Remember me? I am the retired health care lawyer that was all over this board and universally derided for advocating a short position in AFFY when it was about $16.50 share. At that time, I added to my short position for the reasons stated in my post and also added puts. I now have a six figure profit on this trade should I choose to close my position, which I do not at this time. Here is why. IMHO AFFY does not have the cash nor the time to rehabilitate Omontys. I listened to the conference call. The AFFY management has their hands full insofar as damage control is concerned and does not have a clue why Omontys caused the patient deaths. The adverse reactions are geographically diverse and are not limited to a specific lot or manufacturing date of the medication. While it is good PR for corporations to tout patient safety and the "voluntariness" of the recall, AFFY really did not have a choice but to endorse a voluntary recall or the FDA itself would have enforced an involuntary recall. There are no other products in the pipeline. The damage to Omontys at this point is sort of like the damage to the reputation of Pistorius. I doubt either will recover.
Smart traders set sensible targets and close positions when they're hit. AFFY is at its cash level; there may be a slow bleed down to zero, but with your self described investing acumen, you can surely do better by cashing out now and finding some other opportunity that will move faster.
Is everyone forgetting the possibilities omontys still has.such a small allergic reaction.and you might find out the deaths were not from omontys.maybe it was peanuts or just would of happened with epogen
The fly in the ointment so to speak with respect to your point is the fact that there were serious "inexplicable" discrepancies between the incidence of serioud adverse reactions reported results of the European based PEARL study (unacceptably high) of Omontys and the USA based EMERALD study (well within safety endpoints).
it's wonderful that you made all that money but only a fool or a liar would risk the gain you made to make another few thousand dollars (even $10K). Me thinks you aee either exagerating or you a so full of yourself that lying seems right to you.
Well americanbullybear, I do not know what rock you crawled from beneath, but I looked at your posts and can honestly say that, while you are a paid basher, you are not worth whatever minimum wage your employers are paying you. I will take your derision as support for my short position. When you start to congratulate me on my wisdom, I know it is time to cover.
Thanks for the info do you think is there any thing left on this company how come lots of people on the post still belive it would rebound. I read all news and fill like buying puts on this one big time they have no other drugs and no cash not sure if March put is right
The MMs control this stock. There are reasons it may go up that have nothing whatsoever to do with fundamentals but everything to do with MM profits. It is a MM question really of how many "retail" longs and shorts are there and at what price can I take this stock without damaging my MM position bearing in mind that eventually fundamentals will determine AFFY's value. Also, there is always the chance that something unexpected (let's say a Takeda buyout) occurs. Should nothing out of the ordinary happen, then IMHO Affymax cannot survive the Omontys debacle and the stock is headed to worthless. A lot of retail investors like to believe that, at this price, AFFY is cheap, but there is no rule that says that it cannot go lower and there are a lot legitimate reasons why it should.
You are already late to the party. And PUTS are for suckers. It is mainly use as hedge to a long position on the stock. This is probably going to zero but you will have to wait because there are still a lot of bottom feeders and gamblers grabbing the stock at this price range thinking it is merely an overreaction. I wish I was able to short it but it already gapped down bigtime in premarket. Shorting it now is also risky because the market is very irrational. I will just stay in the sideline on this one. Btw, my condolences to the wounded longs.