The one and only thing that would trigger a squeeze is significant positive news flow.
Any other squeeze rumors are just pumpers blowing smoke (ex: the vast majority of what you've read here the last 7 months). Has anything you've read here ever moved the stock price?
Read the regulatory filings. The SEC and FDA sites are where you find the most important info.
It would be nice if they let us US investors know if there will be an ADR listing for the spinoff.
Normally, I'd expect convertible arbitrage. Not sure in this case because NWBO is so expensive to borrow.
Fidelity is quoting 34% to borrow, with none available. Even if the convertible investors can borrow at half that rate, it's still big negative carry with the 5% yield on the bonds.
Unless cheap stable borrow was somehow arranged in advance, I suspect the convertibles are unhedged. There is no institution owning enough stock to be a single source of lending. The only possible source would seem to be Linda/Cognate/Toucan, which doesn't strike me as likely.
You already proved that you do not have the slightest understanding of passive investing. Not interested in providing remedial education for someone lacking basic investment knowledge.
Fidelity is quoting NWBO at 34% with no availability. 12% spread is pretty nice for them.
Fidelity could be loaning to anyone, does not have to be their retail customers.
Curious to know more details about what Fidelity program (name?) you are describing.
I have a margin account at Fidelity. No invitation was required. Nothing on the forms said anything about minimum position size.
Current Fidelity info on NWBO. Do you see anything different?
- hard to borrow
- zero shares available
- 34% rate if available (extremely costly to borrow)
No matter what you think of NWBO's prospects, it is a very expensive and risky stock to short.
13 cents * 1.8M = $235,934. I'm sure the institutional investors are quaking in their boots. :)
Per nasdaq site, short interest as of 7/31/14 = 1,814,881 shares.
The stock has already traded more than that today. There isn't anywhere near enough short interest for a squeeze to develop.
30 seconds of research could have saved you from making a silly post.
I've owned private equity investments directly (as employee of VC owned firm) and via private equity funds.
I understand the deal, just don't accept your spin interpretation.
I've read the 10-Q including the section on Cognate.
NWBO could have done a secondary offering instead. That would have given everyone a chance at discounted stock instead of just Related Parties.
So Related Party Transactions trading stock at a significant discount are now a positive?
If Linda was truly "all in", she could have bought newly issued shares at the market price, then pay Cognate in cash. Fewer shares issued = less dilution = other shareholders better off.
I haven't seen any post claiming the latest funding was not a smart deal. I did post a comparison to another deal the same day (PCLN) so folks could put the cost in perspective.
LOL. Not a short. Not a basher. Just hate PUMPERS.
I really appreciate it when you let me know that I'm interfering with PUMPING. Every TD is a pat on the back.
I seem to have struck a nerve, even though you still do not understand my agenda. Anti-PUMPER is not at all the same as BASHER.
I have only good wishes for NWBO and the real investors here. You will not see me post anything (positive or negative) about its products or trials.
My contempt is for PUMPERS of NWBO.
Today's tally so far:
- Multiple instances of insults and name-calling.
- Many PUMPER accounts acting together
- A couple of AF call outs
- A couple of rants about shorts (forgot this on my list, but another typical PUMPER behavior)
- One silly JAZZ/ALXN pump
This is exactly why I posted the list of how to distinguish PUMPER posts from real investor posts.
This is actually pretty expensive funding if you compare it to other recent convertible deals. That's not surprising for a small and risky company.
NWBO: 3 yrs, 5% interest, 10% conversion premium
PCLN: 7 yrs, 0.90% interest, 60% conversion premium
NWBO deserves credit for getting a deal done that avoids immediate dilution.
The most interesting part is the deal sweetener: "The investors in the Notes will have the right, exercisable for three months, to purchase up to an additional 30% of the aggregate principal amount of the Notes on the same terms and conditions. "
- Does that imply that the private party (presumably with excellent info) expects an event in the next 90 days?
- If there is positive news, they buy additional convertibles that may already be in the money.
- If there is negative news, presumably most of the deal proceeds are still on the balance sheet. They can exert pressure to conserve cash so they get repaid.
How to tell a PUMPER post from a real investor post.
Characteristics of investors:
- diversified rather than solely focusing on one stock
- seeking real information, analysis, discussion
Characteristics of PUMPER posts:
- often resorting to petty insults and name-calling
- post on one stock only
- use many accounts to try to appear important
- call outs of other users, including those not present (ex: "Hey AF")
- endless comparisons to the most successful firms (ex: JAZZ, ALXN)
- constant flood of short term predictions
The 10-Q link from yahoo is a truncated version. Investors should read the full version, linkable via NASDAQ site.
" Our management and our independent auditors have identified internal control deficiencies, which our management and our independent auditor believe constitute material weaknesses.
During the quarter ended June30, 2014, as we had in connection with the preparation of our financial statements for the year ended December 31, 2013, and prior years, our management and our independent auditor identified certain internal control deficiencies that, in the aggregate, represent material weaknesses, including:
• insufficient segregation of duties and oversight of work performed in our finance and accounting function due to limited personnel; and
• lack of controls in place to ensure that all material transactions and developments impacting the financial statements are reflected.