A lot of people post that the shorts are going to get squeezed. Frankly, it has been along time since I have seen the "massive short squeeze" in any stock. It seems like the HFT trading, and algos work their magic and shorts never get burned. An example is that a stock will go short share restricted, and then shorts exit and there is not much positive momentum to the stock? How do they do it without moving up the stock?
I have been holding several Biotech stocks for the last couple of years, and all of them are getting hammered. Unfortunately I own ICPT much higher. Does anyone have a credible reason as to why the Biotechs are getting shorted into the ground? 70% of my BIotech holdings are short shard restricted. When is the SEC going to stop the naked short selling by market makers? They are going to destroy the economy, while the SEC does nothing.
Go to sec.gov and check out their latest financial report, which was discussed in the conference call. If the drug is approved, which is expected, and they hook up with a good partner, I think it could eventually be a $30-40 stock. I think that they reported having 37mil in cash last q. The market cap seems way too low for a company with a proven drug in phase III, and with 37mil in cash. I am hoping that eventually it will play out. However, just like any biotech, the FDA could delay things, etc. Check out their website. It provides some good info.
According to all of the data, the drug works. It is extremely unlikely that the FDA would give them special designation if they did not like the data. The shorts have been brutal regarding Biotech stocks. There was a short attack against the company in late June/early July. The usual tactics were used (a letter questioning the drug and mgt, ambulance chaser law firms posting, etc). I am long the stock, and believe by 4th Q the stock will be much higher. I think the price is ridiculously low based upon the fact that drug in in phase 3, and reported close to 40 mil in cash during the last earnings call. However, it is small biotech and the animals shorting this can whipsaw it around.
"Oh, gee the stock is short share restricted". "It doesn't matter, I am a market maker and the SEC says I can do whatever I want". " But, isnt that kinda unfair to everyone else, and doesn't it destroy companies"? "Maybe, but the SEC says we can naked short because it adds liquidity" "Really, it is that easy"? "Yes, we can overload the stock with our positions, and dont have to come up with any money" "Wow, the SEC is sure good to market makers". "Yes, they dont have to follow normal rules"
It is amazing that these short parasites are able to bring this stock down to 1.40. They reported almost 40 mil in cash during last earnings report, and have a drug (which works) in phase 3. So, the drug is worth 20 mil? Really? This is so ridiculous, but so expected. Naked shorts are ruining the entire market, and the SEC does nothing. Oh gosh, I am a market maker, so I can naked short even though stocks are short share restricted. The SEC is disgusting.
Since early July this stock has been under a short attack. It started with some BS article, followed by short piling, and then the class action attorneys.
Wow! The company has approx 37 mil in cash, and a drug that has been proven effective in phase 3, and it is trading at a $75-80 mil market cap??? As long as the SEC allows the so called "market makers" to naked short stocks for extended periods, crazy stuff like this will continue to occur. The stock should be trading at 3-5 times where it is right here. I really hope that there is a buyout soon, and will fry the parasites.
Andrew Berens is the same analyst that was at FBR, who put a $99 target on this stock. After he leaves, FBR upgrades the stock. Now, he jumps over to Morgan Stanley and puts a $110 target on the stock. Clearly this guy has an agenda. It is ridiculous that anyone is paying any attention to him. The stock should move up nicely.