BNGO Struggles Continue...What's next?

23 בנוב׳ 2021

BNGO

As the BNGO struggles continue well into the third week of November 2021, what are the takeaways, and what should investors plan for the future?

The Underlying
The company is on track to do at least $15 million in revenue over each of the next five years, the EPS will be cut down to the break even point very soon. The company is currently holding $38 million in cash; providing a safety net for their future. With only $25 million in total liabilities, and over $60 million in assets, the company holds a strong framework for profitability. The company currently has $16 million in long term debt; which is small for a biotech industry. BNGO currently has $2.7 million in Net receivables and $2.9 million in accounts payable. The company is in a strong position financially and is managed well by CFO Christopher Stewart.

Investors are becoming increasingly bearish towards BNGO, we have seen a week now of strong downturn. What is BNGO's bottom? While predicting a bottom on a stock that is so volatile and price elastic is nearly impossible, We can now see that BNGO has broken is previous support of $4.20. I am confident when I say, the price of BNGO may free fall to pre-pump levels. I am setting my next support target at $2.00. I believe that with the recent pull back of the NASDAQ, BNGO was majorly affected. It will be interesting to see what the price of BNGO will do as the NASDAQ turns back to the upside.


Current Positions In BNGO:
Stock positions @$5.97
Short Call options @1.21 for a strike of $5, for 21-01-2022.
Long Put options @0.22 for a strike of $4, for 17-12-2021. This is to hedge against short term downside lost.
Long Put Options @0.05 for a strike of $2, for 21-01-2022. This is my most recent addition to protect against a major free fall in price.