course of action in case of announcement

  1. 128 Posts.
    my investment partner and I were just discussing possible SP goals for selling out post next announcement, we were basing our predictions on the SP reaction to our last major ann (GSK %60 rise on day post ann) and came to the following conclusions:
    any ann relating to the GSK deal would probably see a greater rise on a few principals:
    -an update would be far more material than the last ann
    -increased power of accumulators to manipulate the price in an upward manner as to maximize their profits
    thus we came to the conclusion that the price on the said day may see an 80% rise taking it to ~0.045. this may sound steep but it will be interesting to see how these accumulators, who have increased their holdings significantly, manipulate the price.
    it would also seem that an announcement pertaining to testing or the various fmcg company agreements would see a similar reaction as we move past the relatively immaterial stages of development.
    thus we have decided that a reasonable plan of action would be to sell on our price estimates and trade from thereon, possibly reentering entirely the next day should a retrace occur.
    any comments?
 
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