My TakeFor those who have been following my posts in relation to this stock, here is my take on what happened today:
1. There is no obvious rationale for it, just as there is no obvious rationale for the low price before today. Today's run-up may well be the product of computerized trading triggered by a specific sequence of trades. The stock could drop just as quickly tomorrow as a result of the same;
2. A more positive -- but alsomore cynical view -- is that a favourable deal is about to be announced and that information regarding the same has been leaked to people who are trading on it. I believe that this happens all the time, even though it is not legal. I also believe that it will happen in the case of this stock. But whether it is the cause of what we witnessed today is unclear;
3. But if this is not what we witnessed today, I nonetheless believe that we will see it again when a favourable deal is indeed about to be announced, which will be in the very near future. So, I, for one, will not worry if the stock drops back down tomorrow, and i did not sell today. I am waiting for the real thing: A favourable deal that takes the stock up in a way that it stays there. When that happens it will be much more extreme that what we saw today. And I believe that it will happen, because I believe that the stock of CXR/CXRX is woefully underpriced, even after today's run-up. I can easily posit scenarios that would support a price in excess of $10 per share for CXR stock within the next year or two. I cannot prove that that will happen, but, in a rational world, it is well within the range of possibilities.
But is the stock market a rational place. Not really.
So we continue our vigil ...