is buy on margin when news hits then sell at the peak and short the stock on the way down, making money both ways..
The short interest may be a reflection of the amount of shares bought on margin.
What do you think of my theory?
That is one risky move as it's hard to tell where the top is going to be, particularly with Biotech. And second, I doubt it with TSRX. Those on margin sold out on the downturn. I sold and bought back already but I didn't buy at the low today.
Currently TSRX only trades on AVG 1m shares a day or a 8million dollars, so a million dollars in trades one way or the other can really swing this stock. However, I think TSRX is a very safe trade at the moment. It's a safer and more effective drug than Vyoxx (1.2 billion in sales and losing patent) and the patent on the Cubicin combo which will not only accelerate bacteremia approval for TED (which is another billion dollar market) but can gain TED a lot of that market if Cubist does nothing which I really don't see happening as Cubicin is pretty much their only drug that makes them any money. Cubist needs to find a major drug to sell and fast if they want to keep the doors open and grow past 2017.
So you have a two billion dollar + established and growing market and TED fits right in both of those. Not a bad place to be...
Is there even a place for being long in a stock these days? Stocks like this shoot up with good PR's, getting longs all excited. The next thing you know, it's dropping like a rock right back to where it was. MM's manipulating the whole way. Kinda sucks.
With the naked shorting, dark pools etc., anything is possible. Ever since the SEC got into bed with the hedge funds and they did away with the "uptick rule," things have not been the same. The "uptick rule" kept the playing field level. (At least it helped.) Just my opinion.