I’ve traded in and out of $PACB in the past with some success. I had one big win but was stung with plenty of whipsaws due to my bad timing and inability to hold the stock with conviction; as a result, I took it off my radar until now.
From the recent earning announcement, it seems that $PACB’s Gene Sequencer has been perfected in a way that the biotech industry is beginning to take notice. For further reading on this, please click on this link.
I’m jumping back on this trade because of better fundamental and because of technical breakout.
Take a look at the daily chart below:
Did you see the persistence bullish price action after the breakout point despite the general market correction for the last few days?
Below is the weekly chart:
If $PACB’s revamped Gene Sequencer becomes the favorite in the biotech industry, we can expect to see the price climbs back to the IPO level of $16. (Don’t need me to remind you of the Big IF here…)
I was planning to buy more from scaling down. Since price refused to go down, I had no choice but began buying when price kept on climbing for the last two days.
My 2 cents.
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My favorite long term position. Great chart!
Thank you OA!
Cheers!
The biotech space I will leave to the experts and follow. Do you like this one as an investment or a trade or both? Followed in ONVO already. Obviously just asking for your opinion. Risk is a solo sport.
Like your work. Been a reader for awhile now.
FA, thanks for your feedback.
Cheers!
Hello FA, it is an interesting question. The truth of the matter is that, to me, all stock purchase is a dynamic event. I can go in as a long-term investment originally but may come out of it as a trade or vice-versa. It all comes down to the constant influx of new information that will either keep me in the game or take me out of the trade.
My recent $INO trade is an example. I originally like the stock as an investment because of its potential as a disruptive medical technology that can change the world. The timing was just right as I caught the breakout over a buck and bought the stock immediately. As I learned more about $INO and its recent pre-clinical trial results, I got more convinced and added more. I was even able to withstand a week of pull-back after the initial burst over a buck. However, as the 4th week started off with a big bang to $3 buck, I found myself questioning the wisdom of “sitting tight” on my huge unrealized gain. If price could not hold above $2.90, I had no interest in giving back the unrealized gain for the sake of “possible” bigger pay-off. By taking a gain of over 100% return of my investment now, I locked in sure gain. And I did exactly that by selling 80% of my position the next morning after it fell off the $2.90 threshold. In hindsight, it was a good decision.
As you can see, I went in as an investment but took my money and ran when I saw a quick profit to be had. The quick and sudden parabolic move of the stock price was new information, the mega-volume that went along with the price rise was also new information. These kind of trading activities suggested the possibility of day-traders jumping in for a fast buck. If you are offering a big gain in that kind of fast price action, you have to learn to bite the bullet and take it before the collapse in price even though you may miss a much bigger pay-off from a possible take-over news or something that can drive the price even higher. Trust me, it was not an easy decision for my greed was telling me to hold for more.
While I still held 20% of my position, I came upon new information offered from Seeking Alpha article that was quite disturbing. It didn’t matter if the information could be disputed or refuted; but if I was disturbed, than 6 out of 10 other people who read it would be disturbed as well. So, my logical action would be to sell the 20% at market open which I did.
In summary, any trade I’ve made can stay as an investment as originally intended as long as new information does not put me in a position to get out of the trade either to lock in huge profit or cut my losses quickly. Therefore, for now, $PACB is an investment for me; but if the market has decided to favor me by driving the price of $PACB into stratosphere in a short-time span, you can count on me taking my profit as a trade; otherwise, I do not mind a steady slow climb back to the IPO price of $16.
Hope it helps.
Cheers!