NanoViricides Inc. (NNVC)

[robi-1-kenobi]

~1million shares failed to deliver before PT libel article!

I just started doing a little more DD after Leifsmith's and Diabolical Southpaw's previous posts on the Dendreon sudden price spike example (Thanks for that!).

There were ~1 million phantom shares in NNVC that failed to deliver before the PT libel article. Those non-existent shares diluted shareholders and contributed greatly to the share price drop. A small amount of shares that fail to deliver is not unusual for liquidity reasons. But this amount, strategically put up against legitimate short and long shares look like they were (and are being) used to manipulate the stock price and thwart true price discovery.

Bottom line is that NNVC has been chosen for this stock manipulation for the following reasons:
- Not because of problems with the science, management or progress
- But because the BioTechs are easier target with science-illiterate weak hands
- And because new bio-technology is a challenge to develop
- AND, because NNVC has consistently been tightly held with "hard-to-borrow" shares and what had been a low churn rate volume that could be more easily manipulated with fewer shares.
- And had an attractive market cap to extract value from.
- And all developmental (before commercialization) biotech startup companies always have some non-material (to the SP) issues that can be exploited and trumped up by manipulative interests.

Note that I AM NOT talking here about normal short and long sales which are legal. I am talking about excessive phantom (naked short) shares which are not delivered in the statutory 3 day time frame.

I have done a search and find on NNVC FTD from the SEC website and copied the results at the bottom of this post.
LINK: SEC.gov Failure to Deliver

Note in particular the 882,616 shares that failed to deliver by Jan 24 and ask yourself - would the share price have dropped as much on Jan 21 (and later) without those phantom shorts to push against the 2,848,000 that would normally have traded without the extra phantom shares. This amounts to over 31% of the volume that would have traded that day.

In total, there were around 1 million shares that failed to deliver in the month before the PT libel article setting up for that hit piece.

More subtle, but more important to price recovery were the nearly 30,000 shares (~10x to 100x greater than normal in that timeframe) that failed to deliver on Feb 28 which were supposedly "borrowed" on Feb 25. This date is key as the stock was making a steady rise to fill the gap after the PT libel article. Without those phantom shares sold at strategic points throughout the day, there would have been less than 300,000 shares sold. Over 10% of the shares sold that day were non-existent and not delivered in the 3-day statutory requirement. If you notice the candle for Feb. 25, the stock was driven down after it had rallied on the continuing trend to fill the gap. This is highly suspicious.

So the claims about loss of value appear more related to what very well may be illegal stock manipulation than any real or perceived loss of value in the company. Remember, institutional investment keeps increasing, there has been insider buying, and there has been great continuing strong support by longs here.

What does that mean for the share price going forward? I think we can count on continued price manipulation in the short term. But it will be difficult to continue to do so under the radar of the SEC Reg SHO statutes when the company begins to release expected news on Regulatory Tox testing, efficacy studies at ViroClinics, PHE and LRRI and the completion of the manufacturing plant. These announcements could begin any time, but are likely by mid summer.

If you are worried about continued price manipulation, note the SEC Reg SHO statutes have additional reporting requirements when these "Failures-to-deliver" shares run for 5 consecutive days or more. This would add more scrutiny and suspicion after the many complaints of individuals on this board to the SEC regarding what seems to be a criminal stock manipulation. This investigation is much more important than the civil action that NNVC is letting its lawyers handle while they continue to develop their life-saving technology.

Good Luck to all longs.

1st Half Jan 2014
DATE CUSIP Ticker FTD Shrs Company Share Price
20140103|630087203|NNVC| 14|NANOVIRICIDES, INC. NEW COMMON|4.95
20140107|630087203|NNVC| 414|NANOVIRICIDES, INC. NEW COMMON|4.88
20140108|630087203|NNVC| 389|NANOVIRICIDES, INC. NEW COMMON|4.96
20140109|630087203|NNVC| 200|NANOVIRICIDES, INC. NEW COMMON|4.91
20140113|630087203|NNVC| 680|NANOVIRICIDES, INC. NEW COMMON|5.01
20140114|630087203|NNVC| 98|NANOVIRICIDES, INC. NEW COMMON|5.08

