For an "attractive acquisition candidate" ONXX's share price behavior is difficult to understand. Who is doing all this selling? Especially, in the face of very positive analyst assessments of the company's key products, long-run price potential, and acquition attractiveness. Why is the market for ONXX so thin?--dumping a couple of thousand shares can drive the price way down.
John, I think these rather unpleasant swings down has a lot to do with secondary. Possible scenario: someone who participate in the secondary, shorts the stock now since he is getting it at more attractive price.
I'm not thrilled with these price movements, but it is pointless to rationalize day to day changes,-so I keep remining to myself that as long as fundamentals are sound we'll get our $100+...
And I think at this point there are more chances that ONXX will be buying something than other way around...
I agree with you. We should focus on the fundamentals and we will probably get over $100 this year if there is support for earlier line use of Kyprolis. Still, the post-secondary price behavior is disturbing, especially when one makes the comparison with similar recent offerings..
I forgot about the "Must Own Biotech for 2013." Let's hope that all of this is just random price movement or strategic manipulation and not selling by people who know something--although the volume of sellling does not seem to indicate the latter. Still, to be down over 2% on a day that the NBI is barely down is strange to say the least.
My guess is that expectation that company will need to effect leveraged acquisition quickly once the proceeds and full dilution of stock offering is realized so not to have 20-20% of company net worth in cash or may be more advantageous for hedge funds to flip offerring if put protected than hold. Would like to hear from the experts.