Yeah I agree. I actually think they put this in place now because they expect great news later. The phase 2 trial will be very quick. This is not a cancer treatment. So I would bet they will have interim results just a few months into p2 which will start this year. So I think they wanted this in place to capitlize on the massive move on good news from that trial.
Anyway I hope that is the case. If they sell that much stock right now, in this market, the stock will probably go below $2. I hope they realize that. It would be beyond dumb. We'll see what they end up doing.
I think there is nothing sinister here.They want to go it alone and they were afraid to wait given global economic uncertainty.
BB is on the board and just bought 75m shares. They wouldn't have done that if they knew bad news was coming and they would know if bad news was coming.
The other thing to consider is stock prices do not reflect supply and demand. They reflect the average bids and offers of the member firms covering the stock. In other words the broker-dealers of ACAD want the stock price lower. Why? And notice the volume is fairly low. We aren't seeing 20m shares days but 2m. What does this all mean? I think it means good news is coming, not bad.
This stock was my worst performer for most of 2015 and now as the market implodes everywhere you look, CFRX is a shining star of stability. Got to love the markets lol.
So they want to go it alone, and the hot money is exiting stage left. The secondary was done now most likely because the world economy is on very shakey ground and they decided a bird in the hand..... BB is on the board, they would know if there was a problem and they wouldn't have bought 75m shares. Perhaps the broker-dealers are bringing it down into good news. That happens ALOT too.
BB is on the board. Would they buy 75M shares just prior to bad news? That would be pretty dumb. Are they dumb?
I will say that I have seen stocks do this just before buyouts before. But the whole market is imploding so I'm not sure we can hang our hats on that. But this does have that feel. Right now it looks like they are positioning the stock for a buyout at 45. Although if this keeps up it might be 40.
This is a ridiculous reason to not hold ACAD. Were you not aware that they had no earnings while you were long? Was this some sort of gigantic revelation to you?
The entire point of holding this stock is for future earnings. That's where all the risk and reward comes from. If we knew what they were making profit-wise the stock would already be trading there. The risk would be mostly gone and you'd be hoping for 3% instead of 300%.
Sorry shouldn't use MM's I know that's a dated term. Basically the broker-dealer set their prices to match the secondary pricing. Happens all the time. Alot of people have the mistaken notion that stock price is based on supply and demand, but that has nothing to do with it.
Secondaries are net neutral, especially for a stock that doesn't trade on earnings. So people selling this on this news are basically stupid. MM's moved the stock to 29 because that is what the price of the secondary was. They always do that to be able say, well anyone could get the stock for 29, see how fair we keep the markets? Meanwhile in a few weeks the stock will be trading higher than ever.
Nah just dosing. I actually think the chances of failure are small here. But the market disagrees. We'll find out who is right.
It's a shame because it's nice tech and a good idea. But mismanagement and delays have lead this company to ruin. It's going to take another pile of investors and better management to turn this around. Are you going to find enough investment money to give this company a second chance? Doubtful with oil prices so low.