What is Chen Buying? What is Chen Selling?
Letter 2195
July 22, 2019
Update:
Last week was a big week for me, not only silver did great, my Neptune Wellness Solutions Inc. (NEPT) and Acasti Pharma Inc. (ACST) both exploded. NEPT did a financing with mostly large shareholders and insiders. Remember shorts were all over NEPT as they smell blood of a raise. Before I left for vacation, I asked large shareholders of NEPT to consider doing a financing at a small premium to send the shorts a strong message. I am very pleased to see this 4.4 financing mostly by large shareholders and insiders. My friend George Haywood called it “the most impressive insider buying I have ever seen!“ You can see from the filing, Perceptive increased its stake to 15%, CEO and Chairman put in 5 million despite they already owned millions of shares. Every large shareholders participated including my friend Haywood et al. Plus this financing comes with conditions that the buyers can't sell any shares, exisitng or new for months to come. Basically the shorts are in a box and getting ready to be squeezed hard. We should have very exciting news coming starting with closing the US plant this month.
ACST is doing great thanks to a new research report Oppenheimer came out. It gave 7 dollar target assuming 30% chance of success. Personally I believe the chance of success is more close to 90%. As I discussed, tens millions of shares will likely be purchased before the data readout in December. I am holding my shares here. If you don't wish to take any risks, you can sell some before the data and make it zero cost into the data, which is likely coming out in December.
Regards,
Chen
