As biotechs began their significant decline in mid July smart shorts covered and this has supported the stock price: shorts cover and support the market in a decline, covering their position maybe at a loss but a smaller loss. Expect this trend to continue one more report, maybe two. When it doesn't bump back up after September, that will be the signal that even the shorts know to not press their former bet.
The entire market is weak and my bet is it will continue to be for 2-3 months. 8 might be optimistic! It is what it is--if we can't stand the heat we should be out of the kitchen. This dump is the false move before the share market doubles in the next year or two.
Candy, even if trials are required these are relatively brief and not as costly as you might think. That said, even I agree the company's press release smacked of childish behavior even to mention short position. What your fear should be (and I believe it is well-founded one) is to wake up one morning to an announcement of a large pharmaceutical company partnering for development of any one of a number of products in the pipeline. For now that cat is still "in" the bag…to use your term… But it might not be for long.
Of course it's shorted and naked shorted; it's inevitable. Every stock is--less on a real exchange than our old one but happens every day to every stock. Shorts are stuck and in a rut at this point and the cc and earnings gave them an excuse to dump even more. Shorts only short and will do it until they have to cover. It's free money for now!
Unfortunately it is a perfect storm. I expect the market to continue to dump for a month or two and MDXG will go with it--$9.72 will unfortunately look rich and we'll be staring at lower numbers before this is over unless we get a nice surprise announcement of some sort. We are part of the market and will go in sympathy but we just are falling from a lower perch than we otherwise might have.
I don't think it's a change of heart, I think it is a logical conclusion based on earnings and expectations of what's to come that is in the public domain. OWT's a pretty frank poster. That said, I'm of the mindset that Pete and others knows very well what it takes to bring value and he is taking steps to make that happen. The plain fact is the company should probably have double the revenues it already has and would've if the injectable was on the market: it continues to grow (sales % same according to conference call but $$ are much greater). That was Pete's follow up product plan. This isn't 'over' and probably hasn't done more than 'begin' at this point. I have said this before: each and every time the stock has dumped has been, retrospectively, a buying opportunity. I'm not buying because I have plenty, like diversity in my portfolio, and because the market looks like it could take a dump here for some time--maybe a long overdue scary one.
Home yes it is high growth but not regenerative medicine uber growth. Remember we were supposed to have AmnioFx which would've doubled our numbers at this point--imagine that. Sales in a docs office are so, so much easier than in a facility setting. Hospitals=committees, patience, time, and more meetings. Monarch; theCures Act is BS. All the regulations are the FDA's own making. They can do whatever they want and choose not to--look at what happened with sunscreens last year. It's just more regulations, funding, politics....
I think it's really pretty simple. Until new products, some known and some unknown, are offered for sale the company's earnings are more or less incrementally known/predictable at this point and are solid but not in the high growth realm. Stock is therefore sold until products are gearing up and that seems to be a while away though some announcements in Q3 are alluded to. It's a great hold for the long term, but I see no catalyst to buy----- hot-er money is bored and leaves for hot-er stocks.
Yes--solid but no growth surprise. Other catalysts in the pipeline in the coming quarters but my take is we dip here for a bit, unfortunately.
I think the only significant covering has been yesterday afternoon and this afternoon. Shorty buying in the face of weakness--exactly the way a short is supposed to operate. A very good sign. Good luck to the longs.
So glad you're here, drfega. Thanks for saving me. I will be sure to sell my mother load of shares to you right now. Hoping to close out before Friday closes? The pain is just beginning. It's a great sign you're here! See you on the other side of 13.....shortly....shortie..
Cardiac, ophthalmic....eventually spinal cord....I agree rent talking 50-100. Take a look at Celgene's acquisition yesterday....
Trading so nicely...ahh...the mid day pause that refreshes with a small side order of low volume decline. Will the escalator restart after, oh, 3:30? Or will it be an elevator?
Wow. Approaching escape velocity--crack 12 on a Monday and 13 on a Tuesday? I think this must be shorts covering in anticipation of earnings at month end...or is it something more...time will tell. Perfect confluence of events with float even more sequestered in those new mid cap funds.
My take: stock is VERY impressive/resilient these last few days. PR for earnings is one week earlier than similar announcement last year. My hope is the quarter is in the bag and the stock will hit new highs on better than expected results. Shorts know this and aren't going to short into this, particularly without volume. Look for the stock to pop tomorrow as a few shorts close out before the increased short interest numbers come out this weekend. If they haven't increased their short position by 2+ million the numbers are rubbish. "MHO"