How To Buy Galmed Pharmaceuticals Stock GLMD For HUGE Profits

How To Buy Galmed Pharmaceuticals stock GLMDWe need to know how to buy Galmed Pharmaceuticals stock (GLMD $7.33) after today’s action so you can profit and not get suckered in. It is another day and you guessed it, another pharmaceutical company has a breakout session and ends up over 44%. (Thanks Jon for showing me this one :) ) This time it was Galmed making the move to the promise land. They released earnings yesterday and then today, the market rewarded them with a great trading day. The problem is, are they deserving of a 44% gain? This is a tricky question to try to answer, but here is my take on it.



As you can see from the following articles I have written over the last couple of weeks, there have been quite a few pharmaceutical stocks doing exactly what GLMD did today. They explode on the scene for a massive one day gain and then give back a HUGE chunk of that gain the very next day.

HOW TO BUY GENOCEA STOCK
HOW TO BUY ARGOS STOCK
HOW TO SHORT ZYNERBA STOCK

You can see what this company does from Zack’s Investment Research over at clintongazette…“Galmed Pharmaceuticals Ltd. is a clinical-stage biopharmaceutical company. It is focused on developing therapies for liver diseases and gallstones. Galmed Pharmaceuticals Ltd. is based in Tel Aviv, Israel.”  I am starting to see a pattern with these pharmaceutical companies when they announce earnings.  They release poor earnings and then say some positive remarks about some drug they are testing and the next thing you know, the stock goes through the roof.  For those hoping for a repeat of that the following day, they are usually sitting around sweating it out as the stock retreats to a more deserving level.  (Check ZYNE for example)  This will definitely give you an idea on how to buy Galmed Pharmaceuticals stock from here on out.

Before the earnings announcement and today’s run up, this stock traded down substantially from previous highs.  It is still  down about 40% from it’s 52 week high as you can see below.  So it is an intriguing play, but I am not sure a long position tomorrow is the play I would personally make.  That is not to say that you can’t pick a good entry point later down the road.  I can tell you that I have made some very nice profits shorting ACAD a while back after an explosion and then went on to take on a0 long position when everything calmed down, which has been paying off very nicely.  Will this be the same?  Only time will tell, but we need to look at other similar events to help us properly predict the outcome of this one.

How To Buy Galmed Pharmaceuticals Ltd. GLMD



So let’s get right to it.  You probably wondering what I would do with this one.  I can tell you that I am strongly considering shorting this tomorrow right out of the gate.  I usually would of tried to short this on the day of the explosion right before the closing bell.  It seems that when the investors have time to digest the run up, they realize that locking in some profits is usually the best way to go and thus selloff their stocks throughout the next trading day as seen from the stocks I mentioned up above.  But you can’t be greedy with the short though.  I find that it only last about 1 to 2 trading sessions, depending on how much it gives back.  GNCA gave back over 20% in one day and then started a slow comeback.  ACAD did something a bit similar and has also continued to climb afterwards.  So go into tomorrow knowing that the probability of a drop is high, but the stock does have a good chance of climbing higher after the dust settles over the next two trading sessions.  Now you know my answer for tomorrow when it comes to how to buy Galmed Pharmaceuticals stock, and this is to short it for 1 to 2 days and then get away from the short. As always, good luck and happy trading.

UPDATE 4-7-16:  You can see that all predictions for this once again have been solid.  Just as always, I would suggest to short cover 50% of the play at the 10% level.  Then take the remaining shares and short cover 25% at 5% if it hits it and the remaining if it gets back to even.  That way you lock in a very nice gain for the day and then it is time for a nice meal to celebrate.  Good luck and happy trading.

How To Buy Galmed Pharmaceuticals Stock?

 

Comments

  1. I tried to short GLMD also as you suggested but my broker had no shares to short so I missed out. The company has no cash flow and negative income, but there is hype about their attendance at the International Liver Congress. What are your thoughts about plays for Monday/Tue? I’m going to watch for a bounce and possibly try to short it again. It closed at 6.70. I feel there will be resistance in the 6.00 area same as what occurred with GNCA

    • Stock Moe says:

      I got to tell you Jon, I have taken up quite a few short positions on these pharmaceutical companies as of late. I try not to get too greedy with them and lock in most of the profit as soon as certain levels are hit. So my short positions, as of now, are a mere fraction of the original shorts, but that is what I am looking at to start Monday. Sometimes you can even go with the call/put options if you are feeling really risky. They can obviously be very profitable or cost you just about your entire investment. But something to consider if the brokers don’t allow you to short a stock. As for this week, I will watching for opportunities like the last few I have written about. The last 3 months for me have been outstanding in terms of investment return. So I will be patient and just finish out a few of these short positions for now and see what happens this week as more stocks report. Thanks for writing…Moe

  2. Hello Moe, Any insight on RXPX? It had a nice run today. I’m going to take a look at the fundamentals & technical s more tonight and see if its a short play for .50 or more before the weeks out. Let me know what you think. Also do you have an open blog/etc to reach you at? Thanks.

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