Last Updated on February 13, 2020 by Sultan Beardsley
Yesterday started out very promising for LJPC. Based on the early trading activity it seemed we would see a sustained breakout to $10+. Instead, the stock ran to a high of $9.38 followed by a gradual pullback and then a dump to lows around $8.20.
So what happened? In short, we attribute the drop to short-sellers, profit-taking, and panic sellers. Remember there are still several million shares short that need to be covered (i.e. bought and returned to the party they borrowed from). I imagine as we encroached on $10 yesterday these shorts felt threatened because they would start getting margin calls and/or have stop losses kick which prompted a swift and coordinated attack.
Nothing has changed that weakens our investment thesis. We maintain a strong buy rating and will be buying every dip bears offer. We feel that news is around the corner and as our thesis continues to unfold we should enter the double-digit range.
MS Money Moves and its affiliates are long and strong LJPC
Chart provided by R8Plus
Let’s get this bread!