It shows 8M out of the 35M float as short ... it doesn't come out to 58%. Hard to rely on those statistics, but suffice it to say, there was a large and strong ... and very underwater ... short contingent here. Enough that they had to call in the big guns! They are ONE catalyst away from not recovering!!
From "Deep Capture" 2009... is it true? Who knows... but it is eerily familiar:
"...One of these analysts is named Jonathan Aschoff, and he works for a financial research outfit called Brean Murray Carret & Co. The day after the advisory panel vote, in an interview with Reuters, Aschoff made the long-shot prediction that the FDA would not approve Provenge, but would instead ask Dendreon to supply additional data showing that the treatment was safe and effective–a process that could take years. Soon after, Aschoff told other media outlets that the FDA would set a “dangerous double standard” by approving Provenge because the treatment “did not meet its primary goal in two Phase III trials.”
During the first days of April 2007, Aschoff was everywhere, continuously repeating this notion that the FDA would set a “dangerous double standard” by approving Provenge. On April 9, Aschoff reiterated his “sell” rating for Dendreon, setting a target for the stock at a mere $1.50, which implied that the stock would lose more than 90 percent of its value by the end of the year. Reuters, Associated Press, CNBC and other media dutifully reported Aschoff’s comments as though they shed light on the merits of Dendreon’s prostate cancer treatment.
Aschoff’s performance raises a few basic questions. The first is, how did a Wall Street analyst know that it would be “dangerous” to approve a medical treatment? It is an odd day, indeed, when the media turns to Wall Street for wisdom on matters of science and health.
The second question is, why was Aschoff so confident that the FDA would not approve Provenge? Given that the FDA had followed its advisory panels’ decisions in 97% of cases, and in 100% of cases involving drugs for dying patients, Aschoff’s prediction seemed rather far out. What did he know that the rest of the world did not know?
The third question is, who is Jonathan Aschoff? Less
I remember that because I was one of those that got shaken out of DNDN on that b.s. Not this time, ASSchoff!!
Do ya feel lucky, punk? Well, do ya? You played your hand, and it will be exposed! Now slink off into the sunset, you lying pack of thieves!
There ... I feel much better!
Yeah, they knew they had to resort to unethical "analysts" to carry their water and take the stock down with bogus accusations of being "fraudulent". He had better hope that RMTI isn't speaking with lawyers at this very moment. You can't just throw those terms around without verification to back it up! We'll see who gets the last laugh here. Many of our resident shorts were so underwater as they were predicting gloom and doom since RMTI never looked back on $5. I'm sure a good number took advantage of the 10M volume yesterday to extricate themselves. If not, there's more upside risk than down here and they know it!
This is a rather simple insight I will be exposing in this article, so it should be short. Today, one of the great movers in the stock market is Rockwell Medical (RMTI), up a full 37% as I write this (and that's on top of a significant rally yesterday as well). The reason for this move is the result of yet another trial on a product candidate that RMTI is fielding. The product candidate is SFP, an iron supplement that's delivered through the normal hemodialysis process.
What SFP does, is regulate the levels of iron in the blood, and its main benefit comes from a decreased need for EPO (Erythropoietin). With SFP it thus becomes possible to maintain target hemoglobin levels using smaller quantities of EPO. Both dialysis centers and payers (Medicaid, insurers) certainly will be happy to have a cheap product achieving that objective, since EPO is so expensive.
So who loses? That's the insight. There is a loser. The loser is the supplier of EPO. There is one company that's almost synonymous with EPO, and that's Amgen (AMGN). In truth, though, Amgen is no longer as reliant on EPO as it once was. But still, checking its latest 10-Q we learn that 22.3% of its revenues come from EPO (Aranesp, Epogen). While not as relevant as it once was, it's still nearly 1/4th of Amgen's revenue base.
In short, the success of SFP could easily be Amgen's problem. And that's the insight. Amgen will be seeing headwinds from SFP in its Aranesp business (perhaps not so much on Epogen because it's losing patent protection now, so it is going to be pressured anyway). And to make matters worse, though in unrelated fashion, Amgen's largest product
FWIW ... I am accumulating on the pullbacks now. There is nothing substantial in that clown's "downgrade" yesterday, especially since it was rehashed. I was doing a lot of reading on the techniques used by these "analysts" in conjunction with some of the blogs/newsletters, etc. to take a stock down for the shorts. Just seems like another example of the uneven playing field we find ourselves on.
Check out RMTI yesterday ... same thing. Buy side analysts with $25 PT and some low-life who has never even covered RMTI comes out with an initiation of "sell" PT $4 and it trades nearly 10M shares to the downside. Unreal ... The market is a cesspool!
You'll need to Google this topic for the archived article. Very enlightening how the vultures manipulate the stocks they "downgrade" and/or short. Type in this title AJR Short on Ethics
From AJR, September 2010
Short on Ethics?
I was "forced" to take a few ACRX trading shares profit this a.m. when I saw RMTI go under $10. Never thought I'd get any there, again. Pays to watch, doesn't it?
I didn't even know Brean was covering RMTI. They did not even speak to the company about their concerns before issuing the "downgrade"? How can it be a downgrade when they didn't have coverage before? Summerstreet sees this as a buying opp and reiterates their BUY and $25 pt.
HE is the one who put out the alert ... doesn't make sense, but it seems to be true! I'm thinking he took his high profile to shill for a short wanting to cover. Birds of a feather, and all ...