Anything under 10.00 and it's as good as GOLD for the ones who shorted at 10 or higher...
The holders of 27 Million Short shares says one of two things about this stock and it's product:
1) There's a BETTER competitive product out there that we don't know about...yet.
2) Somebody is actively taking shares OFF the market, without extending their risk level by owning both sides of the game, in boxed hedged accounts. But why?
As for the latter, as I have stated previously on this message board, I see the opportunity for the holder of the boxed hedge to accumulate a massive voting block of shares that can move the stock only in the direction of their choosing. In the case of an unsolicited buyout offer resulting in a proxy fight, they have huge leverage in deciding the price and the ultimate ownership.
As far as Im concerned there can only be two groups of people who have the motive (and the money to pull off a trade of this magnitude), and that would be large hedge funds acting in unison to guarantee their profit in a sale to Big Pharma. If the product proves successful? They'll be right in there covering their shorts using algo's to prevent a massive rise on the first 80% and then simply paying up without reservations to cover the remaining 20% of their short position while a much larger move in share price unfolds. Additionally this allows them HUGE profit if and when a buyout comes as they have the opportunity to dictate a reasonable buyout price as opposed to having the buyout price dictated to them.
The Flip side is big pharma's hired proxies who have been given a mandate to HOLD down shareprice making their ultimate offer look attractive by comparison.
Sonoran, you sound bitter, angry that this fellow has made more money than you in EXAS. Shouldn't you be happy for him and the success he's had betting on your favorite toad?
Sentiment: Strong Sell
That sounds like a good strategy Lynnxx. I commend your vision and I welcome to the EXAS board where all points of view are of benefit despite what might be implied by the board "trolls" (bullies).
So good luck with your MNKD. I too have followed that company through it's ups and down and it's never looked better. I know your strategy will be a positive experience for you regardless of how high EXAS goes from here, MNKD will undoubtedly go higher - IF they get FDA approval (and I think that's a given for both companies). As to the revenue generating capabilities of each, the statistics are in, and the incidence of diabetes is unfortunately astronomical and growing at an alarming rate. So much so in fact, that it dwarfs even that of colo-rectal cancer.
Best of luck Lynxx and please do keep posting. We need alternative viewpoints around here -badly.
Indeed. The spambot clown lives in a permanent hell of their own choosing. No one needs to feel sorry for them. LOLOLOL! (at you)
Yes, I can be juvenile but you should see the things I've had to put up with.To clarify my veiw, the acquirer will likely only be purchasing the position (both sides) in exchange for the voting rights held within the long side of the hedge. Once the buyout occurs and a price has been set, the two sides will be swapped out of existence. In the meantime the hedger makes 2.7% overnight bank money on the funds brought into his account by the short - cancelling out his cost of carrying the long side. In addition, riskless option strategies can be employed from both sides simultaneously for additional income. In the end, the hedger can also make up to 10% in facilitating the deal- agreed up front to paid by the acquiring entity -all at no risk to the hedger and all while providing anonymity to the acquiring company.
This is not exactly how it will go down here. Nobody has a crystal ball, but I can assure you there are at least SOME players currently engaged in the aforementioned strategy re: EXAS
Sentiment: Strong Buy
KC may be "no dummy" but he's not superman either. The right entity need only lobby and acquire 50.01% of the voting shares from the other large holders and the company must then accept the offer or a competing offer with or without KCs approval. With a mere 134k shares, Conroy hasn't the voting wherewith to prevent any 51% agreement made between the mutual and hedge fund stake holders. These are the #$%$ who represent any serious threat to this stock ever rising past 30.00 per share. Besides, with the poison pill in place, he and his cronies will get bought of in the most lucrative of terms and probably remain onboard to run the new 'division'.
Not exactly. To be truthful, my latest short I was forced to cover at a .33c loss. Live to fight another day if you catch my drift. I'll be back to short again as there are still plenty of funds in my account from previous wins. I'll let you know when Im short again - probably sometime after we test 17.00 tomorrow. Puke Stevens was right to get in at 16.50 but somebody faded his call for the squeeze. Poor slob. Glad it wasn't me. But mark my words, I will be shorting as soon as the current squeeze ends.
Im not claiming to KNOW this, but what I've witnessed (not participated in but witnessed) in the past is the actual payment by an acquiring entity to the holder of 3rd party voting shares. Since there is no such thing as a "negative vote" to correspond to the short shares, then "votes" can be acquired with a boxed hedge that makes no money on the underlying one way or the other - but the VOTES have value if you own enough of them! So what harm can come to an entity or entities who employ this method of holding boxed hedges to be "sold" to the highest bidder once a proxy fight evolves?
If enough shares are garnered by a potential acquirer in favor or against a buyout before the final verdict, then it's a "no contest" when the showdown at the OK Coral commences- he's got the votes he needs to guarantee his buyout price (or block as the case may be). In exchange for acting as a holders of votes, a 3rd party "proxy" firm takes a standard 10% fee of the amount held.
So lets say just 12 of the 24 million short shares were in fact proxy holders, at 10.00 (say) average price per share they represent 120 Million Dollars. If their fee is 10% they recieve 12 million dollars for putting on a riskless trade where the cost of carrying their long side of the hedge is offset to within 1/2 % by the infusion of cash into their short account - they lose a half percent on the 10% in a risk free trade.
This kind of arb is ONLY reasonable when there is a relative amount of certainty that a buyout WILL occur.
I think that this has certainly been the case ever since the AdCom.
Sentiment: Strong Buy
Quaffer, do as the lady says and go have another beer - with your "popcorn" lol.
It's clearly over your head. Their strategy is far from the simplistic "win or lose" "black and white" scenario you make it out to be. If everyone were as naive as you, we would all be broke.
Wax, you're too smart for your own good. Do you actually believe that Wall St analysts are honest?
They are CLEARLY acting at the behest of a large client. One way or another.
Sentiment: Strong Buy
And who could blame them? With such a low float this thing could actually get half way to their $22.00 target subsequently turning many of them into melted cheese. lol! Good luck fellas!
This? Coming from the King-O_thePumptards?
Get serious Msteve. You callin this clown a pumper is like Allen Stanford calling Bernie Madoff and Ponzi Thief LOL...
Go back and READ quaffer. My god your comprehension is poor. The "entity" is actually multiple entities under the umbrella of a single benefactor. These accounts are called "PROXIE" accounts for a reason. Go do your homework son and then give us a report.
Once again, you've displayed your arrogance, ignorance and stupidity. A boxed hedge has multiple uses, not just a method for tax deferment. READ! DO YOUR HOMEWORK - and then you might think about opening that fat yapper of yours! Oh, and GET A NEW SCRIPT, yours is founded upon IGNORANCE!
For You NON believers, check out the SEC filings of
GILDER GAGNON HOWE & CO. LLC of NEW YORK NY
, a broker-dealer,futures commission merchant
They are described as:
Advisor Fees/Compensation: Percentage of assets under management,Commissions,INTEREST ON CASH POSITIONS OF OPEN SHORT STOCK in EXAS
Amount of client funds and securities: $317,760,000.00
Total Number of Clients: 2
Amount of client funds and securities by related persons: 317,760,000
Total Number of clients from related persons: 2