First of all I hate cancer and hope they cure it. That said, it looks like someone made a big bluff to scare shorts into covering yesterday, which gives people with a $7 cost something cost basis to sell into now that lock up has expired?
Got that right. Gee I wonder why it waited 2 days before lock up to go up 25%. Absolute and thorough insider manipulation. As grumpy's sister pointed out, that' some coincidence. There are only a few investors that would buy like that into a lock-up expiration and those would be insiders, or other parties, with an already large position that plan on holding it for a couple years, or longer, or until it gets bought out.
They didn't want the selling from this lock up, which wil begin in earnest tomorrow, to trash this stock and take it below the $5 threshold. They are trying to mitigate the sell off - which will come. Even long termers will take some money off the table to diversify.
The funny thing is, let's watch the volume and see how the MM's deal with it.
It went up in the last 3 days (25%) on only 750,000 or less shares traded. It's got an 87 MILLION float!
So that strikes me as a pretty ridiculous move that was well orchestrated by a number of parties.
Almost SEC traceable for motive. I'm sure it's all legal technically, but it is definitely something that should be brought to the feds attention.
But the 53% can get away with and do stuff like that I guess, or can they?
So now we get the huge correction downward, surprise? Sometimes I feel like a minnow swimming with sharks. Big money can push smallcaps around for fun. I got this one right though, and was short at $10.96. It could have opened at $20 for all I knew.
I am a biotech investor and have no position in this company.
But... Be careful about lockups and selling. Everyone thought YELP would be the same way a month ago. In fact I bought PUTS expecting a huge sell off. Guess what? The stock went parabolic. No sell off. No sell off in earnest.