It’s my guess that Lazard may be close to covering the large short position that they most probably created when they broke all the rules and allowed their analyst to know what the investment banking side of the business was doing. Thus, he gave the phony price target of $11.00.
As is normal, because of the huge fees they received, Lazard were most probably required to support the stock for a period of time. That’s most probably why the stock price took a while to drop. Of course, supporting the stock only required a limited amount of short covering, and at very little cost.
Once that period of support time expired, they needed to create a run on the stock to cover the remainder of their short position, and the government shutdown gave them the catalyst and the cover they required. Yesterday’s drop in Novavax’s stock price was not in sync with overall market conditions and was further proof of manipulation.
I believe that we are close to the end of this nonsense, and the price may well, slowly start to recover.
Well, whether it was Lazard that took us for the trading ride is pretty speculative, but whoever it was was in close alignment. It appears, though, that the short position did increase when the stock went up, by over 5 million shares from late july to september 1. This leaves me wondering whether the stock will sit for a bit while they cover that new short position.
I will say that when the final act of the recent trading around the capital raising is completed, the following move will be up. And it will probably go up with some assistance from our resident institutional traders.
Interesting theory but in actuality, while your post may have some truth (in which we may never know).
In reality, if your looked at the broader market the past two days, the YTD's biggest gainers were pretty much taken to the woodshed and beat. The biotech sector also got heavily whacked, so in essence it was a double-whammy on momentum plays and biotechs. Sometimes we split, sometimes we rally on both and this unfortunate time, we lost hard on both.
Everything biotech and momentum simply got whacked (XOMA, PCYC, ARIA (plus their bad news), PBYI, ZNGA, AUDC, the list numbers about 150-200 companies that were taken for a 10-20% drop.
Tesla, Netflix, etc.
Purely profit taking and the fear factor here. I would highly doubt Lazard being manipulative. While they do have the right to play both hands, sell the offer out and be bullish, getting caught purposely manipulating which results in monster SEC fines and securities fraud.
Pete: Unfortunately you hit the nail on the head. To hear these longs scream like Schultz: "I see nothing!" is disheartening. The truth does hurt. We were scammed by Lazard no two ways about it. Shorted to the cleaners really. Will Lazard be held accountable? No way. It's just business they say. The longs better hope they don't decide to rape this company. They are running this company despite the promise it holds. Erck is just the condom for these pricks. I got taken too for big dollars. Didn't see this scam coming. And you watch as Lazard allows the shares outstanding to keep the pps under 3.00 to blow away the calls on the 19th +4,000. No matter what the "news" from Portugal. So all you long cheerleaders: GFY.