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Merrimack Pharmaceuticals, Inc. Message Board

  • theprincipal49 theprincipal49 Jul 12, 2013 9:09 AM Flag

    Why is pre-market just $5.09 with 1.3 million shares traded?

    Shouldn't be higher now that we know the shares are being sold to the public at $5? Shouldn't that be the floor?

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    • Very simple...

      JP Morgan has 5 million shares of the new issue to dump and they want them gone as fast as possible for as much as possible. Had they let the price go up they would have sold far less shares.

      They paid $4.70 each for them as they got an underwriter fee of .30 per share off the $5 price.

      I guess they figured .40 cents per share was about all the suckers would pay for it with any meaningful volume.

      Now they have some extra breathing room to get rid of the rest if they need it. They will control the PPS up and down to generate volume until they unload the rest. I would not be surprised to see a 10 million share volume today.

    • the floor is zero - yet we might see $5.50 today

 
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