Pharmasset Inc. (fka VRUS)

[surf1944]

Been short since the buyout offer at $133, really just staying short VRUS because I thought it was overpriced as many investors stated that GILD was overpaying. Today's news didn't appear to help the long side. I was also short INHX until this morning and if it wasn't for my INHX cover I may have covered VRUS. My shorts in biotech usually have little to do with how I believe in the pipeline of that company, it because I view the stock as overextended on the chart and an overpriced value given to them.


Why does the large arb spread (9.7% after today’s move) make you inclined to short? I would have thought it would have the opposite effect(the offer price may be revalued by the market)