Replies to post #34118 on Ayala Pharmaceuticals Inc (ADXS)

[ignatiusrielly35]

mpre, it is basic supply and demand. If the net selling vs. buying is positive, then the shares get covered. The whole point of a take down is to induce selling. If the point was simply to short additional shares then they would do that in the least obtrusive way possible, because they'd obviously want to short more shares at the highest prices possible. In that event, they would walk it down in steps. Short, wait for buying, short, wait for buying, etc. By intentionally crashing the stock all at once their ultimate goal is not to increase their short position, it is to induce selling so that they can decrease it.

[Easymoneyman00]

There not covering. Maybe some but not enough to actually help them ! Short interest will be at a all time high once it reported!

[tinfoillurker]

So can someone explain to me how this short attack, if that's what it is, is enabling shorts to cover?

Someone needs to sell you a share in order to have a share to cover. If you induce panic/selling, then you're creating those sellers for yourself to buy from and using their shares to cover. That's how it works under normal circumstances.

These are not normal circumstances. This short entity has maintained 10M shares short for 2 years, give or take some as needed to bully the price. But it invariably always comes back to that 10M amount.

People will tell you that they're covering, or that they're shorting more. This has proven to be false time, time, and time again. The short entity is clearly fixated on holding 10M shares short and playing a few hundred thousand on either side to scalp a few cents off every trade that isn't made by them -- they give the price a nudge in either direction using HFT and then either short into your buy on the way up, or buy into your sale on the way down. The lack of true buying demand means they can do this with impunity and with no risk.

Today is the last day of this short interest reporting period. I expect we'll see the short interest around 10.25-10.75M for this go-around. I expect we'll see a low volume run-up leading into the European conference in early November, during which short interest will drop back near 10M or just underneath.

Then we'll see another drop after that conference, or 10M shares issued by the company near $5.00. It could also be a combination of the two, or even something outlandish like issuing the shares near $5.00 when the market price is below that, which would be an apparent signal that shares are being bought at a premium to market (how exciting).

[Gantor50]

Mp, personally I am not convinced they are covering. But obviously we need to see the reporting to figure out what happened.

During the June attack where we saw 28+M shares in volume over a month of trading, shorts increased their position from 8M back to 10M. They had covered from 10M to 8M in the months leading up to Investor Day, and we saw a corresponding rise in price, albeit subtle. The rest of that June volume was mostly retail and day traders, with millions of shares being nothing more than HFT churning small blocks back and forth.

Even on this most recent attack, I am guessing the majority of the damage was done by shorts with probably about 500K shares shorted give or take. Shorts could have attacked starting Monday with naked shorting and then picked off the shares they needed for the borrow during the selloff they triggered. Just like the June attack, no doubt 50%-70% of the volume this week has been HFT churn

This is just a guess on my part until we see some validated numbers.

I still have no idea what the end game is here for the shorts. And I am also not sure what ADXS plan is to deliver "shareholder value." The only way ADXS can do that is to do something about the boat anchor shorts that are dragging all shareholders down, including the BOD and all employees of ADXS.

I am still not clear why DOC seemed somewhat oblivious (from the outside looking in) to the shorts impact on ADXS PPS when his core plan seemed to revolve around using the stock as currency to build ADXS into a standalone pharma.

Speculative Bios don't have the luxury anymore of just being about the science. They have to have some very sharp and good people on the payroll who know how to monitor and effectively manage their PPS.

JMO.

[attilathehunt]

The shorts are not covering. We can be at $0.50 and we would still be short millions of shares. One day the short interest will go "poof" offset with other long positions.

Until news we stay in this range ($4 to $6). Hopefully we hear something by end of month. Something needs to happen to explain all the one time $ spent last quarter.