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Second Chances - Apellis Pharmaceuticals Inc (NASDAQ: APLS)
One thing I've learned over the years is to keep it a buck or 100 with myself. Many people lie to themselves and others when it comes to money, relationships, etc. So when I invest, I like to start off with whether I'm truly speculating. Speculation is basically guessing/hoping/wishing that an investment does well WITHOUT any real research or knowledge of the intrinsic value of the stock. This IS clearly the case with interest or investment in Apellis Pharma. I don't claim to know what the stock does or really care. Using a dating analogy, this is truly a fling and it's important for you to separate your long-term investments from your flings. Apellis Pharmaceuticals Inc (NASDAQ: APLS) is the WHO.
Now let's answer the WHAT: I was listening to a stock investor describe this stock and their investment thesis. While his thesis was thin, I like the premise. Around the middle of this year, the American Society of Retina Specialists (“ASRS”) posted a letter that raised some issues with Apellis’s product SYFOVRE. From what I can gather, APLS' trouble began when physicians found cases of eye inflammation in patients treated with the drug SYFOVRE.
Now let's answer the WHEN: Like infidelity going viral on the Gram, the news immediately caused Apellis’s stock to fall an astonishing 38%, to the $52 range. On July 18th, the stock then proceeded to fall another 24% to an even lower level of $40. My math ain't the greatest but this is almost a 60% fall in a matter of a month. A few days later it tanked an additional 15% as everyone jumped off the bandwagon. We are now talking about a stock down roughly 75%.
Now let's answer the WHY: I was gonna reference E-40 and the track "Captain Save a Hoe", but I don't think this investment is about saving or helping someone who doesn't want to help themselves. I know I am I am taking you off track here a bit --- but I think this investment is more about the human ideal of believing in second chances and comebacks. I think there MIGHT a comeback story here as I listened to a stock analyst communicate that the perceived issue may include the type of needle used to administer the drug.
Now let's answer the HOW: Like mining for gold in '49, I am out speculating at a price in the low $30 dollar range. My goal is to mine for minerals in hopes of finding a diamond in the rough. This investment will likely be very short-term play and a chance to see if the stock stops falling or rallies if the news MIGHT be less bad.
Unclear how this will turn out, but you'll be the first to know. I'd rather learn, earn, and take calculated risks than being the product.
#speculatevsinvesting #getyoururbon #learnandearn
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