Cross-ramping from 4D Pharma re NASDAQ RNS - but relevant to us, good lesson22 Oct 2020 10:43
2 weeks ago DDDD released clinial trials results that, imho, got misinterpreted by the market and SP tanked . Complete nonsense. People have been selling since and yesterday it reached a point where SP lost 50% of its value from 2 weeks ago (those of you with a position in 4D will be familiar with this pain)!!! People were selling with an idea of jumping back in a few months and buying into the dip.
This glorious morning, RNS arrived informing the market of the SPAC merger of 4D pharma and Longevity Acquisition Corporation (NASDAQ: LOAC) - basically 4D is getting NASDAQ listing, cash and should rocket.
This was on the cards but WAS NOT EXPECTED any time soon - SP shot up 15-20% this AM and a couple of opportunist shorters are expected to get squeezed - and yanks will pick up on this news and want in on the action too presumably.
Lesson for us here is: If you believe in the company - HOLD. If you believe Synterferon (that's what it's called now, isn't it?) is the drug of the similar calibre to aspirin/penicillin and the future go-to drug for viral chest infection then do you want to get caught being out when some big news comes in? (and there could be so many of them )