Replies to post #50606 on Ayala Pharmaceuticals Inc (ADXS)

[CATTDOGG12347]

Not sure increasing short position at this level makes any sense whatsoever.

[polaco3us]

This guys do have money to burn ...

Go Zen
Cheers

[maplestory]

Relentless shorts

[tx_farmer]

Juno had a pretty high short interest:

http://www.nasdaq.com/symbol/juno/short-interest

Shares Short 8.61M
Short Ratio 2.6
Short % of Float 9.85%
As of 12/15/2017

[Simple Steve]

Short interest is up? Posters here say shorts are covering on these dips? How are those two things reconciled? How can people short at this level? Appears to me that we have bottomed out, fingers crossed.

[biotech2]

I guess it took 750,000 shares of additional shorts to keep price fixed at $3, THOUGHTS ????..................

[DewDiligence]

Contrary to almost everyone here, I pay little if any attention to changes in the short interest.

Some of my most productive biotech investments have had large short positions (e.g. RVNC).

[ubmmg]

Short interest up by 751,352.

The fact I'm puzzled by that increase in SI would be understatement. Why this spike when we thought it would continue to drop as the news are about to start pouring in? I'm scratching my head and trying to come up with some plausible explanations.
Explanation 1: The shorts are expecting a capital raise soon. And, they are looking for shares offered at a hefty discount from the current levels. The company is getting closer to a dangerous zone and a fuel gauge is rapidly approaching E. Is the company desperate enough now to run a secondary at, say, 25% discount? I do not mind raising cash via a secondary provided the vast majority of the shares end up with some institutions that would not sell for at least couple years. The shorts get almost nothing to cover. That would be an ideal scenario to raise $40 to $50 at ~$2.50. We might actually start going up as the cash issues would be resolved until some milestones are hit.
Explanation 2: There is something stinky going on behind the closed doors. We, retail pissants, are the last to know. The hedge funds know/smell something bad and ramping up their short positions. Once the news leaks, they would attack and then cover sub $2. What news? Who the hell knows, could be something withe the trials, with partners, with CEO, with anything. No way of knowing if you are not insider.
Explanation 3: Since the company made some moves (4 franchises) with a clear intent to sell/partner some of the franchises, and nothing has happened in a few long months, the shorts believe the company is simply unable to do anything. Which might or might not be correct. I am personally lost count of mornings when I check for any positive news and there is nada. The silence is just killing. Killing us and the share price.
You can come up with more reasons for this SI rise. You may dismiss this increase, however, I do not feel comfortable with this short interest rising towards 9M mark.
@wmtgreeter