Careful not to be scared out by short sellers current selling wave on light volume
This is a great opportunity to buy cheap shares that the short sellers are trying to manipulate the price down with. They are trying to cause a selling stamped so they can cover their 5 million shares short.
Unsure how short sellers 'manipulate' the price down? They borrow the shares from their broker and when the shares fall and when they wish to profit, they buy shares to net out their position with the loaning broker. Shorts actually will cause stocks to rise when covering. Price dropped due to simple selling of shares around 1:50pm; from 2:55pm to 3:05pm and then the last 2 minutes of the trading session. Volume today was 300% of the 20 day average. Several players sold in a thinly traded, volatile, cash poor, micro cap bio tech company.
Short seller manipulate the price downward by selling short on downticks because the uptick rule is no longer enforced. Any short seller can continue to hit as many bids as he wants so long as he has the cash to pay for the sale. It i really easy to drive prices down with short selling. Their problem however is that eventually they must buy back and they hope the price is cheaper. In the case of AMPE . . . NOT A CHANCE! NOT EVEN CLOSE! Let's hope they sell even more to the smart buyers who know what is happening.
This is a tremendous buying opportunity and looks like a BUTTON HOOK coming soon.
On June 7th the company issued this statement: "the company has no plans to do an additional financing at this time." Its been 45 days, but I still doubt they will announce another offering anytime soon.
Most of all the biotech stocks were down today. AMPE, TSRX, IMMU,CLDX, ACRX ect. This was a sector thing not an individual stock thing. No worrieS. Just hope you all added on this weakness! AMPE is one of my top 3 bio to hold for the long term. I dont worry about the daily swings. Good luck all.