Amarin Corp Plc (AMRN)

[FlyFishingStocks]

Activist investors buy undervalued assets for a reason

You are right! But your reasoning is misguided.

This activist bought this fallen angel and made it a cash cow for his proxy investors. He has engineered 3 rallies all of which failed to new lows.



He knew he had a large retail shareholder base that would ignore all the negative and keep buying into every upswing. This money making opportunity was too good to pass up, in spite of the liklihood this company would never recover to what it was because of the self-inflicted wounds and the outside opposing forces... didn't matter.
He could buffer his losses with trading activity long and short. If a buyer ever did surface, he could afford to offload the company for cheap. No one knows this better than the AMRN bears who have owned the trend of the price action since the FDA approval. They know that the characteristic of the drug doesn't cure; only prevents. As such, they know it's hard to gauge its efficacy when patients don't feel any different after taking it. This eventually leads to a falloff of prescriptions and a decrease in revenue.