All true. I talked to Rob today (IR at Biocryst), and he reminded me that stock action has nothing to do with the health or progress of the company. The Street will do (including Cramer) what the Street will do. Biocryst is on track with their programs. If you agree, there is no reason to sell your stock. Rob named to me the major institutional players, and he said he detects no apprehensions on their part.
I don't have an acct with Merrill, so I didn't see it. I was hoping you saw it.
If the tutes are lending out all those shares, they could create a squeeze if they wanted. Anyway, what explains the $2 fall in pps over the last week with no negative news?
It will be very telling to know what the ratio of short / long interest is today. Do people think that it will go far below what Merrill said? Did you read Merrill's analysis and how they reached their $8 target?
I hope it was not in vain, but i added 500 at 9.02.
Let me just throw this thought in there: If Cramer is connected with short buddies, can they be so incredibly greedy as to not cover some of their position when the stock falls (as it just did) in 3 days from over 10 to 9? In that case, there should be some bounce back today. We shall see.
Ziopharm (ZIOP) is high at 25.3% of float and increased by 2M shares in the last 2 weeks - but its pps was on a meteoric rise since Jan.
NewLink (NLNK) is at 32.9% of float, but not increasing, and its pps has nearly doubled since Jan.
Halozyme (HALO) is at 18.4% of float, increased over 1M shares in the last 2 weeks, and its pps doubled since Jan.
Our little puppies' pps has steadily eroded since Jan. and its shares short has gone way up.
It's not apparent that a large short presence causes pps erosion (HALO, ZIOP), but lookout if your company has low esteem on the street and the only time you go up is with news. This company should be steadily rising, with the prospects that it has. But no respect from Merrill.
Fidelity just recorded another analyst "sell" = McClean Capital, along with Jefferson and ValueInvestor. Not to mention Merrill. My head is spinning. This is turning into a self-fulfilling prophecy between downgrades and pps. Perfect if you're short.
If I recall correctly, didn't China start making Peramivir themselves. I would think this would be available in India. Doesn't matter if Biocryst gets paid for this; the publicity that the drug works on an emerging flu threat is worth gold.
A further thought about the rising short position: This has been rising for months now. Is it really possible that the shorts know more than anybody else? How can negative info be hidden for this long from everybody else? Its possible, but just not plausible.
What effect does a rising short interest like this actually have on the financial health of the company? They don't need to raise money right now. And the pps isn't rising but it isn't going below 10 either. Are shorts hoping the next financial report next week can talked down so that it appears the company is doing poorly? Over 11 million shares short?