I don't often post on these boards, however I do follow them regularly as its very interesting to witness investor mentality and how it can change on the flip of a coin!
First off, I don't even purchase underlying securities. I only purchase and trade options. I currently hold 90 Sep 2013 4 dollar contracts. My father whom I assist investment wise has over 660 sep 13 5 dollar contracts!
I would not even consider option contracts if I was not positive this stock would move prior to the third week in September.
Lets not forget... The CEO came over last summer to management the up and coming approval as well as grow the company... This CEO has over 20 years experience growing not 1 but 2 different pharma companies from the low 100 mil mkt cap to over 1 billion market cap. He is not a newbie by any means..... I've said this before and I will say it again, if the CEO stipulates this drug will be on the market by the 4th quarter, it will! He is not about to lose his reputation, or his well saught after pay day... Those of us who truly understand financials will know this company will be a train wreck if they try to go it alone.... The ONLY way to bring value to share holders and meet the q 4 target is from a partnership. (This is if the company doesn't get bought out)
If this was your average run of the mil CEO, I would say he may be #$%$ enough to try and go it along (Greedy about grater profits down the road) However this guy is smart... He knows i twill be corporate suicide and is working on a sweet deal.
As far as trading, lets look at the obvious. Very low float for retail investors, most shares are held institutionally. Over the past month this stock has slowly depreciated in price. My thoughts, retail investors with cold feet were starting to sell allowing hedgies to sneak in and pick up cheap shares!
Now for today look at the BIG picture. Someone dumped 163K shares al most immediately. I bet it was a planned attack ...
Any CEO that allows 60% of the company to be owned by private investment firms and GSK isn't about to go at it alone. He can't even make that call when 60% of the company is owned by outside groups that will demand a partnership or buy out. It's just that simple.
I feel very strongly that we are being played very big today. The amount of shares purchased is one thing but the volume on the options is really something else. Normally the call option daily volume is around 100 contracts (10,000 shares) today so far we are over 5,000 (500,000) call options and not at the $2 level. Look and you will see that $3, $4, $5 plus June (in just a couple of weeks) July, Sept, Dec have been selling like hot cakes. Now this would be cheap to buy and dump, then pick up 100 times volume in call options. Remember that call options is betting that the stock price is going up, so what does really big money in the call options know?
Sentiment: Strong Buy
I agree with you 100%, however they dumped only 100,000 shares and the stops took out the rest. Now for me I have picked up some additional shares at what I feel is a very good price. Thanks to those with weak hands. Also I purchase about half of my account in options, that is where the real money is made and you are correct on your investment, from my point of view. The option trade is very high and someone dumped these to pick up the options on the CHEAP. So watch out everyone something is happening and we will see a very quick jump on news.
Sentiment: Strong Buy
To blow out everybody's stop losses and buy up shares CHEAP.
Now what is really important is the option trading! The second this stock dropped from the 163K dump, option trading went through the roof! Over 2700 call contracts have been purchased today as of 11:00am MTN standard time!
More impressive is over 67% were traded at BID! The sneak attack worked!! Retailers got scared, unloaded there options at the current bid in order to break out with some cash, meanwhile the big boys loaded up at ridiculously cheap shares. Thats what happened today.
Again, look at this company since approval, it has been surpressed from day one. I guarantee there is not one but a few hedgefund managers, working with the directors to make a killing. They know the directors came together to build this company up quickly and parter / and or sell while making a huge profit, and the hedgies have been slowly accumulating at stupid cheap prices since.
This company has a 96 mil market cap!!! The overhead from the sales of Zecuity is roughly 70 percent profit!!! Lets say 10 million sufferers use Zecurity once a week. that is 5200 dollars a year, or about 3K profit to the company. X that by 10 million and you have 300 million in revenue! Lets say the mkt cap for this company is worth 300MIL, well with the current shares amount (about 30,000) that puts us over 10 dollars a share...
Management has played this super smart, and the big boys in wall street whom they are working with are also about to make a flipping killing on this stock.
Current shares outstanding 30 mil* Sorry for the typo's, I wrote that quickly as I'm simultaneously looking after an 8 week old puppy who is running around the house!
I Just wanted to get the point across, that most of you seem to forget after seeing the " price manipulation "