Anavex Life Sciences Corp (AVXL)

[raja48185]

Short interest here is up to 22 percent, betting against a company -- trials aside -- that has no debt and three or four years of cash on hand. Hard to make sense of that.

My guess is that shorts are not looking at the cash at hand (and the number of years Anavex can sustain) as the deciding factor.

More like they are making a bet that, in the coming month or two, there is not going to be any Rett news that is big enough to move the pps up and beyond double digit for good, as we head into EOY. Add to it, the theory of tax loss harvesting and throw in the market factors like war, union strikes and the Fed into the mix. The shorts do have an advantage, it would seem, at least in theory for taking the risk - a long fuse to wait it out, before panicking - (pps erosion from $12s/13s to $6s during the past 10 months).

We should know going into 2024 where the chips fall. Also do not think that other catalysts identified are going to make a meaningful impact on the pps, even if all of them are achieved.