in decline, however I lacked the testicular fortitude as FOMO held me back. Ah well, it is all learning for future investments.
As another example, have a look at the NEU chart, another biotech stock I own. Now the chart is nowhere near as good an example of the four phases above (we did have failures along the way, eg TBI trial, and lots of people were critical of the back-ended Acadia deal), however have a look at where the SP was while we were waiting phase 3 results and FDA approval. A blow-off followed by an accumulation phase where lots of HC posters were bemoaning the SP, followed by a rapid rise. I still think that stock is massively undervalued, and those trying their best to accumulate are also doing their best to suppress the SP while doing so. The short % for NEU, despite FDA approval, huge milestone payments in hand and more to come, and revenue flowing very soon from royalties, is currently the highest it has been for years (MUCH lower than IMU's, however I think an illustration of what those shorts are being used for).
IMU Price at posting:
10.0¢ Sentiment: Buy Disclosure: Held
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