ADVM Increased by 167.62% Within Five Days | Momentum Investing
Adverum Biotechnologies, Inc. (NASDAQ:ADVM), a clinical-stage company that aims to establish gene therapy as a new standard of care for highly prevalent ocular diseases, today announced that it has agreed to sell approximately 106.25 million shares of its common stock (or pre-funded warrants in lieu thereof) to a select group of institutional and accredited healthcare specialist investors in a private placement, at a price per share of $1.20, representing a premium of approximately 20% to Adverum's 30-day volume-weighted average price. The financing is expected to close on February 8, 2024, subject to customary closing conditions. Adverum anticipates the gross proceeds from the private placement to be approximately $127.5 million, before deducting any offering related expenses.
Mizuho analyst Graig Suvannavejh maintains Adverum Biotechnologies with a Buy and raises the price target from $2 to $4.
Momentum Investing
On paper, momentum investing seems less like an investing strategy and more like a knee-jerk reaction to market information. The idea of selling losers and buying winners is seductive, but it flies in the face of the tried and true Wall Street adage, buy low, sell high.
Momentum investing is a trading strategy in which investors buy securities that are rising and sell them when they look to have peaked.The goal is to work with volatility by finding buying opportunities in short-term uptrends and then sell when the securities start to lose momentum.Then, the investor takes the cash and looks for the next short-term uptrend, or buying opportunity, and repeats the process.Skilled traders understand when to enter into a position, how long to hold it for, and when to exit; they can also react to short-term, news-driven spikes or selloffs.
Risks of momentum trading include moving into a position too early, closing out too late, and getting distracted and missing key trends and technical deviations.
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