Deservedly so, it went from #1 to COMPLETELY OFF the list of top momentum stocks at StockGarden.
So now we learn that they are on,y selling 4M of the 28M shares they own, and at a price of $14/share. Interesting timing to be sure, and a pretty strong undercut of current share price.
Thank you for your kind words. One more thing to consider, you triggered another thought on the funders of ISIS, etc., add to that the way they can collect on short term options (puts and calls both) and they can really clean up.
Irony, to make it worse, good faithful investors like you or I have to put up real money to sell a stock short. Not the Hedge Funds.
So, to answer your question, why it is legal at all, that has been debated and threatened to be removed, but in a nutshell, they allow it because it adds liquidity to the market. I still think they need to put up collateral like you and I do - and that would get rid of a LOT of the nonsense we deal with.
In the end, valuations and earnings growth win out. If the company continues to prosper, then year over year earnings growth will eventually cause SO many people to buy the stock the shorts will have no choice but to cover and cut their losses. That takes a long time though.
You're kidding right? Short selling is far more damaging than psychological. Short sellers do real and permanent damage to the PPS.
Think it through. If an average day has 1M shares trading at $70/share. On its own let's pretend there are an equal number of buyers and sellers and the share price doesn't move. In comes a short seller who sells 1M shares short. Suddenly all of those buyers get lower and lower prices, as the short seller takes $70 then $65 then $60 per share until the supply of buyers is exhausted.
The next round of buyers aren't trying to buy at $70 any more, now they are trying to buy at $60. NOW apply your psychological aspect, where potential buyers see the price drop 15% in a day and they stay away, not buying at all, so diminished buying pressure, making the short seller keep a lid on the price, selling fewer and fewer shares short to stop the price from rising. Momentum and technical traders and fund managers see the price isn't going anywhere so they decide not to buy, further reducing buying demand.
Average Joe Shareholder doesn't wait forever. He sees his investment rank 25% and his inclination is to save what he can and sells at the bottom, which is usually when the short covers.
Or worse, he bought in margin, share price goes down, and his broker FORCES him to sell at artificially low prices. Shortie can cover then at no risk.
Remember, Hedge Fund managers don't have to put up ANY collateral. They don't get margin calls. They can sell an UNLIMITED number of shares short, even shares that don't exist. The counter argument is, well, they have to cover someday. While that is true, they can wait YEARS to cover, and drive the price far lower and cover there.
Remember when Jon Kellyz shorted at $12 and covered at $48?
Sounds like the meeting was a resounding success. It appears the FDA-NIH are fully behind this.
Wait!! Don't forget about the guy who is afraid that bad news might hurt the PPS !!!!
Uh, isn't bad news always bad for the stock? If it was good for the stock it would be called good news.
I've sold 90% of my shares. I still hold a few which is why I want action. Sadly, apparently I'm the only one who wants progress. Everybody else is ecstatic with a 72% decline in share price. I guess they are going to make up their losses on volume???
Sad thing is, the ones bashing me, are bashing me for wanti more/better/sooner. You would think that ANY long with a brain would want progress. Instead shareholders get delay after delay with the same blank look from management - who looks JUST as surprised this time as they did LAST time the FDA delayed them. Probably going to be just as surprised next time too.
The definition of insanity is doing the same thing over and over and expecting a different result.
As you wish. With shareholders giving management an UNLIMITED number of free passes, and NEVER holding them accountable ... Expect more delays.
Enjoy the delays... You've earned them.
It can NEVER be approved if they NEVER file. So far, they haven't FILED. so chances are ZERO.
Interesting that IBD came out with such a favorable piece. We should see some good upward movement with support as IBD is known for tough scrutiny. It also reminds me they have an astonishing track record about potential buyouts, and they did mention that Sucampo is more of a buyout candidate than an acquirer. Interesting.
With the short interest around 12% and the stock hitting on all rocket engines, I'd be really surprised if there are any short-sellers left around.
Actually, even the most naive investor could see that I'm asking for things that will benefit shareholders. I'm asking for progress, better management, and demanding action. Anyone who doesn't want that would be short.
I'm asking for them to take steps to get the drug approved. I don't think this management team can do that based on the last THREE unexpected delays that have crushed shareholder value from $50+ down to the present $14/share. I'm surprised that a "long" such as you wouldn't want better.
If you are pleased with the series of inexplicable delays and poorly designed clinical trials, then by all means, keep the current management team and keep getting excuses instead of progress. Keep getting a declining stock too.
Me, I want better. For patients, shareholders, and the company. And you bash me for that?
Really? You think that asking for better management, better leadership, and PROGRESS is whining? So, seriously, you are content with mindless excuses for delay upon delay upon delay with no real plan to move forward?
7 thumbs down mean shareholders refuse to hold management accountable, and will give them yet ANOTHER free pass. I wonder if this attitude will change when the stock crumbles below $10/share when they announce the next (4th) delay on filing and push it to the 2nd half of 2015.
I want SRPT to succeed,
I want Eteplirsen to get approved.
I recognize that this executive management team can't get it done.
How many times have get slipped filing?
How many excuses have they given?
How many MORE times will the BOD abdicate their fiduciary responsibility and let this incapable management team continue?
If you want SRPT to succeed, if you want Eteplirsen to get approved, you will demand new management.
You have to START a race before you can ever think about winning.
They can't get out of the starting blocks, they can't get started.