AndrewGreenBull's Blog : XNPT—Volatility or Opportunity?

The U.S. stock market took a nose dive in January over the news of weak economic data and the fight between President Obama and the Wall Street big banks. XNPT also had a pullback following the movement of the market, but this pullback has been approved to be an overreaction by yesterday’s big rally. When a stock has solid fundamental and a strong near-term catalyst like XNPT, Money at the sideline waiting for speculation will never be absent for any unreasonable drop.

Some people call the drop volatility, some call it tree shaking, but I prefer to call it opportunity. Isn’t the best timing to increase your position and maximize your gain?

People who have good memory should remember the big shake before DYAX’s drug got a node from FDA. The stock price of DYAX had a sudden drop from 4 to 3.7 before the market close on 11/30/2009, and those people who didn’t have a strong nerve to hold their position surrendered their gains to market makers.

Sometimes trading stock is like a Professional Bull Riders contest. Riders who don’t have best skills and dare not to challenge themselves will not be the winners. “Stock Bull Riders” obviously don’t want to be kicked out by volatility too, on the contrary, they will catch the opportunity to increase their position and maximize their gains. The experience from DYAX already gave us a teach: he who holds the rein tighter is the final winner.

The situation of XNPT is similar to DYAX. As I mentioned in my previous post, the clinical trial data of XN13512 is very satisfactory, and FDA don’t even need adversary panel for the decision. The Market for restless leg syndrome is huge and keeps expanding at a very high percentage rate. However, there maybe some more shakes before FDA decision day since market makers are trying to maximize their gains too. I will get ready for it if there is any such opportunity in the coming week.

See you guys on Feb 9.

Position: long XNPT

*Disclaimer: The author of this post is not a licensed analyst and the purpose of it is for information sharing and discussion only, not recommendation for any stock buying and selling activity. Please do your own decent research before making any trading decision.