“...The shorts are now fighting for their lives,” said Stephen Brozak, president of analyst WBB Securities LLC, an analysis firm that holds Navidea stock.
Some of the stock slump might be due to short-term investors who bought in anticipation of the drug’s approval and sold on the news instead of waiting for sales to ramp up, said Andrew McDonald, founding partner of LifeSci Advisors, an equity research and advisory firm that has Navidea as a client.
“As the stock market has recovered here, we’ve seen a greater influence of the retail investors on stock prices,” McDonald said.
“Now when I see stock prices move kind of wildly, I’ve got to go check Twitter to see what people are saying,” he said. “It’s really a crazy phenomenon.”
A lot of confusing information seems to be flying around the Internet, including rumors that the money-losing company will soon dilute its shares by issuing more stock or that Navidea will now need cash to pay for sales and marketing.
“I don’t think people realize that’s not the case,” McDonald said...."
"... After revenue-sharing, Navidea expects up to 40 percent of that to end up in its earnings before depreciation, interest and taxes."
"...As of the end of February, it was the most-shorted stock on the Amex exchange, according to a Wall Street Journal compilation of federally required reports on short positions..."