Please help me to understand .

C

cashclay

Recently I was in a stock called CING . They were in phase 3 clinical trials for their new ADHD drug. Phase 3 was postive results . The resistance was at around 2 usd. However the stock, also being a low float, was only able to manage to get around the 1.60ish area before now crashing down to .70 cents perhaps the lowest point its ever been. Before the news it was heavily shorted also.
I sold my shares before all this happened but Im so confused. Isnt phase 3 trials being positive a good thing for the company and its stock price??? And I could also understand if it came back down to its orginal area before the news which was at .90 ish but now its trading at .70 . So why did this happen to a company with such a low float and such amazing news in an wealth generating industry?

Someone said its because the company was selling its shares ATM to raise some capital for its adolescents phase 3 trials... The adult phase 3 trials was the one with positive news... Is this also a reason as well?

Sorry I am newb trying to learn the market. Any assistance or help would be of great value.
 
..... Isnt phase 3 trials being positive a good thing for the company and its stock price?? ..... So why did this happen to a company with such a low float and such amazing news in an wealth generating industry?

_________________________________________

WHY?
- It has already been priced in

- those who said it was good news must be the investors who
had already lost tons and tons and tons of money.
So they were trying to push the price up

- It is a trivial piece of news


Professional traders avoid trading penny stocks.

Newbie traders simply love trading penny stocks because it looks extremely cheap. And when the stock price goes up, they become billionaires.


NEXT Q
When is CING closing down?
 
maxinger said:
..... Isnt phase 3 trials being positive a good thing for the company and its stock price?? ..... So why did this happen to a company with such a low float and such amazing news in an wealth generating industry?

_________________________________________

WHY?
- It has already been priced in

- those who said it was good news must be the investors who
had already lost tons and tons and tons of money.
So they were trying to push the price up

- It is a trivial piece of news


Professional traders avoid trading penny stocks.

Newbie traders simply love trading penny stocks because it looks extremely cheap. And when the stock price goes up, they become billionaires.


NEXT Q
When is CING closing down?
More...
what do you mean it’s been priced in ?? priced in by who ? sorry. like i said i’m just a newb trying to learn
 
The world of penny stocks is rife with pump and dump scams,and other nefarious activities. That's why I dont mess with them. And you said resistance was 2.00,on what, a 10 year timeframe?! It hasn't traded over 1.17 in several months. And I noticed it recently traded only 9000 shares ALL DAY. How in the world are you going to make rhyme or reason out of a stock like that?
 
cashclay said:
Recently I was in a stock called CING . They were in phase 3 clinical trials for their new ADHD drug. Phase 3 was postive results . The resistance was at around 2 usd. However the stock, also being a low float, was only able to manage to get around the 1.60ish area before now crashing down to .70 cents perhaps the lowest point its ever been. Before the news it was heavily shorted also.
I sold my shares before all this happened but Im so confused. Isnt phase 3 trials being positive a good thing for the company and its stock price??? And I could also understand if it came back down to its orginal area before the news which was at .90 ish but now its trading at .70 . So why did this happen to a company with such a low float and such amazing news in an wealth generating industry?

Someone said its because the company was selling its shares ATM to raise some capital for its adolescents phase 3 trials... The adult phase 3 trials was the one with positive news... Is this also a reason as well?

Sorry I am newb trying to learn the market. Any assistance or help would be of great value.
More...
I suggest you reread your post sentence by sentence. It is full of assumptions likely with little basis in reality.
 
"...Assuming positive clinical results from the Phase 3 trials, Cingulate plans to submit a New Drug Application (NDA) for CTx-1301 in mid-2024 under the Section 505(b)(2) pathway."

Wait until around X-Mas for it to REALLY bottom. Then you won't care about why it dropped to .70 when you can get it for a quarter.

Because that sure looks like the current trajectory...

cingulate.JPG
 
The stock isn moving much since 12+ months
If anything it’s been slowly drifting downward
It initiated it’s first Phase 3 trial for CTx-1301
Which means it didn’t pass it and likely won’t
Most biotech stocks aren’t making any money

Being a newbie isn’t an excuse,
Surely being stupid is a valid excuse.
You better short biotech hype until you learn.
 
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