Replies to post #52267 on Ayala Pharmaceuticals Inc (ADXS)

[blueyedcatch]

It took a major coordinated effort to kill the share price,and since Adage owns 4.1 million shares still they don`t want to kill it any lower,because it`s more difficult to get the stock back up over 3 if they were to go any lower than they already have. Keep in mind that there still is major short interest that needs to cover,and IMO it`ll happen when the news on the EU submission hits. Starting from this level they can cover and get back over the 5.20, and the stock will be fixed. In case anyone doesn`t know this,Dan sold 50k shares right at the 5.20 threshold to help break the stock down for Adage. He had taken almost 2 million shares and had to pay the tax man,so he killed two birds with one stone. Is he worried about the low share price? Obviously not with all the shares he still holds. He knows that Adage has this in their back pocket,and they`ll lift the stock when it`s time.

[Gantor50]

I don't know the exact answer to your question, but they did time their moves almost perfectly. They timed the crash to coincide with fiscal year end for most funds, followed by actual year end (additional retail tax selling).

I do know that if the speculative theory about Adage and friends is true, and if they actually do plan on running the PPS back up the flagpole at some point, they will keep some of their short shares remaining short until they are ready.

Then they will start covering a big chunk to start the run and as the volume surges and the chart is allowed to start repairing itself, they will begin to suck in all the retail and professional momentum traders. They will also time this in the hope that retail shorts then panic and start covering their shares and use that covering to add additional boost. Think of it as rocket fuel sitting on standby waiting for launch and they hold the match. What they are waiting for is some announcement by Advaxis that appears significant enough to justify the launch.

But for now that is just a speculative theory. We can only wait and see if this happens or not.

[ignatiusrielly35]

I think the short cartel was waiting for a good opportunity to take it down this low, the culmination of their premeditated plan from 2015. They timed it for tute rebalancing in September and took advantage of the question of how ADXS will raise capital as the backdrop. Take an uncertain situation and tank the stock in the midst of it to avoid any significant pushback, while scaring some shareholders out who just didn’t want to deal with the orchestrated decline any longer. The cartel probably also felt some pressure to get this over with because of the looming possibility of EMA approval.

[tinfoillurker]

Why they waited is actually very simple, I think. They could've done this much earlier as the chart was already largely broken by the time of the clinical hold. They could've done it all along. But they HFT'd the crap out of every cent on the way, including holding the price at several points to create the illusion of bottoms with the sole purpose of trapping buyers.

This is why I repeated many times several months ago that buying shares is literally handing them your money. Now that the price is this low that doesn't seem to be the case... Or is it another false bottom? Who knows.