Whenever you have massive damage done to a stock price it takes time to repair it. Add to that the fact this is a holiday week and sellers may have a slight advantage.
A good possibility. It did close strong yesterday with hardly any EOD profit taking so some traders could have jumped in late to play a gap up in the morning. Probably not a bad bet given all the PM action the last few days.
That didn't sound out the way I intended since I was not trying to imply desperation. I just don't see retail investors who held through the bottom below $4 all of the sudden saying "gee, why don't I get out now at 6.50"
The buying doesn't surprise me but the selling does. I doubt this many retail investors are up at this hour desperately trying to get out of the stock.
Why not? They should know the FDA will allow just about any AD drug to keep going forward as long as it shows the slightest chance of being better than SOC. Did shorts actually expect the FDA to forbid progressing to a pivotal trial? I really don't understand what shorts saw today (assuming it was them) that required covering in such a panicked fashion.
I've seen plenty of short related collapses but the shorts always had a killer ace in the hole (bad accounting irregularity, etc) and the post collapse trading/short covering was predictable. Here on good news we have a collapse of epic proportions and instead of covering around $5 or $4 it appears that the shorts stupidly kept dumping more as if they thought it was headed for $1 or BK. You could see them spike it down in the am, pop it, then come back for a bear raid at 1pm. Didn't look like long-caused action at all. Then, on a good but not "stunningly unexpected" PR saying the FDA approves of them going ahead with a pivotal trial someone decides to buy tens of millions of shares as if in a panic (the shorts covering? institutions going long?) If it's the shorts covering then who is the seller willing to part with so many shares below $6 today?? There are no tutes that even own half of what traded today. Were there that many small longs wanting out today regardless of today's good news? If it was tutes coming in to load up then who was selling? Was the short REALLY shorting tens of millions more shares today thinking this buying will pass it it keeps going down?? And why the huge AH and PM volumes on days with no news? Totally inexplicable. I wish I new a hedge fund mgr that could explain what is really going on.
(hat tip to bebopagogo, see his post # 36759 on IH)
or go straight to the abstract, replace the DOT's
When shorts are bashing 24/7 they're trying to cover without driving the price up. Only an idiot would bash so they could short more at a lower price.
As each day goes by the number of basher-affected retail longs still in the stock decreases leaving rock solid well informed investors. To me the bashing is an obvious indicator of covering (although it may be well hidden). Nobody bashes so they can short at a lower price.
If persistent naked shorting is going on and is more than just transient noise from MM's then
you should see "fails to deliver" at a high level and possibly increasing over time. The SEC
makes public archive files showing the fails. Remove the DOT's below and search for AVXL. Of course
the big guys who rig this game against the small investor make sure you can only get data
that's about a month old but it still can be useful if a long term period of manipulation appears
to be going on.
tend to be longer term. He was on CNBC yesterday with a new toy to play with, MNK (acquirer of QCOR). Man what a negative PR blitz he started after that appearance. At least 6 bogus law firms immediately announce "investigations" of the company but specifics are never given. Between these bogus legal announcements, replays of the accusations on TheStreet and CNBC constantly covering Left's attacks, the top of the news page for MNK is going to be filled with negative headlines for weeks, scaring off most new buyers.
I wonder how many thousands of guys just like that there are that don't post on message boards that sold. I live in a heavy R&D area (Research Triangle Park, NC) and word of this stock spread like wildfire here back in Aug and Sept. There's no telling how many retail guys piled into this to get rich.
I agree with the margin theory. It magnified the volume of the buying on the way up and now the selling on the way down. The company's actions, board members, distinguished scientists, lack of shady pp stock deals, lack of personal stock selling by CEO all tell me this company is legit. If they were a fraud they would have reported fake numbers on Nov 7 showing stat sig improvements on all cog measures. I can find no other reason for this selling other than margin calls. None of the hit pieces call into question the drug or the company as it exists today.
Sometimes he likes to soft bash by saying things like "it's too early" or "too risky" when some set-up caller calls in during the lightening round. He was hilarious with QCOR (profitable one product company). While his friends were short he said it was "too complicated" for him to recommend. Later after MNK (many products) bought them out somehow the "complexity" disappeared and he liked MNK.
Good for you! this will pass. Attacks just like this happened every couple of months with QCOR and in the end shorts lost their #$%$. Same slam jobs by TheStreet (F_stein), and many more than this. From a negative PR perspective this is mild compared to what they do if there actually is something smelly in a company report.
I feared this would happen. The only thing I'm surprised at is that there is only 1 negative article on top of the PR. I would have thought 3 or 4 by now. Maybe there saving some for lunch. Fake firms starting the stock at "sell" ratings will probably be next. Still waiting on Citron to pile on. They like to appear more thoughtfull and less knee-jerk so they may wait till tomorrow or Wed.
It was deliberately posted after the stock had run well above $10 this morning so his pals like Martin could average up before the slam. The timing was not hap-hazard.