waiting for the other foot to fall
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That said, someone has this superglued to $5... Must be the financing price.
I watched the video where he said it. It was over enthusiasm at the least. i am not saying this is one of those total China scams like Longwei Petroleum. I am saying he walked back an overly enthusiastic misspeak and now the stock is going to pay for it.
That was probably just the impact of their sales.
so far. Closes under $4.
under $5 at close = margin calls if people leveraged it come Tuesday.
softened rather than walked back, but that is a fatal mistake for a CEO.
BREAKING: The $SRNE CEO walked back his comments about having a cure moments ago
— Hindenburg Research (@HindenburgRes) May 22, 2020
We believe this amounts to flagrant securities fraud when compared to his statements to Fox last week.
We encourage regulators to investigate any stock sales in the interimhttps://t.co/kBk6GijH0s pic.twitter.com/GSGX7uKQCh
If you listen to the Raging Bull podcast with Ji, they are on solid ground with their tweet.
truth did.
no dispute on your analysis but avoid puts on this. The chart says you will need longer term options and will spend more on their time-value than you can gain on the drop with certainty.
do you mean these are Chinese companies (the ownership is China) or that the management is Chinese American?
Yes, the mayor took the news at face value and highlighted them to instill hope and confidence. A politician confirming a businessman does not make it science or truth.
VP of R&D for an industrial tech company and a design consultant that had a project on a medical implant last year... no boiler room. I know they exists on both sides (promoters shilling shares for company finances and bashers for shorts) but I am neither.
It means todays 'news' was fluff and did not have the intended effect. That said someone was throwing money at the bid at close to keep it over $5. A leveraged long that needs it to remain marginable might be motivated or it could just be that is where the MOMO's are buying back in at for pump #2.
it could happen one or two more times, but if that was 'the news', the $3 floor is coming soon - and the basement may be next. At least for a couple months while they talk to FDA.
no, it means the MOMO players moved on, the company is unable to sell into the fluff news, and shorts are waiting for the cliff dive as bagholders realize negative posts were not lies.
would love to know their strikes and dates :)
No disclosure of what the deal cost. Hopefully for longs it is royalties only other than the up front cost of approvals based on the data. In any case, IF they get through a near term financing, it is good news for them.
believe what you will. I work on medical devices on the side...
permission to start preclinical 2-3 months (his words) = July
animal safety test = August - October on a speedy test
first in human permission = November/December, safety by February.
It COULD optimistically qualify for emergency wavers next March. That is also when it would likely start efficacy clinical trials.
that is why I stressed "after I know the terms of the financing I would be buying into". I might also close out my puts and run fast.
I prefer stocks like LEDS where an investor did a $4 pipe into a $2 stock for 150K shares... or even SLNO that keeps going up on nothing periodically - no hype or anything.
but my biggest holding is SKWS (25%)
There is a rule that any time they have inside info that they do not make public for any period of time, they cannot. Another rule covers the period immediately before releasing financials, which covers the present as I recall.
There may be a PR coming, but you cannot conclude it from that information.
They are approving repurposed pharmaceuticals for emergency use. They would HAVE to prove safety if not efficacy to get that permission and that is 6-12 months out. 6 months would land them in the fall second outbreak, so maybe. It's unlikely they can get a safety trial in humans done before this time next year or even fall 2021.
not a pump and dump scheme, but pumping to raise capital at above fair market value, praying to keep the company funded, and painting an overly optimistic picture on his first interview. Yellow card.
I would buy $2-$5 after I know the terms of the financing I would be buying into. If they are selling shares into this promotion for fundraising (happens all the time) at pumped prices, but the financing is mostly at $2.50, those who donated at the pump will be stuck.
Been through it too many times
Dosage of 1mg in a petri dish will be much more in a human, but tens of mg in tens of ml by injection or drip are unlikely to be an issue either.
Safety is not a concern - gamma globulin (IgG) injection has been used for many infections sice 1980's and earlier.
