written by reader Lessons taken away from the RGDO crash

August 26, 2014

This discussion came about following the crash of RGDO bio stock 25/8/14. Id be v interested if others could summarise the lessons they’ve taken away from this fiasco. I think it would assist all (especially newbies) to re-evaluate their investing style and focus their DD. Let the weeping begin.

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Elliot
Member
πŸ‘502

Quite a few of the stocks we follow took some big dips today. Most recovered at least a decent amount, but ACHN doesn’t seem to have. I wonder what is up here. I do not own and have no buy order in, but I am interested in the potential here.

biotechlong (btl)
Member
πŸ‘2793

Elliott, Most commentators attribute today’s ACHN dip to profit-taking. Considering that the SP had doubled (from c. 7 to c. 14) in the past month, I tend to agree with their take. I took advantage of today’s reduced SP to purchase addition LEAP (Jan 16) call options.

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David B.
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πŸ‘855
David B.

Oh RGDO, my most painful investment “lesson” since I went big when I thought BNIKF would go easily to $4 and bought way too much at 1.90 or so. RGDO seemed like a very safe small biotech to me–lots of smart money, the blessings of Dr. KSS and my favorite SA author The Behavioral Economist, fast tracked by the FDA and many advantages it seemed over Coumadin and other options. All the stars seemed to be aligned for the share price to skyrocket within a year. So many super smart people couldn’t be misled on this one now, could they?… Read More Β»

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Alan Harris
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Alan Harris

Wrong……review.

donbarrett
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πŸ‘227
donbarrett

I personally never ever would have invested in speculative biotechs because I am not a scientist, and everything sounds good to me. That means I am easily duped and fooled, and so stayed away happily. Now, however, that we have such a wonderful science expert, and not only one, posting regularly for all of us, I am thrilled to be speculating with the rest of you. It’s enough for me to invest in the good science, knowing that a few will be really successful, some will do ok, and many will fall by the wayside. It only takes one or… Read More Β»

Alan Harris
Guest
Alan Harris

Ouch! $47k aint to be sniffed at, but I know of at least one Irreg who lost 5 times that thru recklessness fueled by greed. Still its a valuable lesson that may well save you $47k into the future. And that lesson is precisely why I set this thread up. The aim was to share our ‘cautionary’ experiences and the lessons learned (espec with newbies, as I was 2 yrs ago when I lost a bundle on something ‘too good to fail’.) in the hope that everyone reading here had the opportunity to recognise silly behavior BEFORE they fell into… Read More Β»

donbarrett
Irregular
πŸ‘227
donbarrett

Hi All, There has been a lot of discussion on this wonderful site regarding two very different strategies, buy-and-hold versus taking profits on a regular basis — getting out when you’re ahead. I just read a great article in Stansberry’s Daily Wealth Trader, which discussed what is probably one of the best things ever said about trading. George Soros, was quoted as saying, “It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong.” We all have to use the strategy that we are comfortable… Read More Β»

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Alan Harris
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Alan Harris

Valuable advice….Thanks Don

Alan Harris
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Alan Harris

If the whole market drops 5, 10, 20%, then relatively, nothing has dropped, just cash has risen. I see whole market drops as buying opportunities and whole market rises as selling opportunities. In the end the market always fluctuates then averages.
Look at the market today….So was 2007/8 a buying or selling opportunity? Which one of those ‘crashed’ blue chip stocks wouldnt you like to have bought and still own today?

Opposeablethumb
Irregular
πŸ‘1313

In retrospect I think of the complexity of blood coagulation that the Doc laid out. Also, that Coumadin has troubles but has been in use for a long time – nothing has come along better. So…. perhaps the target is very complex with many unanticipated pitfalls and any drug will have undesired consequences due to the differences in all of us. Reward would be high as is risk, a small position could return a large profit. No need to take a large position. The fact that some insiders sold a week or two before “D” day could have also been… Read More Β»

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Subramania Kaushik
Member
πŸ‘673
Subramania Kaushik

Been a while on SG after i lost close to $75k on Regado πŸ™
This has been haunting me for the past several weeks. I normally don’t invest that much on a single biotech but this one was an exception. Still trying to recover from the $75k haircut!

Alan Harris
Guest
Alan Harris

Quant of money apart….dont feel too bad. We ALL lost money; We all bled.;We all made a mistake. On that level, you are just ‘one of us’ so v normal. Still, tomorrows another day…..older and (hopefully) wiser. Well you have to take some profit from a loss eh?

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Subramania Kaushik
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Subramania Kaushik

Alan, it does hurt to have lost so much on one stock. But i have moved on and hopefully will recover what i lost in the next year or so!

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sassykind
Member
πŸ‘28
sassykind

Didn’t know this thread was around until (?) Travis referred to it in “Pain Part 3. I can’t always subscribe to the common thread because of mobile b/band limits and more often, these days, will just make a comment. RGDO has been a lesson to us all.. and how!!!! You know sometimes, when you’re a newbie like me, you just have to learn by trial and error…….I read, listen and decide which stocks I’ll “have a go at”; however due to limited funds I’m only able to take a minimum bundle on stocks and THIS ALONE has saved me in… Read More Β»

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Tim
Irregular
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SHOULDA, COULDA, WOULDA, RGDO sounded like the answer to a lot of medical problems. I didn’t bet the farm. Didn’t lose the farm.

Alan Harris
Guest
Alan Harris

I wanted to add these posts from another thread coz I think they are pertinent and may educate others: sogiam sogiam says: November 30, 2014 at 12:28 pm ……From the first time you give me biotech companies, i have interest on this company. Why i get interest? It is promising. They give the facts in that site. You have known how investing cycle, there will be high and low situations. But, if you still confused, why not try to invest for small amount? So if you get the bad situation, so it will be oke, because you just invest for… Read More Β»

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Alan Harris
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Alan Harris

All: If anyone wants to send a jinglebells greeting to KSS…heres the place http://www.stockgumshoe.com/2014/12/microblog-happy-christmas-dr-kss-from-all-us-gummies/