I like to buy the forgotten, lonely, and broken then sell the exuberant and frothy. As a once treasured stock tarnishes the masses move on to the next shiny toy, leaving destruction in their wake. That's when I get excited. I try to find what has been tossed aside, knowing that if the sun hits just right the sparkle may bring them back.
Chembio Diagnostics, Inc (CEMI) is a medical diagnostic test developer. On Mar 16, 2020 the stock closed at $2.36, it's lowest point in 9 years. Four days later CEMI announced a $4M order for a COVID-19 test. Eleven days after that CEMI launched their DPP COVID-19 test, triggering the highest volume day ever. The stock peaked at $15.89 a month later.
Alas it was not meant to be as the FDA rejected their test on June 17 and the stock instantly gapped down from $10 to $4. What a change of heart.
CEMI is not giving up. On July 6 they announced a US FDA contract to develop a COVID point-of-care antigen system. They also announced they are revising the system and will seek EUA approval from the FDA for their system. The question is what happens if they get that FDA clearance.