Avid Bioservices Inc (CDMO)

[Big On Tarvy]

“n-o-b-o-d-y is stepping in on what you must feel is an unbelievable buying opportunity. From what you hear, why is that?”

I have probed on this topic. Management understands that serious buying won’t happen until the science is actually confirmed and endorsed by independent third parties. That could have happened last spring if a fairly-priced partnership could have closed. Instead, we have to wait for R&R analyst report, closing of DTRA $44M alliance, CHAVI primate data and/or Bavi Ph II clinical data.

The more interesting question is who is behind all the selling. As far as I can tell the Company doesn’t know the answer to this question any better than you or I.
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Here is my personal speculation. It’s purely a guess. I think the shorts or other sellers are very aware that the Company has to file its preliminary proxy statement by end of this week, i.e. 110 days after fiscal year end. That statement is almost certainly going to disclose a proposal to increase the authorized stock by XX? million shares. I think the shorts and their allies figure they have one last shot to shake the tree good and hard this week and next and induce panic selling if they can. Any longs who are still left standing in September have earned the right to enjoy the uphill ride that will follow this fall.