Quote LOL, "By publicly declaring its +$5 mil investment in $OCAT despite being less than 5% speaks volumes for its positive investment in $OCAT! "
They didn't "declare anything publicly"- they MUST list what they own, it's a law, LOL !!! And it says nothing "positive" about a stock just because a HEDGE FUND took up a position in it- post a secondary offering, LOL !!
So BlackRock the HEDGE FUND very likely bought some of the secondary- the one that CEO has FAILED TO DISCLOSE YET a) How many shares were actually sold b) What price those shares were sold for in the closing deal c) What OCAT NETTED after EXPENSES and UNDERWRITER DISCOUNTS and d) Did anyone buy any of the over-subscription, which via the simple fact they're being so vague and obscure about the offer closing (NO PR) IMO means a big ole NO more than likely.
BlackRock is a good candidate IMO for who's been SHORTING this and helping it make new 52 WEEK LOWS and experiencing a large recent SELL OFF, LOL !!!
There's been no "large net buying" of this stock??? The stock is DOWN and DOWN BIG from $7.50 a share only about 45 days ago to a new recent LOW of $4.88 and now barley holding $5 lousy bucks a share. That means large NET SELLING is taking place- not "buying"? Stocks being bought in large volumes MOVE UP, NOT DOWN, LOL!!
The secondary was a toxic warrant laced BUST- that didn't even end up as HALF of the original $62 million they were boasting about end of 2014 and now came with warrants tacked on too boot. IT WAS A WEAK SECONDARY no matter how one slices it. The company is in serious hurt for CASH- they don't have anywhere near the cash to fund a large phase II- not when they burn about $8 MILLION a qtr just sitting idle, w/ ZERO trial funding taking place.
They'll probably net maybe $28 million, not even ONE YEAR's WORTH of cash and much less than that if they ever do manage to start a phase II and start paying the large tab that's gonna come with it. They're already on the path to DOUBLING THE OUTSTANDING shares since their OTC to Nasdaq conversion with little to nothing to show for it IMO. They're gonna need to DILUTE and DILUTE BIG again before 2015 is even over more than likely- putting more down pressure on the shares, barely holding $5 aka the penny stock cut-off point.
The stock is weak, the company is financially weak, they're cash weak and their execution to promised goals and objectives is weak at best IMO.
This has a lot of downside potential at this point- and if the overall markets turn weaker (LIKELY) given the global and U.S. economic realities- then this is a prime short target of the hedge funds and pro trading desks. Cash poor micro caps with no prospect of a product or revenues for YEARS, IF EVER, are golden short targets of the Nasdaq "big boy" and the BlackRock hedge firms out there.
I don't believe for a second that BlackRock is "long" OCAT- they got shares for a flip off the secondary IMO, nothing more and nothing less and will likely also then be using the options to "game" the stock even more for bigger profits.
MY barely $5 bucks worth
Posts contain only my amateur opinions, personal views and thoughts. I discuss stocks as a hobby only. Always do one's own due diligence before investing.
