Honestly, it surprised me. To a great degree. There are so much money to make these few days and I am in the middle of it, petrified. Pharmaxis shareholder, woke up on the 26 of May in a bloodbath. Pharmaxis reported that the European Union officials indicated that they would refuse the company's application to market its Bronchitol treatment for Cystic fibrosis. The European Committee for Medicinal Products for Human Use (CMPH) informally voted down Bronchitol in a meeting with Pharmaxis last week. Note, this announcement came a day after Pharmaxis CEO sold 500,000 shares for $2.95 each (do you think SEC should look at this?)
Share price went down from 2.81 to as low as $0.76. I know nothing much about Pharmaxis, but I could not resist to nibble a small bite of the company. I bought a few on low $0.80, which got me nervous as the stock closed the day at $0.76. Yes, I should have had a stop loss, and to be honest I do have (an imaginary) stop loss. But I did not touch the sell button, partly because I don't like being wrong and losing money at the same time (sounds like a Mark Douglas' line from his book - Trading in the Zone, doesn't it?)
Anyway, the next morning, in the first hour, the stock price went back up to $0.845. I was feeling a bit better, until an hour later, the selling was very intensive, and saw the price reached $0.71. That was 15% swing in one and half hour. Somebody making heaps of money there.
And then this morning, 27 May, PXS went back up again to as high as $0.93 or 30%. The depth look quite healthy too. A director of the company also bought a nice chunk this morning at $0.80..
Now, big question...should I sell it or keep it.. I can't count on my luck too many times, can I..
