What an incredible short squeeze. Seems that this stock was selling for $2 last Wednesday -- now over $45, and stopped for yet another limit up pause.
It could put a little pressure on other biotech shorts as the short seller for that company are no doubt in REAL trouble for their entire portfolio. While most have might have gotten out, but we all know how pig headed most of them can be, and not all would have gotten out -- thinking that the stock would just go back down. After several days, doesn't appear likely, and that could have an affect on other potential squeeze possibilities..... like SGYP after they announce close of trial at the end of the month. (hopefully)
anyone gets too excited about the stock turning green, a large number of stocks in the biotech index seems to be green. There are better sectors to short right now, and even though the price probably WAS on track to revisit recent lows, shorts now have good reasons to abandon this sector for greener pastures. If there is a rate hike, there will be lots of greener pastures out there for shorts -- with much higher returns than biotech. If we are lucky, we may not dip below 6 again.
that the stock is going up is that several millions shares were shorted on the presumption that yesterday's IRWD P3 results would cause a large volume sell off of SGYP shares, allowing the shorts to unwind their positions. Since that did not happen, the problem that they have now is that there is no potential large volume event until January. Slow daily climb will be in the works for the next 30-45 days. It will be impossible to unwind that 30 million share short position without driving up the share price more than a couple of dollars.
January should scare the daylights out of any sane short.... emphasis on the word sane. The shorts never seem to go away completely until buyout is imminent. Can't really blame them in these market conditions because it was a good try for the shorts to make money -- but it will be nice to cross 10 again!
at least we know why SGYP so heavily shorted recently -- there was an large expectation that the IRWD results would be so good that they would bury SGYP -- but they were probably nowhere near as "robust" as expected. IRWD is up just 3 cents on low volume at 12:11 PM -- not a good sign for them for a "positive" phase 3 result.
Democrats really seem to have it in for the biotech's lately. Yesterdays Pacific treaty on the length of time that biotech similar drugs are protected was lowered from 12 to 8 yrs. While it does not affect internal US 12 yr protection, public pressure may affect the protection times. Not much green in biotech land today.... and this is no doubt the reason.
that someone in the Democratic National Party knew, and shorted the biotech sector, prior to Hillary's biotech position. It is so ridiculous to assume that a bill could pass congress that says that the biotech's would be unable to deduct advertising as a business expense? good headline, stupid idea -- unless there was another agenda.
While the entire market has been slaughtered, the bio sector seemed to be heavily shorted just before Hillary's speech -- or is that just my imagination? Good way to build political coffers for next year's election.
If Paulson decided to exit, there would be form 4's to file as he is a more than 5% owner -- no matter how many shares that he sold. No one can fabricate that.
As always, volume before price. Price should trend up the next 30 days as I think the phase 3 results on IBS-C due some time in October. Options for October are suggesting a much higher price by the third Friday in October.