follow_the_money

Wedge setup: Pre-R/S #VolatilityWatch

Long
NASDAQ:EYPT   EyePoint Pharmaceuticals, Inc
I’m sharing this as an impromptu for this upcoming weeks Earnings regarding what stock looks like pre-R/S, being this severely damaged. I look forward to seeing how management goes forward with addressing the company’s current financial state.


Technicals:
- Stock at bottom of wedge = Bullish , for bounce play, especially “good” on news.
- Weekly RSI “oversold”
- Trend lines converge into end of November. If we don’t get all news next week, likely test local ceiling/ floor by EOM .


Why?:
After several offerings and uncertainty due to loan covenant EYPT had made with CRG, Eyepoints stock price has been devastated. (Don’t forget covid). EYPT has upcoming Earnings on November 4th and had previously promised data on anti-vegf treatment “EYPT 1901” by October, 2020. With November and election days away, it is my belief that EYPT management/ BOD are waiting till next week to give news in hopes of catching good news pump from The company update in hopes they can serve Investors a side dish of R/S (Reverse split) to help EYPT meet listing requirements and to set themselves up for their next offering they’ll need - unless the company had some miracle blowout quarter., that is..

Furthermore, with rates as low as they are and as mad as it may sound, we may see them leverage the current low rates to keep cash afloat, as borrowing is currently very cheap.

Again,
I’m sharing this as an impromptu for this upcoming weeks’ Earnings and *hopeful* news regarding what stock looks like pre-R/S, being this severely damaged, and with supposed upcoming FDA filings. I look forward to seeing how management goes forward with addressing the company’s current financial state and using this data to help future financial decisions.

Disclaimer:
I am not a financial advisor. This is not a buy/ or sell recommendation it is to be used for educational purposes only.