That is why no one should trade stocks on headline earning release . Many stocks have traded and dropped lower or went higher on headline and then reversed course after investors were informed of the actual / adjusted true figure .
I think the company did a fine job in reporting on Friday so that some idiots don't rush and trade on headline
Most people on this board including the short sellers do not know that to bring a drug to the market cost the drug companies around $1.5 Billion dollars and 10 years . Currently most drug companies pipelines are empty and most of their drugs are coming off patent . That is why drug companies are buying biotech companies with drugs in Phase 1 which is not very promising but it takes 3 years just to get a drug to Phase one .
This company has drugs in Phase 2 and 3 . So the pipeline is very impressive and valuable and that is what the stock should be bought for the future and not next week . The value increases every day as demand for drugs in Phase 2 and , especially, Phase 3 in increasing . Look at deal with PFE . Do I need to say more .
Also wait for CC
Companies do Not disclose details very much on earning release . They save it for the CC . Lot of companies stocks that drop a little in AH on earning headline jump after the CC
The CEO has been constantly buying the stock and in fact he added shares few weeks ago around $13.50
He knows more about this company than any one of us otherwise he would not buy big chunks of the stock especially in just couple of weeks ago . He is a doctor himself and is very much involved.
So relax and enjoy the ride.
Also, I think the earning will be released closer to the close of After Hours trading which will create Hell for short sellers
Shorts are stubborn and do not admit being wrong that easily . All these nonsense about hedging is that "nonsense" . If you have 200 shares and short 100 shares to hedge , in reality you neutralized 100 shares unless you are a bond holder . Hedging is best done through puts or calls which make the best sense as your cost stay the same . I am waiting to see what short interest is tomorrow . I think it will be well over 50 Mil shares
I established a position in the stock . From what I see short sellers have been very active to drop the stock .
But why would any one short a healthy stock in the $4.00 range . I mean where could it go . If short sellers were smart they would go after stocks with weak fundamentals in a higher price range to make decent money with drop in the price .
To drop the price of a stock one has to sell shares . Short sellers not only short more but also buy shares on open market and sell them to the bid to kill the bid and take a small loss .
To me this hedge fund ( short seller ) is very stupid for 2 reasons :
1- When the secondary was bought very fast , they should have used it to cover .
2- When the analyst came out the other day and upgraded the stock to a buy and put a price target of $10.50 on it , short sellers shout have tried to cover instead of shorting more and knocking he stock .
Remember they , or any one , can drop a stock but if no one sells then they become the loser of all time
Trading patterns for the past couple of days suggested that short sellers were trying to drop the stock which they did but the problem was any time it was dropped to $13.85 or so the volume dried up as no one sold .
With short sellers increased activity on this message board it was clear they were going to drop this stock to get people to sell . Today was the day but soon the shorts learned again that no one is selling which is why the volume was so light and pathetic .
As I have said before short sellers are in trouble for following reasons :
1- The float is only 200 million shares and shares shorted is 49 million shares . Very scary
2- Short interest has constantly increased month over month because short sellers have no choice
except to short more to prevent the stock moving higher at a fast rate .
3- This is a biotech company with 5 clinical trials at late stages . any day a piece of news could come
out which will cause the stock to shoot way UP
4- The new Presentation will sure have positive effect on the stock .
5- There is no real sellers
there has been many attempts to drop the stock below $14.00 but no one sold and volume dropped to nothing . So today it was the day to really to take the stock down and create fear selling and take stop loss .
No one drops 1.5 mil shares in one minute and then with volume of 3 mil shares all of a sudden the Idiot seller has no more shares to sell .
What kind of Idiot would do that ?
You bet . When short sellers start posting lies and nonsense on a message boards, that is a clear indication they are scared . Why , you ask ? Investors on message boards hold relatively small positions and when a group goes after them that is the sign of fear .
I would be nervous too if my short position had grown from small position to 49 million shares while the stock has shot up from $5.50 to $14.00 . Losses can add up very quickly when each point up adds another $49.00 to their loss
The game is getting very dangerous because this is a biotech company with several clinical trials in 2nd & third phase and any news will cause the stock to skyrocket . Don't forget pharmas do Not have any drugs in their pipeline and are buying biotech companies with phase 2 & 3 .
This stock is worth at least $100.00 . Short sellers can post all lies and short more to drop the stock , bottom line is " We Are Not Selling "
That says short sellers not only are stupid but they are in " HELL ".
Every day short sellers drop the shares thinking that we panic and sell but soon they find out that is not the case .
