Avid Bioservices Inc (CDMO)

[senrex]

Terry, you remarked, "Why the PPS dropped because of this deal not panning out I don't know." I don't believe the sell off is related directly to the DTRA. I think it can be accounted for with two reasons: (1) A "last straw" for management reaction. Their pumping of the DTRA contract (even expanding the original $ in the CC of a week ago) indicates they were relying on this avenue for getting the word out about Bavi -- something that they seemingly can't get accomplished through normal channels on the Street. Actually, my guess is that Wall Street knows about Bavi but also realizes that the management and BOD, due to incompetence (which can be documented) will need to turn over the drug for almost nothing. (2) There is probably shorting going on at these levels because they want to speed up the process. They see that the PPS of PPHM places the company in desperate straits. This news gives them the opportunity. I'm not even certain that good data on Bavi Phase II will help the PPS that much: once the Wall Street boys see incompetence, they will capitalize (literally) on it -- right to the end. How? By ignoring the news OR by continuing to short it at these levels (and THEY have the ability to do it). This will be the last straw for the long-suffering longs (who are retail shareholders) and they will begin to sell and drift away.

Time now is definitely on their side.