AVNR lost $37 million in market cap yesterday for $20 million of incremental debt which could translate into hundreds of millions of dollars. We'd have been better off if KK had taken a paper sack with $20 million in it and gone to La Jolla and thrown it off a cliff into the Pacific Ocean.
Give the shorts credit. They created the "Sky is Falling" scenario and some of you longs (and traders, of course) fell for it. With EU approval of N, US weekly pill count increases going though the roof and the company marching relentlessly towards breakeven, the shorts were in trouble. Then yesterday.
Hopefully sanity will return soon. Meanwhile congratulations to the shorts. Game well played.
Someone shorted a lot more shares. They picked yesterday because of the shortened trading day before the july 4th holiday. I wouldn't be surprised if the shorts coordinated their efforts for maximum effect.
There was almost $11.5 million dollars worth of trading on yesterday's half-session.
How much of that do you think was due to those you refer to as "you longs", which would mean people who are long who read this message board?
My guess is less than $500,000, probably much less.
Furthermore, to read this message board most people here are being led by the nose by Avanir's and Optinose's description of the product and the study, the description that does not mention how it stacks up to the firmly entrenched generic and non-generic competition
Most of the trading was done by 10:41 a.m.. My guess is one or more large traders saw this deal for the bad idea it is and either sold or shorted, accounting for most of the trading.
Ray, you sold your shares of the company at nearly $1 less than you could have made....your decision making is manifest and unimpressive. You also said they should not have conducted the agitation study or initiated the current phase test....wrong on both counts. You said N works on PBA but that is a different part of the brain (or circuitry) from agitation....wrong, again! Your record is far from stellar, Ray. So why would anyone in his or her right mind pay attention to your take on this deal? My only regret is that you will disappear about the time AVNR proves the deal was a huge success. We won't have an opportunity to hear your apology for misleading unsuspecting investors.