It becomes more and more looking like the recent sharp share price increase is in a big part the result of naked short covering which is ongoing and in a mini-scale:
1) A few very revealing and positive signs leading to almost a certainty that the trial will be successful, including Flaskswork acquisition, endpoint changes, EU buyin, etc.;
2) Ever increased awareness as a result of 1);
3) As share price appreciates continually day after day, it generates more awareness in the general market. The hedges who have participated in previous financing may add to their positions, and there may be a few new hedges who have been also onboard; and
4) Of course, Topline data any day now, which should be a slogan for the time being.
But, a Big But, according to my observation, the scale and trend of the volumes traded recently cannot account for all the above. Yes there has been definitely short covering, namely, those legally shorted (about 18 million as of 30 September) short covering,
But I strongly suspect it is most likely the recent sharp share price appreciation is in most part the result of naked short covering from the naked short wolfpack. According to the past estimate of Les, there could be well over 200 million naked short shares.
As a result, considering the continued increased market awareness and the much larger part of the naked shorted shares which have not yet been covered, the ongoing share price appreciation will continue.
Then, the topline data will be announced. If the results are as good as we have expected, there will be a further huge market awareness and shock in the market, not only does the short have to cover at any cost but there will be a huge unmed demand for shares from both the general market in general and hedge funds and institutions in specific (with risks removed, they will be readily onboard).
Above is just a touch of pure technicals. By now we should all know the huge potential of DCVax platform, and what we should expect if there is a buyout in terms of price.
Welcome new bloods, bye bye old timers!
