Strong versus weak hands....
posted on
Aug 08, 2015 12:51PM
This is an expression one often hears...You'll often see references to this on message boards, often after a stock has been pumped to high heaven with lots of news, major media commentary and industry analysts beating their drums. A lot of the time I think its total horse hockey....just an effort to get retailers buying/holding a high flying stock after it pulls back, so the "smart money" I reference all the time liquidates their remaining holdings.
The beauty of an effective pump though is that it typically contains elements of truth. And I do believe there is truth to strong hands taking advantage of weak, nervous and price sensitive weak retail hands.
Let's start with the current chatter about psoriasis, and the fact that some variants of the disease may provide an avenue for an orphan indication. This information has been out there it appears since at least June of 2011...for over 4 years in other words. If some have been buying based on the knowledge of this potential application for RVX-208 it would be hard for retailers to argue that they're buying based on priveleged information not available to the general public.
With the seemingly ever increasing potential applications for this molecule, and the billions of dollars in market potential.....if there are parties confident in Resverlogix's prospects for success, you can bet their hands are very strong. And you can equally bet that they're not worried about a drop of just one or two dollars....in face they'd probably be thrilled with a drop back to 50 cents provided it shook out all (or close) of the weak nervous retail holders.