It's not a "death wish" they really have an MO. When the good news comes out - They short more. Why? Because they know that with most biotech everything takes so long and costs so more than anyone expects. As a rule they will win on this strategy. If they do this with 10 stocks, they'll win on 7 or 8, maybr 9 so they play their games. Usually they count on covering their shorts on future stock offerings to support the company's burn rate while they are waiting for, more trials, expanded trials, new "arms" of trials, FDA delays, peer review, etc, etc.
I think they lose big this time. My reasons:
First, this is a nutriceutical not a pharmaceutical, the FDA has already said they'll have minimal impact on the process, at least until Star partners up with a large pharmaceutical company for some specific disease-related drug(s) but the delays there will only affect that specific project and would be funded by the partner.
Second, Anatabine is already on the market and sales are growing at an astonishing rate.
Third, many medical/healthcare professionals are already aware of Anatabine (Anatabloc) and are taking it personally, or recommending it for family members. They already know what the impact is without waiting for years of trials.
Fouth.The Safety issue as just been resolved with the Hopkins report. Some doctors may now start recommending Anatabloc for specific medical ailments.
Fifth, Monday’s news that "HFL Sport Science batch tested Anatabloc® for the presence of a wide range of more than 147 prohibited substances using HFL's ISO17025 accredited nutritional supplement screens. The testing found Anatabloc® to contain no banned substances". This news, buried in the Isner announcement, is the imprimatur Star needed to get into EVERY locker room in the country – NFL, NBA, MLB, NHL, NCAA, High Schools, etc
Sixth, Star will be profitable THIS YEAR and will likely need NO FURTHER FINANCING, other than option exercises on already issued grants.
There are many other reasons, like the ultimate monetizing of the valuable tobacco asset estate, but these other things will be more than adequate to drive the stock to substantial double digits.
The way things work is that someone funds a study. They want it to be scientifically valid so hire scientists from places like John Hopkins (example Dr. Paul Ladenson as consultant ) to make sure that the science will stand up to peer review and be repeatable. They also register the trial with the government on the clinicalTrials . gov website. This trial is number NCT01551498. This must be done because they are using people. The hardest part is getting the patients which is why they have several sites that gather data. Each site is a doctors office or treatment facility of some kind where patients can sign up for the study and be monitored by applicable medical professionals.
Hopkins is running te study and provided preliminary results to Star. JH is getting ready for peer reviews by more of the worlds top scientists. The folks at JH would not go out on a limb like this unless this stuff is the real deal, something the big pharmas and their brokers dont want to hear about or have anyone else hear about it.