Anavex Life Sciences Corp (AVXL)

[Gator328]

I've got my shares tucked safely away underneath my bed. The funds can have some of them at $110/share.

You are correct that their goal is to acquire the stock for as cheap as possible, because funds are measured by their performance-based returns. It doesn't take a lot of money or effort to influence the stock price for a company like Anavex. I won't get into the machinations but there's plenty of interviews with former hedge fund analysts that provide a how-to primer.

As Anavex continues to mint new millionaires, previously strong hands will become weak as their goal shifts from profit making to profit protection. We're seeing this play out a bit already right now and funds are able to capitalize.

The good news is that Anavex is still majority owned by people like you and me. If somehow it remains this way when the FDA announces its decision for Alzheimer's, I'd expect a massive transfer of wealth as funds swoop in and take this to 75%-85% institutionally owned.