Joe, you wrote
* Noteholders are maintaining their short position;
* Existing shorts have to short more to hold PPS in check;
* Additional retail shorts are betting that Fusileve will be materially impaired by Sandoz.
1- Noteholders do not see any reason to cover since the company is getting worse in execution.
2- A short seller does not short to maintain his position but to make money same as a long. A long does not buy more shares to maintain but to make money.
3- The only point that you may be right. Inddeed, Fusilev sale will go zero for SPPI.
"Upper BB = $6.15, Resistant"
"EMAENV(20), upper band = $6.19, Strong Resistant"
Thanks for info.
I was able to short from $6.18 to $6.14 today.
Will SPPI can keep $6 price? If yes then why investors are shorting it at $6?
A check a few biotech that dropped sharply. Short interest was going up every 2 weeks the same as SPPI.
Following is taken from an article in AERI which is down over 62% today.
This news (AERI news), quickly followed by the stock's nosedive, is precisely why the biotech industry is an entirely different beast compared to others in the stock market.
News about one failed test on one drug, sometimes the only product a company is selling, can make a company completely worthless.
But the opposite is also very much possible, and is why biotechs are among the best-performing stocks in the market.
For instance, Biogen surged by more than 9% to a lifetime high March 20 after the company announced results of a preliminary test for an Alzheimer's disease treatment.
Biotechs are up 16% year-to-date, and 49% over the past 12 months; the S&P 500 is up 2.6% and 13.3% respectively.
Even Aerie has performed well; based on Thursday's closing price, it's rallied nearly 137% over the last 12 months.
So, investing in biotechs is incredibly speculative, and like gambling, it can end extremely well, or wipe out nearly all of your investment in one day.
SPPI won't go any where if it does not close near its 52 weeks low.
Raj is busy counting his money and he won't give it rat...about shareholders.
"Might as well join the ride up!"
Or jump from a cliff to your portfolio death.
We will see more of one day over 20% drop in near and far FUTUR.
Look at AERI and CPRX, SPPI can do the same.
Short term, today was a lucky day for those who want to exit since new lows are in the way. Just look at the chart, any time it hits Upper Bollinger Band, it heads to lower band in next few days.
So, enjoy the green since it won't last.
Even companies with a few employees say something once in while.
SPPI has zipped its lips. Last company that I was involved did the same before going BK.
But every Friay I have to pray for no news since SPPI wait for Friday after hours to dump its bad news.
Last time, it was Sandoz court case that SPPI lost it and then tried to tell investors it is no problem. Yeh, no problem for Raj who got 100k shares at zero price.
Sell your shares as soon as possible since SPPI is doing lower lows every week. Market has been up mostly this week but all SPPI could do is to lose more in one day to gain some back in past 2 days. If market was red then story was much worse.
May be he forgot to remove zero after $2.
You can judge the year by January but SPPI is spinning its wheels again. It has to unload some heavy weight employees. Starts with CEO and CFO who are getting fat options with no performance.
Last time when SPPI dropped and marked 52 weeks at $5.65, on first day closed at $6.28.
This time, it marked $5.58, but drop was less than 1%.
What does it mean:
There will be no dead cat bounce.
$5.84 will be the best price for a while.
The PPS will drip to its 52 weeks low and eventually close in that area.
There may be more bad news since SPPI management is not releasing any news.
Sentiment: Strong Sell
Estimates will be lowered again too.
Sentiment: Strong Sell