The price is being run up so the people that bought at $3.75, $4.00 $4.40 and higher are dying to get out as close to even as possible. When the stock goes up, the weak will sell anywhere near break even point. Then, when the "BEAR RAID" comes, the rest of the people on the fence will sell. Shorts will be able to cover and buy long at the same time for approval. They might even short again after the "HYPE" of approval sends the stock up to $7, $8, $10. Nobody really knows how high it can go. Just look at ARNA going from $3.20 up over $10.
I think the shorts are sitting back relaxing taking all this in with a smile on their face. I am not short with 16,500 shares but if this stock goes all the way up to April 20th without FDA approval, I will seriously think about selling and waiting for the "BEAR RAID" that everyone knows will come in the final week sometime. Just debating on whether it is worth $10,000 ( about 60 cents on a "BEAR RAID) up to $$20,000 if the "BEAR RAID is $1.20-$1.25. I could just sit back and wait for approval and hope for $8-$10 after approval and sell. You know the stock will settle back down a week or so after the "HYPE" of approval. Then, I could buy it back for $2.00-$2.50 cheaper and wait for European approval and product launch in late 3rd quarter or early 4th quarter.
Over 44 million ARNA shorts got a black eye from stock appreciation from $3 to $9.03 (Jan 1, 2013).
Another 10 million shorts have been added and driven the stock to $8.64, as of today...Methinks their
in for a second black eye, very shortly when the DEA finalizes and the EU approves, IMHO. I don't
think the shorts are smiling,at all....Today we saw Scottrade bump margin requirements 10% to assist
the shorts in covering and the hedge funds....Doesn't seem to have had any effect...
I like NAVB and hold a ton in my 401k. Will day trade it when it breaks $4.50/share.
Sentiment: Strong Buy
Cardinal is ready to sell LS the day after approval. Where are you getting a late 3rd qtr product launch???? This isn't ARNA which has no product to sell yet until DEA approval. NAVB will not have REMS like VVUS or DEA like ARNA, the will be able to start selling LS immeidately to an established market. ARNA and VVUS are severely overprices and NAVB is severly underpriced. Short will be screwed in the long run. Why don't you just cut the worry and hold your share another year? Then you will have $20 plus in price and none of the drama.
Thats what so many overlook; Cardinal is ready and so is the drug. I dont think sales will explode initially, but they will start quickly. The shorts only arguement at that point will be that sales wont be near the projections. My problem is I have uses for some of the money that cant wait another year! You know the old saying, theres a thousand reasons to sell, only one to buy.