News Pending. Trading Halt
The short side is on the cusp of an epic transfer of capital. I write about the shorts because Fridays huge decline in the first 30 minutes was a combo short attack along with some long sellers that did not dissect the CC and study the most important revelations presented. If it was given properly the fluff would have been discarded. The fact delivered in two minutes and then questions about only the facts presented. The fluff caused longs to be confused and emboldened the Shorts.
Back to what I see coming next week.
In the very near future a short with too large of a short in CYDY verses their other short positions will log into their short account and be shocked with not only a zero equity balance but a negative equity balance.
What a short does not know is that their broker has experience with this case. The broker will buy back all shares sold short in every position on the opening or even in pre market if possible.
Yes, the broker can do this. Read the margin agreement. They can sell longs and buy back shorts. What a short wishes is no longer a concern. If a short goes negative the Broker will lien all real estate, all bank accounts until that negative balance is paid.
Doubt me? Make a call to your broker.
I write this because I believe within one week there could be a trading halt in CYDY. News pending. That news will be that the current Covid FDA Trial, Phase 3, the last trial has met the FDA stated fill requirement. This is much sooner that what we have been reading one month past. If I was the CEO , once filled I would announce within minutes to avoid insider trading problems.
If filled prior to the open , no problem. Announce the news then. Do not delay.
The shorts and their first cousins the short term traders have been dancing in CYDY shares for close to 6 months.
Now it is time to pay the band and the bar bill.
Many shorts will attempt to dodge the payment of this bill. They may exit through the rear. They will be known as the survivors. Many shorts will be caught in an epic price adjustment to the upside. In the last 12 months this has happened twice.
December, 2019; the HIV sales agreement 33 cents to 1$
Third week in March when CYDY entered the Covid war. 1$ to 3.5$
My expected News Pending can be the start of a move that will make business and medical news.
What do we know about the long term outlook.
1) HIV. Three FDA trials and we are at the last BLA phase. Zero adverse effects.
Covid, many trials. Zero adverse effects.
Those that doubt this, stay short. A short needs a disaster to clear their thoughts. This will be the best lesson.
Sleep well shorts
