Originally, I published the below post at 3:55pm and subsequently tweeted it. Moments after news broke that Point72, formally S.A.C. Steve Cohen’s hedge fund bought a 5.3% stake in Chimerix. The timing could not be any better, or lucky. Thesis re-enforced.
A couple days ago Chimerix (CMRX) got annihilated after failing to achieve primary-endpoints in a phase 3 trial. Shares cratered from around $35 to $6.4. Originally I took a small position around $7 with a stop at the low. It was almost as a gamble, a lot of questions remained and I didn’t share the trade because I thought it may be too risky.
However, this afternoon it was disclosed that an insider bought 125K shares at $7.09.
I added to my original position and now carry an average price of $7.70.
This trade is still risky, so beware. Risk what you could handle to lose, keep a stop in and good luck.
winner winner chicken dinner