Large blocks like the ones you're mentioning are usually negotiated over a period of time (hours, days). The stock has a tendency to trend to where the negotiated price ends up. (Any guesses why?) In contrast, a small trade @ market will hit the bid or the ask and might happen at a time when the spread's pretty wide.
Jad, Unless the underlying index has just taken in INSM or just kicked it out, funds that try to mimic an index wouldn't be trading large blocks of the stock. Index funds typically trade in relatively small quantities to satisfy net daily reductions or net daily additions to the fund's share count. And the buying or selling would be spread out over the entire list of stocks that comprise the index. How about theory #2?
Rook, unless something extraordinary is going on, trial updates don't happen. Even management is supposed to be kept in the dark re: interim results. Are you making any money on your calls or are they just for our benefit?
Hey Schultzie, I'm curious: how hoave you made out with your naked short JUN 7 puts? I know there's no logical reason that someone would have put you the stock, but sometimes, as expiration approaches, the liquidity in the stock is better than the liquidity in the options and a long put holder could have been so frustrated trying to sell the puts at a decent price that he could have bought the stock in the open market and put it to you. Some color, please.
You all claim you want to get rid of the guy, yet you self-admittedly bait him? Shame on you. As for your "calls," how do we consult the Oracle of Florida's East Coast when we need some help on a trade?
Just an observation: it's amazing how many technical gurus appear when there's no real news at the corporate level and the stock drifts up towards its highs. Rook - Who cares what you think?
I believe the Mideast Times is based in Tehran. Every time you go to their website they're able to charge more for advertising and they probably get bonuses for any click through that you make on an ad, intentional or not. They put out headlines that are designed to grab your attention and get traffic to their site. They might be perfectly fine people, but they're from Iran. I would urge you to avoid visiting their site, regardless of the headline.
It-do, the stock's gone up from the 14 area to high of 24 in a six month period, without any supporting news. In fact, one could argue that the only real news has been negative (the dilution four weeks ago). This move higher has been largely on the coattails of the whole bio-tech group. Giving a chunk back has got to be expected, especially on a day that the tape for the bio-techs is so ugly. In any case, it'll give Mr. Blue Eyes a chance to build his position back up.
If you make a "ton" of money, why are you wasting your precious time on this board?
Maybe kvnmcdd got a hold of Terry's 2:00 a.m. bottle!
I am also baffled by lack of analysts' comments. Like day follows night, analysts' buy ratings follow secondaries. I am normally not a conspiracy theorist, but one thought I had was that Citi might have brought T Rowe Price to the table and perhaps T Rowe is not yet finished their accumulation. Once T Rowe has amassed all they want, then Citi's buy rating would be forthcoming. Just a theory.
What do you say we meet at Duffy's at Stoneybrook and celebrate the new high with a few early pops (of the adult beverage variety)?
VQ - I doubt the initiation of coverage will move the needle very much. Unless they have some new insights w/ regard to approval dates or new indications, their coverage will probably be a non-event. I would guess that institutional investors will not be caught by surprise by a Citi "buy" rating.
Jad, Citi doesn't have much in the way of a retail brokerage business. They used to own Smith Barney which, after the crisis, was gradually sold to Morgan Stanley. Most of Citi's securities business is institutional.
Bankers are bidding on business all the time. Insmed's decision to go with Citi could have been made based on:
1) Price (the underwriting fee)
2) Reputation (after-market performance of previous deals and the perceived fairness in pricing)
3) Ability to handle the volume (size, number of client relationships)
4) Prior relationships (a new big wig at INSM may know someone at Citi, or vice versa)
They're here because they were the lead name on the prospectus. This is all part of the investment banking game. If you're the lead banker on a deal, you come out with a "buy" rating after the quiet period.
Instead of guessing acquirer or acquiree, a far more immediate development will be Citi's initiation of coverage. We're still in the quiet period, but once settlement date is in the past, you can bet your bottom dollar that Citi will come out with a buy rating. I'll initiate the festivities with a 33 over/ under.