AVNR...my thoughts on your questions: (I really don't have a good answer, no one does, just giving you my thoughts)
1) Retail hedging their bets. Most people do not think that this will get approved because of the FDA's recent tough stance in October. The FDA has been consistent all year. Pharma companies have to do what is asked of them. The old way of business as usual does not cut it these days. The retail joe investor does not get that. A lot of people play the run-up and get out as well.
2) Same as #1 pretty much. People don't think that it will be approved so they are shorting it in the event it does not get approved. If it gets approved they will have to cover their position on 20% of the float as well as the demand in shares investors will want because of their increase market cap on approval.
I saw this same thing happen with SOMX (somaxon) before Silenor was approved and the shorts paid dearly.
If you are not nervous, then you are not human:) I am nervous on all these plays because I am not the one in the room with a say on approval. I try to eliminate the nerves by knowing as much as I can before I invest my hard earned money in them. That is why I don't play them all and only the ones that have the best chance at approval. I focus on the data mainly and not on the sell off and short interest. Those things will take care of themselves if the drug gets approved.
Message in reply to:
Sheff, two things.
1. What,s your opinion regarding recent sell off.
2. Very high short interest?
These sort of the things are making new investor like me little bit nervous even if i am long avnr 7000 shares.
Any thoughts Please?
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