Why does this suppression of share price makes me feel good about my investment?
I come from an analytical background, both from a sports betting, poker and investment perspective. When you place a bet you want the highest odds. When you put money in the pot, you want to hold the best possible hand. When you buy a stock you want the lowest price. Also, when you short a stock, you want to do it at the highest possible share price.
If the shorts were certain about the failure of DCVax-L's phase III results, you would want the share price as high as possible. Whether we are talking about HF's shorting or individual investors shorting, you don't want to short at these bottom levels.
Did they gamble on their ability to crash the price when they let the SP run to over $2? They tried hard to keep it lower for a long time and my guess is that they ran out of shares to short to keep it down. They pushed as hard as they could on May 10 and they were obviously successful in their quest. It is undeniable that they made a good deal of money on May 10.
We have now seen a glimpse of what the results will be. They have continued to spread fear about a possible approval of DCVax-L. The people in the GBM world are all fairly certain that the results are really good. Why would these entities continue to short at these prices. If they are currently continuing their shorting of the stock, the downside is a lot bigger than the upside at these levels. Therefore, I highly doubt that a lot of long term shorting is currently happening. They could be shorting the stock when it moves up, just to cover a few cents lower. We have seen this pattern being successful every day for the past week. What I see is that this suppression is giving them a chance to cover their remaining outstanding shorts.
Now back to my view of shorting at the highest possible price. Why would they continue to spread fear about approval, if they really thought that this is a failed trial and that DCVax-L would never get approved. It just doesn't make sense. Most of the major players on the short side in the market, remain silent until the stock reaches a certain level or when they have fulfilled their short position. At that time, they go public with their short position and their reasoning behind their position. They hope the market will understand their arguments and follow suit. We are nowhere near anything that looks like an attractive price level for shortening the stock. The SP have proven time and again that it can run up to and even over $2, when left on it's own.
Now, I understand that there will be some who will argue that letting the stock run up will put management in a better position to raise funds and possibly uplist and that there really won't be any big opportunities in the future for them to spread fear, like they were able to after the NYAS presentation. That just add to my argument that they are fully aware of the fact that the news to come in the future will be great for the company. They simply cannot afford for the SP to rise if they have not fully covered their positions, if they don't see any good chances to spread fear in the future and crash the SP again.
These are some of the reasons I sleep good at night and think that this suppression of SP will benefit NWBO in the months to come. Let them cover and get out of the way. I am adding a little over time on these mini bear raids. I do feel bad if any of the retail investors have been selling at these levels. I highly doubt we will see the SP over $10 that so many posters were predicting, but I have a hard time to think we will not break $2 in the next few months and stay above that level. That is a 3x banger and in this market, they are not easy to find. The fact that the rest of the market is tanking (though we see some bear market bounces) and will likely not hit the bottom until July, is only an added bonus, as it should give you a chance to get more for your NWBO shares and buy the market at a lower level.
GLTA
AI
