OK you trader people, here we have Fluidigm, which you could say is a covid play but it has a bit more going for it than that.
At the moment it's trading at 5.55 Mar 2019 it was trading at over 14.00 and in Aug 2020 it go pretty close to that on a spike Last March it was at under 2 bucks.
Quite the range, so why am I talking about such a volatile stock, well I often look for stocks that have had a spike and they can represent very good opportunities a couple of months after a spike. First we have to talk about the recent action, the only reason I mention historical pricing is to show that it is not a complete flash in the pan and that it is capable of being above 10 dollars. So the most recent spike to over 12 bucks was Aug 2020, first there was a rise early in the month due to an earnings beat (+20%) and then on Aug 25th there was an announcement of FDA EUA for a saliva test for covid. These things tend to follow a pattern, spike, everyone piling on and then a dramatic drop in stock price straight after as people exit the stock and move onto something else, then there is usually a bit of a comeback for the stock as people try to work out how much this might mean in earnings and then the stock tends to drift slowly down and find a new support level. The stock then trades in a range for a while before the possibility of a renewed ascent. Sometimes a big player will accumulate or it could be that people come to the realisation that earning will see a significant increase or they get another contract etc.
At the moment this stock has foound it's range which is roughly between 5.4 - 7.0. It is at the bottom of that range now.
So it's going to go up right? Well the only thing you have to check for is if there are reasos why this could drop out of the range? Well nor mally at this point I would have a look at recent news and try to ascertain whether there are announcements coming on this one.
So fortunately they just had earnings, looking at the info on there the 4th quarter reads like a dream Highest company revenue of all time 38% increase 18% increase for full year. Cytometry revenue increasing, It's hard to find bad nes in these figures so IMO this is headed back towards 7 bucks over the next couple of months. Might be a good idea to ait for confirmation but I would prob go in now as it is the bottom of the channel and the best opportunity to maximise gains.
This is for entertainment only, I am not a professional and don't blame me if you lose your balls following my idea. GLTA
Trade closed: stop reached
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Idea failed, long term it could be a good bet but once it dropped that far below the support line it might take a long time.
Some time has passed and this stock and my position in it has taken a real beating....what are your thoughts on recovery?....they seem to have some great technology for labs...but the cost of the equipment at $300,000 seems to be real deal breaker....however they also have recently announced entry into India and also China which would seem to be huge for them....they made a very conservative 1st quarter earnings forecast....but their COVID testing income seems to be questionable....
Oscarthefuzz
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@Stevehamburger, I did not expect it to drop below the support line but I would have no hesitation buying in at this price if I had spare cash. It is now sitting on an older support price, sorry you are taking a beating but for me I think it would be worth your while holding on, if you look at the latest idea on Fluidigm it expands a bit more on the metrics, I should say I do not currently have a position in Fluidigm.