Price action today makes that pretty obvious. I was long, but cut way back after seeing the pre-market drop. With the SpinCo not occurring until Q4, I doubt the market will be patient. Good chance a 10% pullback in the larger market happens in Q1 or Q2 as well. Best of luck to all who wish to weather the storm. I'm sure I'll be back, but probably not until Q3.
BABA's earnings are in the morning. So if YHOO runs from those, its run will be on Thursday.
Awful logic. The OI in calls is higher than it is in puts. So by your logic, the manipulation would occur to the upside.
In reality, the market will move based on how the news is perceived. If it's perceived as good, we go up. If it's perceived as bad, we go down. Believe it or not, it's really that simple.
Yeah, um, not sure if you've noticed but there are huge bets on both sides.
NWBO is #$%$. Not even slightly comparable to BLUE. Go away, loser.
Good luck, Christine! We're all hoping for the best. Hope Jett is starting to feel the effects of eteplirsen (or will soon).
Yeah, keep trying. You must be getting destroyed on your short.
Um, have you looked at the rest of the market? Not specific to Yahoo. Everything is getting clobbered because of the poor earnings from last night and this morning.
Actually, you're both right and you're both wrong. It can go either way. It depends on how the deal is structured. Some deals require a forced liquidation of existing shares, and the proceeds are then automatically applied to buy the new company. This happened with a few of the takeover's during the financial crisis in 2008. It's unusual and highly unlikely that it would occur to Yahoo if they were to sell themselves. Yahoo is in a position of power, whereas the companies in the 2008 crisis who were taken over were not.
ACAD did not have street cred at the time they were raising. In fact, most of the market seemed to think their redesigned P3 would fail. Their raise was received negatively. I'm not arguing how the street will perceive an SRPT raise prior to an FDA decision. I agree that it will likely be perceived negatively. I'm just arguing that it isn't indicative of anything, and that doing a raise would still be prudent.
[Will be a bad sign if they decide to raise money before late 2015 FDA decision, as that will indicate that they think that will be the highest stock price they can get for a couple of years.]
Raising after the stock has gone on a substantial run is a good idea if you need the money. Secondly, raising at that time wouldn't be indicative of anything other than recognizing nothing is guaranteed with the FDA. Most small- to mid-cap biotechs do raises after a major run when they need the funding. It's erroneous to think doing so means bad news is imminent. If that were the case, ACAD would be trading under $1 right now. Just before releasing P3 results a couple of years ago, they were raising money through an ATM when the stock was trading in the $2-$3 range. According to your logic, that would mean their P3 should have failed. This is just one of many examples. You raise at least some money after a big run and before any major decision. It's the smart, prudent thing to do. ALWAYS. I'd be annoyed if the company didn't. And I'm definitely not an apologist for management.
You'd have to be an ignoramus to sell Tuesday's earnings with Baba earnings coming up on Thursday. You think Baba earnings won't effect Yahoo's? They will, and Baba's earnings will be huge.
When your announcement is two days away, there really isn't any need to make a pre-announcement. You're reading into things too much.