You are mistaken biggest downside moves occur on the last trading days of the year esp for very heavily shorted, small and illiquid stocks like SPPI. Just keep in mind though that Raj and Co may take advantage of this situation and take Spectrum Pvt using Spectrums cash and recently increased credit lines. Mgmt led LBO is a biggest threat for both longs and shorts. An offer of $15 will really hurt the shorts but will put a cieling on the losses for the shorts and likewise for the upside for the longs it will be a 50% premium but will still be a poor offer for longs.
"Last trading days of the year"? oh really, LOL? Ever heard of "The Santa Clause rally"? How about "The January Effect"? Did you know that microcaps usually tend to make their largest moves during a 40-day trading window period that usually ends @DEC/JAN?
As for LBO, not a chance, IMO. Raj succeeded with this first goal(getting the biotech from begin broke to $1 Billion in 10 years). He has a $5 BILLION in three-to-five year goal next....As long as they continue to make lots of ka-ching, the ball is always going to be in THEIR court, NOT Mr. Market's stubborn reluctance to appropriately valuate. They have no urgent need whatsoever to go private, nor accept any offers. Now THAT is called real leverage!