MSB Trading - 2020, page-325

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ddwn

12,266 Posts.

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11/01/20

12:56

Post #: 42332497
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Originally posted by ton9031 ↑

It brings up an interesting concept.

Since investing 18mths ago and being exposed to this great forum. My learning would not have expanded as quickly as it has if it wasn't for the years of investment knowledge found among you educated people.

I have invested as much of my funds and limited time to learning the art of investing as I can.

In all the recommended books read which are great and after more time experiencing the market and re reading, it has be been valuable method.

However, being student/sucker of the self described experts/salespeople of investment education courses has not been the most beneficial pursuit, Yes I found value but not in direct proportion to the value I payed for it.

I could not have learnt the ideas, principles and analysis of business investing that is to be found right here in a more effective way.

The depth of curiosity and research from the many perspectives is invaluable to the beginner that is me.

For that, I thank each and everyone of you, the for and the against.

Back to my query.

So much discussion and observation has been had about the ability algorithmic trading as a strategy to suppress/lower the price of MSB's shares in both the short term and medium term time frames.

What our people's views on how algorithmic trading will function when not utilised as a shorting technique but instead as a buying strategy in a scenario where in the next 12 months, Mesoblast has it's First USFDA approval and gets 2 clinically meaningful phase 3 read outs?

In particular, could algorithmic trading now be a positive factor functioning as a driver for share price increase?

If so, how do the mechanics of that work? Do they work most effectively on shorter time frames where there is lower volume and slight indecision during a bull run?

Could that not then "snipe" at the sellers volume causing small prices rises which would then work on the psychological impact of urgency to buy from the market?

Are there negatives? Wilder price movements? Greater volatility? I am curious if MSB could have the same price movements as CUV?

I understand both have different share dilution but similar markets just at different life stages.

Most will know CUV current P/E ration is 95 times.

and since gaining approval in the us the price spiked to over $40 before dropping to around $29.

Based on this observation. Could MSB share the same fate? It's a potential high earning company that will have much hype soon around it.

Could algorithmic trading contribute that same volitility and to what effect?

The potentially substantial value being created, is in of course the the technology of MSB being validated and revenue acualised. Before that could we see the same spikes as CUV?

Wild price spikes up would be a nice change.

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I don't have any science behind this, so it is just my observations & general intuition. Probably, nothing you don't already know

Here are my thoughts...

There are different investors in the market, its all about risks vs rewards & timeframe

Human behaviour used to play a bigger part, but now bots have skewed some of that

Bulls & bears, push SP beyond expectations, both ways, as experts play on these human emotions

Bots, play a part, but only ST. As, the valuation of the company comes out in the long run.

This is made worst for Biotech companies, like MSB, as valuations are not easy, as it is still a research company, but transitioning

So, then in the end each investor needs to make their own assessment

@bretto32, with gvhd, i don't think much convincing is required. Look at EAP & JCR experience. Just get FDA approval & then the product will sell itself = unmet medical need

MSB Price at posting: $2.29 Sentiment: Buy Disclosure: Held
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0 Great analysis

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