Its Over, page-355

  1. 21,411 Posts.
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    Those who followed my posts would have known that I cautioned about Blue Sky Alternative (BLA) after the stock was adversely revealed by AFR investigative journalism. Yes, the one that destroyed BIG and GSW that most holders would rather forget. Stocks have the habit of recovering in a big way as BLA did in the whole of July, rising from the lows of $1.40 to a high of $2.79 on 3rd August, a bagger as punters may have (albeit incorrectly) felt that the drop was overdone...but more emerged that its woes were not over it sank to a low of $1.23.

    Time and time again, speculators like speculating on beaten down stocks especially those demonstrating momentum buying. That is certainly the case with EDE ,which rose from 4.2c at the end of Sept to 12c today in a short spate of time, with no known information to support an almost 3 bagger move. EDE is a stock with huge share base of 1.6B shares with market cap now approaching $200m and a staggering market cap/revenue ratio of 280x. Take care before it end in tears again as I expect it could do exactly what BLA did after its high was reached in August. Following market momentum blind on the upside is a sure way to losing money and the worst part is you don't know the rationale for your purchase to begin with (other than trying to make some money).

    With speculation on BIT, you could argue that a big pharma could be on the cards to formalise a prospective takeover bid given its successful clinical trials on HIV-1 and the HIV-1 cure represents a huge addressable global market. And at just $120m market cap, you could argue and postulate that big pharma may be prepared to pay some multiple premiums. So there's at least a reason!

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