Anavex Life Sciences Corp (AVXL)

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Overall I don't think there is that coordinated a plan.

Anyone capable of spending five minutes reviewing AVXL's stock chart can see that AVXL's stock price destruction is not due to some highly coordinated plan by some evil short cabal. That's just lame excuse for those unable to see and understand the big picture and those blind to facts.

When the AD results were announced during the week of November 28, 2022, the stock price declined 37% on a volume over 58 million shares representing 75% of total outstanding shares. When the Rett EXCELLENCE results were announced, the stock price dropped 35% on a volume in excess of 9 million shares representing 11% of the outstanding shares. So the biggest hits to the stock price happened on two trading days following the release of AVXL news and those price drops were associated with huge overnight turnovers in stock ownership. Obviously, there was no coordinated plan miraculously put together by some cabal and orchestrated overnight. These were simply huge market sells by the majority of shareholders on perceived bad news events that were huge gut shots to AVXL. Of course, existing shorts piled on and no doubt that new shorts started positions but that only added to the misery.

Since then EXCELLENCE results were announced, the stock price has been as high as $6.95 and the low was $4.46 representing a further 36% price decline. Is some of that drop due to the hugely successful short position? Of course it is. But, it makes more sense that, in the absence of compelling fundamental good news, an already crippled stock has just naturally continued to sell off by a large contingent of discouraged AVXL investors in a continue weak investment sector. Any new buyer demand has been overwhelmed by short players.

Probably 70% of all trades are driven by machines following sophisticated algorithms benefitting shorts, market makers, and other nefarious players. That accounts for most of the daily trading volatility and can result in prolonged periods of stock price downturns. But as demonstrated above, it has been AVXL news events that have destroyed AVXL's stock price. AVXL remains a highly damaged stock that remains in a downtrend in the absence of good news. It's pretty simple.