Wall Street sharks are finding mygn short as easy preys. 38 million short share, multiple upgrade, law suit settled, grow profit and revenue, do i need to say more?
the huge short shares put a strong support for any potential fall on share prices. without any negative news to hammer price down, shorts have to cover eventually. The more they wait, the loss they will face. I am waiting for the days when they are jamming up the exit.
Ignore all those analysts downgrade and comments as they do not understand myriad business. Gene test are growing rapidly and myriad has edges over all other competitors. Read myriad earning report and listen their conference call, their Business and profit are picking up and grow fast, especially in Europe. There is nothing wrong about the company and shares are cheap compared with their historical high. Remember, revenue and profit are more than doubled in the past years but share price are still lagging. their net profit margin are over 20%. I am very confidence CMS will restored reimb rate on April 1. Short will be burned, just like green mountain coffee.
Tidal turned, now 95% of 38 mil short shares are deep in the water. Wall Street are smelling blood, but shorts are prethis time. What do you think GS, MS and other hedge fund managers will do? They will buy more shares first thing in the morning to have a feast on the shorts because they knew the price they pay tomorrow morning will be the lowest in the next two weeks.. I will not surprised to see multiple upgrade and positive commentaries tomorrow, probably in the afternoon. 35, 40, 45 or even 50 are not impossible in a week or two. Short are truly in panic mode. but I can't think any excuse they can bring out this time.
Most likely bull spread positions because of the equal size put at 20/22, It means someone best stock will not fall below 22
The recent dive of MYGN share price was solely caused by slash of 50% reimburse rate of BRCA1/2 (medical code 81211) by CMS. I believe this is a clerical error on CMS again. Based on CMS new fee schedule published at the end of Nov 2013, reimbursement for 81211 (Comprehensive BRACAnalysis test) is 1438,14 while for 81214 (single BRCA1) is listed at the same rate of 1438.14. One of them has to be wrong. This error occurred previously in October as well, but according to the 8K filed on October 1, 2013 with the SEC, it was confirmed at that time that the 2014 pricing for 81211 is 2795.09. Based on Myriad spokesman Ronald Rogers, company has contacted CMS and currently is waiting for the reply . A full IR statement will be released once the matter is clear.
I don't know which price is right however the clarification will come in the next few days. If CMS is wrong, MYGN will soar.