Avita Medical Ltd (RCEL)

[jugs]

This is upsetting. More than that, I find it ugly as I don't short stocks ever. They say it takes all types but I don't hang with these guys.
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PreMarket Prep Recap: 'Mad Money' Follies And Buffett Hits Another Home Run
2:15 pm ET December 5, 2019 (Benzinga) Print
After-hours price action in Avita Medical Ltd. ADR (NASDAQ: RCEL), a blockbuster earnings report and a significant ratings change were a few of the topics on today's PreMarket Prep Show.
Buyer Beware Of Stocks On 'Mad Money'
On Wednesday morning, it was announced Avita Medical's CEO was going to be on CNBC's "Mad Money" program Wednesday evening.
In anticipation of the interview presenting the company in a favorable light, investors aggressively purchased shares of the issue in Wednesday's session, climbing from $7.84 to $8.56.
Those investors were not disappointed as the CEO stated the company's technology was revolutionizing care for burn patients. On heavy volume, traders took the issue up another 20% from its close to $9.80 and then the hammer came down. It should be noted the after-hours high matched its high from Oct. 23 and was a few pennies shy of its all-time high from Nov. 8 at $9.82.
After the issue peaked at that level, a super aggressive short-seller came in and pounded the stock. Co-host Dennis Dick, who got caught up in the fracas, recognized the seller as a short seller since the issue had already exceeded price limits for the day and as a result, shorts could only be initiated on an uptick. Therefore, the seller could not smash bids, but had to get lifted on the offer to initiate the position.
The relentless step-down short seller walked the issue down to $8.18 by the end of the after-hours session. The trader may have covered at that level as 160,000 shares traded in the final 15 minutes.
In today's session, the issue found resistance just above Wednesday's close at $8.60 and is trading in the red.


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