Ruengies, It might work, but Cobalis is so thinly traded that it might backfire. The presence of Cornell and the floorless convertible is another wildcard factor.
Sometimes there is a lag time between an announcement and the up move. Cortex's post-Roth period is an example, but there was a confluence of factors there which might be difficult to repeat. First of all, the "announcement" (good electron microscope results) was not necessarily viewed as a high profile binary type event, even though it turned out to be. And the announcement was given at an investor conference, and there was no press release right away. The announcement was not heard by that many people, and the extent of its importance may not have been widely appreciated. Another factor was that there had just been a mini-PIPE completed, and at the open of the market it seemed like some of those PIPE shares were being sold into the rally. For an hour or so there was a huge amount of liquidity, and one could have bought as many shares as you wanted in the $1.20-1.30 range. Once the PIPE related dumping was over, the stock took off big time.
While there are some similarities to the Cobalis situation, their event will be announced immediately with a prominent press release. The presence of Cornell and the floorless convertible is a complicating factor, but I'm not familiar enough with these to really make an educated guess as to the effect it might have. On the plus side, we know that Cobalis directors can't sell any of their shares, so this removes one potential upside barrier. But I'm not sure what Cornell has in mind as a strategy. They could just sit tight and let the stock explode to the upside, figuring they can convert at 0.99 cents anytime they want. Or they could conceivably try to pull a fast one. I really don't have any previous experience with companies burdened by a floorless convertible, so I'd only be guessing.
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