to unravel without huge losses. So what gives. Here's my take. Hedge funds talk and often act in unisson. One of the most succesfull hedge funds is Renaissance Technologies (RT), with Co-CEO Sir Fitzhugh Brown who is married to Ms. Hamburg of the FDA. RT is successful not because of their big cap holdings but because of all the little homeruns they hit (inside information - its how its done on the street, ask Cramer). So when MNKD recieved last CRL, RT was short and profited immensly. Nice call. Also illegal, but who's watching? Apparently RT is still short, along with many hedgies, who trust Sir Fitzhugh Brown knows something. What could that be? If his firm is still short, I contend that his and Ms. Hamburg's financial welfare depend on another CRL for MNKD. Some chicken shirt phony balony reason to stretch MNKD out another two to three years. Maybe Al Mann will run out of money, maybe he will die, maybe he will just give up; who knows. There are powerfiul forces at work here, namely big pharma with much to lose with such a game changing approach to diabetes. And of course there is the run of the mill incestuous corruption of DC. Don't you just love it. So what to do. We need to know if RT is short MNKD. We need to notify SEC. We need to notify competent congressional members. If you know any , please let me know. Approval is months off - we have time.
Peter Fitzhugh Brown is the son of the man who invented money market funds. Unless you know something we don't, there is no need to refer to him as sir. Why would the SEC investigate one of the president's appointments? Please direct us to your source for Renaissance holding a short position prior to the last CRL.
I agree the relationship of the single most influential person in the drug approval process to a hedge fund manager which "invests" in biotech/ pharmaceutical stocks is a blatant conflict of interest. It is simply another example of corruption and poor vetting on the current administration. Let's hope RT and Hamburg see the potential of approving Afrezza and get greedy.
Following research on the subject of shorting strategies, the following information should be noted and is quoted from a white paper done by personnel at Ohio State University and Rutgers University.
Quote: "Recent evidence suggests that many short sellers cover their positions very rapidly. For example, Diether (2008) finds that almost half the securities lending contracts they study are closed out in two weeks (the median contract length is 11 trading days)."
Quote: "The notion that short sellers focus on short term trading strategies is consistent with our finding that short sales represent on average 23.9% of NYSE and 31.3% of Nasdaq (National Market) reported share volume."
Quote: "we also have traders that use short sales to hedge a long position in the same stock"
Quote: "short sellers act as voluntary liquidity providers... short sellers step in and trade when there is a significant and temporary buy-order imbalance in the market. As the buying pressure subsides, prices should revert to fundamental value and the short sellers can cover their positions at a profit."
In otherwords, short sellers are able to temporaily short the stock at higher prices during peak periods of institutional and hedge fund buying that we see occuring with MNKD's stock several times a month. Then the shorters buy back the shares at lower prices that occur in a week or two, when less institutional and/or hedge fund buying is occurring. If the stock's price starts a continuous or too large of a rise without normal pullbacks, then the short sellers can use tactics such as having negative articles published to create short term pullbacks in the stock price.
Remember, the fact that the stock is highly shorted is not indicative that in the long run major institutions and hedge funds believe Afrezza will not be approved in March or April of 2014. Due to the cost of shortening, as indicated by studies, most shortening is done to secure very quick gains within 1-2 wks.
I can only find where RT is long on MNKD. I'm not sure what you are looking at but Dr. Hamburg had to sell many of her holdings before she took the top post at the FDA. In addition, her husband also had to distance himself from pharmaceutical holdings. That is closely monitored and I'm sure the SEC is keeping a watchful eye on any activities that the couple could be engaged in. They certainly don't want to end up like that China man who is in the klink for five years due to his insider trading while working as a chemist for the FDA. Besides, they don't need the money and she works heavily as a volunteer scientist.
I did see the immense holdings that the cap firms have in MNKD and it is definitely reassuring to see that money invested in the company along with Al's commitment. I'm just a guppie on this food chain but I believe as much as they do. Maybe I can make some more dough and re-invest for the next big medical breakthrough.
After all the #$%$ that keeps hitting the fan with this administration, you trust the govt? It's rampant incompetence everywhere you look because no one is ever held accountable. Once in, you've got your cushy govt job for life. The old 'trust but verify' I believe is in order. I would like assurances from the SEC that they are on top of this. Thanks for your input.
I don't think companies disclose any of their short positions but I think it would be great if they did.
Search for "A 13F Filing Disclosing Short Positions?" and you'll find a seeking alpha article that discusses one company that actually filed a short position. Seems odd since they are not required to do so.