ANI Pharmaceuticals (ANIP)

[LordDarley]

This decline on heavy volume is is not bad news from the FDA. A submission has not occurred yet.

More likely this involves the 2.4M + shares to be issued to Novitium holders in the second half, and the convertible preferred shares to the PIPE investor.

With assured ownership, institutions like these can go short or long at will. Partly, this can be to hedge risk of an ANIP share decline, and there may be a good old fashioned profit motive that's easy to exploit with a thinly traded stock.

I was hoping when the last convertible issue was retired that ANIP had seen the last of them, but it needed the PIPE convertible money to make this deal happen, and convertibles breed short selling.

My "prediction" for what it's worth is that the post-call pop last week was pretty legitimate, but it was so extreme it allowed an institution holding rights to ANIP stock to make a no-risk short sale. I think the Raymond James raise to $60 is a better predictor of ANIP price. Let's hope so.