GeoVax (GOVX), Sees a Little Volume.
Normally, we get a little nervous when one of the companies we follow, shows a spike in either price or volume while we are out of town. 90,000 shares is of course nothing, but it was just a week ago that they traded a total of 780 shares, half way through the trading day! So any action gets our ‘divided’ attention! It could be just one buyer, it’s not a lot of money, at these price levels.
And it’s hard to pay attention during Derby week in Tampa. Lot’s of distractions to put it mildly.
But then we remembered – we’re not traders. The stock could jump to $6.00 and then go back to $2.00. Or it could jump to $6.00 and then chug its way (on significant news of course) to $20. Anything can happen to companies with these ridiculously small market capitalizations, post reverse split.
So we’ll reserve any changes in opinion, until GeoVax is deep into Phase III trials, which could be a couple years from now. Early stage biotech companies are for the patient. We know the science, and we know the progress from the interim data they have reported – and so we believe our patience is warranted.
Though there is an army of investors who trade these ideas. So if it does pop, we’ll just take a chill pill.
Look at Corbus (CRBP) for example. Of what getting out too soon (say a 50 or 100% gain) can do for your trading psyche. We call it giving away the winning lotto ticket.
Corbus did a vicious 1:30 reverse split in February of 2023. Small shareholders were screaming at management, and calling the company “scam.” They were predicting on the message boards daily (day in and day out) that it would fall from $4.00 to back under a dollar, and be then forced to do yet another reverse split. Wash, rinse and repeat. So confident in their pessimism.
Then ‘encouraging’ news (no, not an FDA approval) and $4.00 turned into $25. Imagine being one of those town crier’s at $6.00. Did they apologize for encouraging investors to sell? More likely they crawled away in silence. Defeated that they sold at the all-time low, even more defeated that they missed the run up and had their friends and family do the same..
Then the story gets even better. They (wisely) sell $94.5 million in stock in a secondary at $19.00. New town criers surface, complaining that greedy management is lining their pockets. They run and the shares drop to under $25 (if you guessed to $19, you would be correct).
Then it goes to $46.
Mike drop!
Bragging to their friends they bought at $4.00 and sold at $8.00…until they weren’t bragging anymore!
Lesson to be learned? We’re not sure. we’re just saying, during post reverse split mania, anything can happen.
The new (presumably) buyers, don’t care that some unfortunate souls road it from $275 to $4.00. Doh!
Shameless plug on GeoVax:
Could GeoVax report some expected, near expected or out of the blue ‘encouraging’ news? Read our updated report Monday for details. Headlines could related to Gedeptin, EmVeeAye (MVA vaccine), Project NextGen or further progress with the ABL, ProBiogen vaccine manufacturing system.
READ REPORT: Killer, 44-Page Report on our client GeoVax (GOVX).
We’re off to the beach, and no we won’t be starring at quotes. We’re at the beach for the love of God, and we’re in Tampa!
News coverage and progress reporting client. See report for full disclaimer and disclosure details.