2nd Half Jan 2014
20140115|630087203|NNVC| 1262|NANOVIRICIDES, INC. NEW COMMON|5.39
20140116|630087203|NNVC| 994|NANOVIRICIDES, INC. NEW COMMON|5.39
20140117|630087203|NNVC| 10264|NANOVIRICIDES, INC. NEW COMMON|5.79
20140121|630087203|NNVC| 5082|NANOVIRICIDES, INC. NEW COMMON|6.05
20140123|630087203|NNVC| 18335|NANOVIRICIDES, INC. NEW COMMON|4.84
20140124|630087203|NNVC|882616|NANOVIRICIDES, INC. NEW COMMON|4.85
20140127|630087203|NNVC| 47085|NANOVIRICIDES, INC. NEW COMMON|4.80
20140128|630087203|NNVC| 7227|NANOVIRICIDES, INC. NEW COMMON|4.85
20140129|630087203|NNVC| 5043|NANOVIRICIDES, INC. NEW COMMON|4.83
20140130|630087203|NNVC| 1592|NANOVIRICIDES, INC. NEW COMMON|4.57
20140131|630087203|NNVC| 2260|NANOVIRICIDES, INC. NEW COMMON|4.75

1st Half Feb 2014
2014 02 03 -27 |630087203|NNVC| 1680 |NANOVIRICIDES, INC. NEW COMMON| 4.58
2014 02 04 -28 |630087203|NNVC| 1674 |NANOVIRICIDES, INC. NEW COMMON| 4.42
2014 02 05 -31 |630087203|NNVC| 1305 |NANOVIRICIDES, INC. NEW COMMON| 4.65
2014 02 06 -03 |630087203|NNVC| 300 |NANOVIRICIDES, INC. NEW COMMON| 4.60
2014 02 07 -04 |630087203|NNVC| 2084 |NANOVIRICIDES, INC. NEW COMMON| 4.47
2014 02 10 -05 |630087203|NNVC| 1662 |NANOVIRICIDES, INC. NEW COMMON| 4.43
2014 02 11 -06 |630087203|NNVC| 4289 |NANOVIRICIDES, INC. NEW COMMON| 4.42
2014 02 12 -07 |630087203|NNVC| 5660 |NANOVIRICIDES, INC. NEW COMMON| 3.36
2014 02 13 -10 |630087203|NNVC| 8018 |NANOVIRICIDES, INC. NEW COMMON| 3.48
2014 02 14 -11 |630087203|NNVC| 793 |NANOVIRICIDES, INC. NEW COMMON| 3.11

2nd Half Feb 2014
17 -12 0*
2014 02 18 -13 |630087203|NNVC| 272 |NANOVIRICIDES, INC. NEW COMMON| 3.45
19 -14 0
2014 02 20 -17 |630087203|NNVC| 6989 |NANOVIRICIDES, INC. NEW COMMON| 4.00
21 -18 0
2014 02 24 -19 |630087203|NNVC| 5899 |NANOVIRICIDES, INC. NEW COMMON| 3.87
2014 02 25 -20 |630087203|NNVC| 6310 |NANOVIRICIDES, INC. NEW COMMON| 3.89
2014 02 26 -21 |630087203|NNVC| 811 |NANOVIRICIDES, INC. NEW COMMON| 3.99
27 -24 0
2014 02 28 -25 |630087203|NNVC| 29862 |NANOVIRICIDES, INC. NEW COMMON| 3.90

1st Half Mar 2014
2014 03 03 -26 |630087203|NNVC| 4834 |NANOVIRICIDES, INC. NEW COMMON| 3.98
2014 03 04 -27 |630087203|NNVC| 186 |NANOVIRICIDES, INC. NEW COMMON| 4.04
2014 03 05 -28 |630087203|NNVC| 245 |NANOVIRICIDES, INC. NEW COMMON| 3.96
06 -03 0
2014 03 07 -04 |630087203|NNVC| 172 |NANOVIRICIDES, INC. NEW COMMON| 3.79
2014 03 10 -05 |630087203|NNVC| 380 |NANOVIRICIDES, INC. NEW COMMON| 3.77
2014 03 11 -06 |630087203|NNVC| 11974 |NANOVIRICIDES, INC. NEW COMMON| 3.81
2014 03 12 -07 |630087203|NNVC| 28213 |NANOVIRICIDES, INC. NEW COMMON| 3.86
2014 03 13 -10 |630087203|NNVC| 12910 |NANOVIRICIDES, INC. NEW COMMON| 3.89

NOTE: SEC does not report days with 0 FTD. I have added the "0" days here to more clearly indicate the spike in FTD shares on Feb 28 (29,862) vs the days around it which killed the fill-the-gap rally in the shares that was well on its way after the PT libel article.