It is not an issue of why he would dump now it is about underwriters and market makers and the investment firms supporting this company dealing with such a husge overhang. Unless there is an agreement between him and them to sell at a set price the overhang of such a large sum of shares is an issue.
I am flat at this time having buying and selling and making some money. I have never held because i suspected and posted the question regarding a secondary with no answer from the company. this company will need significant funds to roll out their product. Probably tens of millions of dollars. The stock has been hyped up and my guess a portion of the short position is based on a secondary. What is the risk if a ib knows that stock will be available from treasury in the future at a lower price? My guess is that the secondary if there is one will be priced right around 22.00 because that is the price that the insiders sold at or a bit higher. If there is a secondary coming, like in the instance of srpt there will be a floor established and decent upside.
The question that should be asked to these people with clear agendas is if they are being compensated in any form for their articles.
no it makes no sense at all. This company has a great deal going for it beyond a barda grant. Plus- what investor buys 7.5 million at 2 hoping there is a market for their shares at 2 so they can own 3.2 million options at 3? That makes no sense.
Risking 15 million dollars at 2 to sell at 2, assuming there is a market for 7.5 million shares so that you can own 3.2 millions options at 3.00 makes sense to you?
That would make no sense- the offering was for 7.5 million shares at 2.00 with the right to purchase 3.25 million shares at 3.00. The underwriters are most likely accumulating with some shorting and profit taking. Don't forget that this stock was trading at $1.25 not too long ago.
You don't need to look at level 2 to know that there is accumulation by large firms. The volume says it all!! This stock is poised for a major breakout.
I have never shorted unxl and i never will. Currently i am on the sidelines waiting for an answer to a question. Is the company raising capital or are they going to. Given the massive short position i am guessing that it in part is because there is a secondary coming. I might be wrong but to roll out a major product it cost a lot of money and i'm not sure if unxl has enough from warrants etc... Ia m waiting to buy back in after my questioned is answered by the company. A good example of what i'm talking about is srpt which ran to 45.00 only to trade down to 20.00 and then a secondary announced at 25.00. Cbli, whic i own at 1.90 ran then traded down to 1.50 where a funding was completed. Now that stock is trending higher.
I have never shorted unxl; only been long, but currently am on the sidelines waiting for an answer from the company to an email question. the large short interest causes me to think that yes there are individuals shorting the stock and they underestimated it explosive potential. However, and this is my question to the company, are they either contemplating raising capital, or are they about to. This would explain the massive short position. From the perspective of an investment firm what is the risk if you know you're raising capital at a set price-say like srpt $25.00.to me, this company aside from warrants and i believe the 5 million dollars from dell, is most likely going to need significant capital to roll their major breakthrough technology to market. currently the only major position i have is cbli at 1.90 a share but i am looking to but unxl should it correct a bit and i have a better handle on the aforementioned issues.
Uvxy is pegged to the near term vix futures which are labeled the fear indexes. When fear is high and buyers are hedging short term there is a possible overlapping of the shorter term vix futures and an actual premium in prices to the closest futures to expiration. When the anomaly occurs backwardation exists and uvxy surges. When the gaps between short term vix futures and the following months is greater contango exists and there is a constant erosion in value of uvxy. Now some would argue that shorting uvxy is money in the bank and because of constant stimuli to the economy by the federal reserve, this will continue. So far they are correct but, there will come a time, most likely sooner than later, when all the debt will come back and haunt us. Even the cpi numbers are unrevealing because consumers are borrowing off credit cards and equity in their homes for spending purposes. At these levels i would not short uvxy. However, this etf is highly speculative given that no ones knows when the bubble will burst. When it does, i can see uvxy multiplying rapidly and catching the shorts off guard.
Why? Because they have done their due diligence and know the explosive growth potential that exists-period. Extremely low market cap at these levels relative to upside potential and the reality of what they have and who they are in bed with.
Sentiment: Strong Buy
Due diligence completed by informative professionals with one agenda- find explosive up and coming companies and give them the privilege of presenting their companies to 0ver 400 potential retail and institutional buyers. Thanks shorts for the shares pre-market!!
Insiders sell shares for numerous reasons. In some cases they have estate planning issues or just want to reap some rewards for their efforts. All selling insiders have a significant amount of shares left. In other cases, especially with a small float, when large firms are becoming involved they may ask insiders to sell so that they can get their hands on shares. Institutions are accumulating this stock, which is a good thing. From what i have read independent due diligence on unxl has led to significant buying. Seeking alpha obviously has an agenda.