@twi
Quote: "this implies a belief AMRN trades higher into interim."
That would be the expectation for a biotech facing a game changing binary event..
Amarin may be a little difference because there could be some reluctance on the part of funds to buy in..In late 2011 and early 2012 funds held a very high percentage of the common stock...Many of the big players got burned..
They got burned not by the erratic unpredictable actions of the FDA in Oct 2013. That came later.
The problem for the funds was an old one...liquidity...Funds and institutions are the eighteen wheelers on the market highway..The high percentage of institutional ownership in Amarin created a "crowded trade" which set off a selling cascade..When the price went up to $19 some funds decided to take the money and run..
When players having hundreds of thousands of shares, or millions, decide to close a position, it is a very delicate situation. The problem is not only rounding up buyers, it is your sales can lower the price if there is not enough liquidity (demand or supply). Funds that trade hundreds of different companies, need rules in place to handle market situations as they rise..So many funds have automatic stops in place if PPS falls below a certain level...So Fund A's selling may effect Fund B and trigger selling in other firms..In Amarin's case it simply did not trade enough shares on an average day to accommodate big block trades.
So we may not see the institutions moving in as early, because they have long memories...But this will not be the case when R-I comes in with great results...
":>) JL
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