Efficacy is. Petri dishes do not have immune systems. Immune systems attach foreign matter. A monoclonal IgG from another animal - and potentially even from another human - can trigger an immune response where the body attacks the thing meant to cure it.
Still, IF they raise $50M ~ $100M to stay open 2-4 more quarters (based very loosely on what I heard on the calls) I would give them a decent change of showing safety and a not bad chance of efficacy. If they get permission in 3 months they could start in 5-6 months and finish phase I inside a year - if they are allowed straight to humans instead of a 6-month preclinical pig or simian trial. The cardiac pressure implant I was working on had to go 6 month pig + human feasibility 6 month plus 2-3 year clinical...
That is why I have puts and not shares today. Sometime in the future that could change, after they solve their cash issues.
Market Chatter PR
03:41 PM EDT, 05/20/2020 (MT Newswires) -- Sorrento Therapeutics (SRNE) Founder and Chief Executive Officer Henry Ji expects to get US Food and Drug Administration's approval to start clinical trials for STI-1499, its potential treatment for COVID-19 in the next two to three months, Ji said in a video interview on Yahoo Finance.
[comment: They do not have 3 months' cash on hand... same interview]
Shares of the company were up 4% in Wednesday late-afternoon trading.
About the stock price volatility, Ji said his team is focused on getting a COVID-19 treatment to market.
"There are a lot of investors suspecting this is another pump and dump, which is typical, which is normal, but we don't believe that's the case," Ji said in the interview.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
Management cannot buy or sell for a period before quarterly and annual filings. He did all but admit financial panic. I bet that a past tense share sale is announced.
continuous innoculation or IV drip because no antibodies get to the blood stream through oral ingestion...
1) once fully developed it could cure infected people, but antibodies do not last in the blood stream. Vaccines stimulate B white blood cells to continuously make an antibody, so unless the B cells that create this monoclonal are injected (and then there is a patient by patient histcompatibility screen) a vaccine is still needed.
2) While promising, results are far from a cure.
IF - and i am not pushing that story but it is possible - it depends. It is a legit biotech company and not a share spewing shell company, so absolute closure is unlikely. Delisting is extreme but possible.
A trade halt of days to weeks is possible. It would deprive the company of access to public capital off their misleading comments, which the SEC would find desirable. It would also freeze people in options - puts or calls - and they could expire before a suspension is over.
A fine and consent agreement are likely, given what I heard. probably a few days suspension to make the true believers take a pause and think about it. I am not saying this is a scam. I am saying they implied a cure when they are years from it - even in today's accelerated trials environment.
I might go long when they get to human efficacy trials, but not for more than a chart play now and I caught the chart at the top, so I had to play the slide down. If I had caught the hype at $3 going in, I'd have held my nose and ridden it up.
The real thing is, there seem to be a certain set of shareholders that are always on these plays where momo precedes the company selling shares in a public offering. They might just have good stock screeners for momo opportunities, but 20 years ago it would be a given they were advised by stock promoters.
kiss $3.50 up-test bounce to $4.30, close near $4. If they are suspended, it will not be that quick. SEC is sluggish.
Kissed $5 as expected. Churning $5 support and could bounce as high as $6. Next support around $4.30.
Think about how the MRNA situation really applies here...
ending covid, one petri dish at a time.
try short selling a stock like this. I would hate to try and the $8 potential profit from the peak to the floor is not worth it.
Buying puts and selling calls are betting against a stock but they are not shorting. I never have to cover a put option, I either make money on them or I do not. Nothing to squeeze and if the MOMO group you follow is suggesting a short squeeze it's just so they can finish selling before you do.
It is no more greedy than betting a stock goes up.
It is no less ethical than any other trade.
It is legal.
The disruptive posters on both sides are a nuisance. If you cannot hear truths and factor them into your investing, I recommend mutual funds.
i had options on an oil etf that closed last month. got stuck because it was closed to new trades.
will close my puts out this week rather than risk a halt - not like I bet much on it. Relearning an old ploy of finding the biggest % gainer overnight and playing puts on the fade... forgot about compression for low price stocks.
... will kiss $4 or close to it today.