Vivos Therapeutics (NASDAQ: VVOS) is up 109% this morning. VVOS stock has no real reason to be doing this other than lots of people are trading in the stock. Yes, yes, we do know about momentum trades and we also generally recommend not getting involved in them.
For there is no news about Vivos. As to what they do: “ Vivos Therapeutics, Inc., a medical technology company, develops and commercializes treatment alternatives for patients with dentofacial abnormalities, obstructive sleep apnea (OSA), and snoring in adults. It offers The Vivos Method, a non-invasive, non-surgical, non-pharmaceutical, multi-disciplinary treatment modality for the treatment of dentofacial abnormalities, OSA, and snoring.” These are all serious problems. Cures, solutions for them, are welcome. But that doesn;t mean that providing them is going to make large amounts of money. Which is where Vivos finds itself - not making lots of money. That’s why the market capitalisation is at around the $8 million level. Well, before this price move at least.
Vivos Therapeutics stock price from Google Finance
Momentum trades - yes, we know, they’re lovely. Everyone else is doing something so if we follow them we’ll make money. Except it’s necessary to grasp why the momentum is happening. Because without that there’s no ability to grasp when it’s going to stop. Or, worse, reverse just as we’ve built up a large position that we’ll not be able to shift quickly.
So, our rule of thumb here is that if something is moving frantically - especially a microcap pharma stock - then we want to know why. Sure, approval by the FDA can move a pharma price this much, easily. But if there’s absolutely no news? Which, here, with VVOS there isn’t, then we’re out.
Yeo, sure, some people are going to make money here. But the worry is that others have the information and we don’t then it’ll not be us making the money. Worse than that, the others would probably be making money out of us. As that’s not the point of either investing or speculation until we some reason for this stock price move then, as we say, we’re out.