Several weeks ago I posted short interest as of 1/15/13. Few if any responded to that post and the reason was pretty obvious. All of us longs were very surprised to see the short iterest jump by over 300,000 shares. I, for one, had expected a meaningful decline. Afterall, from 1/3/13, when the price declined to $1.65 to 1/15/13, when the price increased to $2.19, the pps had increased by 33% on strong volume. Volume on 1/15 was 2.4million shares. As the company crosses the bridge from being a research organization to a bottom line oriented business, it will be more then a little interesting to see what transpires with this substantial short position. So far, they seem to be unmovable.
Awhile back I had taken a look at the short position. I am presently long as previously stated and have been averaging down for some time now. What I realized in addition to managements ineptitude regarding marketing and finance was what now seems obvious. That being that after a year and some time, present management seems content with 300 -/+ units in operation, after 1 plus years after approval. The short position seems to be that with those numbers they will be forced to offer a secondary offering to raise capital since the dumb idea of SELLING stock while its been depressed during the last quarters has now run its course, one of the possible senerios told to me by some present shorts, in addition to their complete lack of faith in present managements finacial savvy.
IMO I think managements last chance to salvage the present investors position is now. If they do not act now IMO we will be diluted to such an extent that it will take years to just recoup a position in the $5ps range, without a major catalyst. I'm presently $2 and mid change. With so much going on in the market this stock will remain in control of the traders and investors will be whipsawed with a SLOW upward trend as the machine has a place in the market.
Larger MM will not come to MELA til management can get this moving toward $5 ps and beyond. In short we need a proforma showing a couple thousand units ASAP and management actively working with insurance companies toward reimbusements, a PR firm that promotes the product, additional uses of product, etc etc. In short a proactive management team into marketing and finance. What did the Romans say about the Ides of March?
dwoods, I appreciate your insight as to what would be ideally needed to get this company up and running a successful enterprise. Talking to experienced traders/investors who do this everyday takes a lot of the guess work and speculation out of play. Maybe Gulfo is listening.
Let me build on what you've stated and say that if Dr. Gulfo creates a strong momentum in the first half of this year, then although admirable, I would still like another proven professional group to come in and take over the marketing and sales. Gulfo could manage the manufacturing, updates, and training, and work on getting additional FDA approval for GPs. This would be the best of both worlds, and would give me the confidence that the value of this device is finally being realized.
I could not agree with you more. I was a supporter of the commercialization phase roll out. However, I had expected that phase to begin sooner and to have much greater level of acceleration, especially in many of the marketing arenas that you have repeatedly alluded too. The hedge funds controling the pps continue to run sophisticated cash flow projections that continue to show an omgoing need for more equity infusions. What we need now is clear evidence showing marked improvement in these cash flow projections. We need real acceleration in placements.
Endo, I believe the MMs will always "run the stops" and force the price down so long as the pps is low. The nature of the business is not relevant here. Look at Citicorps behavior (charts) when they were below $5 and after they reversed split 10 to 1. The MMs went hunting elsewhere. Sam