The company has several important trials in phase 2 & 3 and we could be looking at $100.00 stock yet these Idiot short sellers want us to sell . Really ? Would any one sell something worth $100.00 for $15.00
First , the short interest have been going UP every month and now is at 49 Million Shares .
That is not shorting against the box . This is pure shorting . Short sellers have to tame the stock and prevent it from moving high . They use a trick which is they buy the stock in open market and turn around and sell them at the bid to kill the bid . They take a small loss but with 49 million shares , every point means additional $49 million dollars . But if shares are not available to buy in open market , short sellers have no choice but to short more to tame the stock and or drop it to get others to sell .
Take today for example . Someone dumped 400K shares and dropped the stock to $14.16 . Do you really think some one had to sell a lousy 400K shares in minutes ? That could be true if some fund had 6 or 7 mil shares but not 400K shares .
Also , it is the most stupid thing to short any stock against a long position unless you are a bond holder .
So suppose you have 200 shares at $14.00 and you short 100 shares at $15.00 . Mathematically, you basically neutralized 100 shares . Because if the stock goes up one point , you gain $200.00 on your long position but lose $100.00 on your short position with net gain of $100.00
Short sellers are " Toast " in this stock and at one point we will see a huge short covering .
This stock will go much much higher
I did a research and liked what this company is doing and where it is headed and established a 5K position .
The CEO was very clear about the mission on CNBC and looks like the products are in demand and more companies wanting to utilize this company products and technology are on the rise and company will announce them soon.
There is no doubt short sellers shorted more today to hold the stock down and with so many shares shorted already, they will be very active in the coming days/ week and will post trash and lies on this board .
I intend to add more as I was impressed with the CEO interview on CNBC
When hedge fund , Kingstown, today announced they added to their position , poor long holders cheered and pushed the stock higher in AH
The reality is that this hedge fund had already established a position of 5 Mil shares some long time ago at a lot higher price . If this hedge fund was smart , it would have sold the shares some where around $35 or $30
and not ride it down to $5.00 suffering a loss of $150 Mil Dollars and then buy another 5 mil shares around $7.00 to average down . The recent purchase has added to his loss by another $7 mil dollars .
Now the stock has to go to $17.00 for this hedge fund to break even .
That is Not a person or hedge fund I want to follow . A smart investor exit a position when a stock drops 20.0% or more and does not wait for the stock to drop 90.0% That is pure stupidity
The wording is standard but some on this board try to give it a positive spin . The filing also state that the fund may short the stock to protect its investment . Every filing state that the fund may work with the management .
More important is this fund already had 5 mil share and what price did they bought those shares before . My guess they paid a hefty price and so they are in the RED with substantial loss. They most likely bought more shares to average down . They must have bought the new 5 mil shares around $7.00 which means they are Losing money even on the new purchase .
Adding to losing investment is a very bad idea . Again the company is in Default and there is not a damn things any one can do . That is why Blue Mountain , a bondholder, shorted the stock to protect its investment
What is the big deal . Money managers buy and sell the stock later.
Chapman bought around 20 Mil shares around $8.00 and some people bought the stock based on that news and now the stock is $6.00 . The stock has to move on fundamentals . In this case fundamentals are worsening and you see stock moving lower. The company is in " Default " . Look it up and you see that means disaster waiting to happen . These are opportunistic funds and not real investors . Chapman Funds is now in the red by at least $40 Million Dollars . I bet you Chapman Funds is waiting for the stock to get above $7 to dump and get out
I first got in at $9.05 and just added 5K yesterday after the deal with Pfizer . I think that deal is very important and is creating awareness . The company is not widely known and investors are beginning to wake up and smell the success . I am planning to keep my shares for several years . The company has the best CEO in the world and for that reason I believe this company will make us some serious $$$
Some one posted here that company is in default . The fact is bondholder , Blue Mountain , stated that they sent a letter to the company last Friday that the company is in default . Blue Mountain also said they believe the company won't be able to pay .
Also I agree that short sellers will take this stock down to below $5.00 will automatically generate margin calls . So be prepared for the massive move to the down side .
No revenue , No new customers , No dividend, avalanches of lawsuits, massive costs , and I am guessing around $2.00 for the stock
This CEO will have no choice but to resign before the earning .
Can you imagine what this CEO has to say to analysts during the CC . That he destroyed the company and caused the stock to drop 90.0% . That due to his stupid pride or wrong doing he paid 2.4 Mil fine to the State , that he caused the State to put a ban on future customers acquisition , that he has brought tremendous lawsuits upon this company and should I #$%$
I can't wait for the CC