Actually all that is needed to get a massive run on IDIX right now is confirmation about the artifact. If IDIX can confirm it was indeed an artifact, we will have lift off. Management merely expressing confidence about the artifact was enough to send the stock back up after plummeting, and it sent it up even higher than the price it had reached previously. Bankruptcy will be the fate of those who are playing with fire by shorting IDIX if they ahve not covered before positive news comes.
shorts will be forced to cover on the arrival of any positive catalyst. for one thing, a lot of them will be getting margin calls. With some positive news or promising development, IDIX could easily go over 10 again by the end of this year. Shorts are counting on some news that creates fear and uncertainty in the near term. Recently they got this when we were told the FDA requested more information from IDIX and the stock plummeted in premarket trading. I think at this point positive news is more likely than negative; because there are a number of things that could go right for IDIX before the end of the year and right now this is like a coiled spring. When this stock runs, it will be unexpected, and a great deal of the move may be made premarket. Many shorts who have put too much of their account on the line to short IDIX will be wiped out then.
gil, my mistake. glad to hear you are long, as I think that will be the much more profitable position in the end.
unless Klarman has changed his investment philosophy, I find it highly unlikely he has done any selling. first you must consider the size of his stake in IDIX and the fact that he added on what others considered bad news rather than reducing. Then consider the fact that IDIX is, for him, a more speculative holding. He has explained that he does not take more speculative positions unless he expects massive gain from them. I don't think Klarman will begin unloading until IDIX is well into the double digits. But of course his holding time is much longer than most Yahoo message board posters who, from what I can tell, are almost all short term traders. I have no doubt Klarman will still be in IDIX when this is trading over 20; but I imagine only the smallest number of posters on this board will be along for the ride at that point. Most will either sell out of panic or out of impatience.