Replies to post #221263 on Biotech Values

[dangerM]

This is mad.

I did not find any company specific news, except that a multi-billionaire sank some 2.5mn more into it*, which together with the history and past performance** rather reminds me of Keryx and Baupost, or generally: throwing good money after bad money.

Still, genereally, in the last few months I more and more wonder what part of the quirky behaviour of some stocks can be attributed to portfolio/quant investment approaches or something as mundane as pairs trading****.




* https://www.sec.gov/Archives/edgar/data/1641489/000156459018023807/vtvt-8k_20180927.htm

**

Perelman’s overall ownership of vTv stands at about 80%, including convertible class B shares and his investment vehicle MacAndrews & Forbes. In a script familiar to anyone following Perelman’s ongoing buys of Revlon stock, he’s been buying the publicly traded vTv shares on the way down.
https://www.barrons.com/articles/revlons-ron-perelman-buys-more-biotech-stock-1514483269

*** such as "Betting against Beta"
https://breakingdownfinance.com/trading-strategies/betting-against-beta-bab/

**** e.g., just compare the stock price chart for BLCM and KDS for the first half of September, I think I had already written a bit about that (why I do _not_ belive KDS to receive a positive CHMP opinion). However, one can really see how BLCM tanks while KDS share price tremendously increased. Funnily enough, people aren't reading the timetables/agendas carefully enough, so one can also see things that should not happen.

[DewDiligence]

VTVT—After all the buildup (including a quadrupling of the stock price)...we get this:

https://finance.yahoo.com/news/vtv-therapeutics-presents-positive-data-130000789.html

The data presented at the conference included post-hoc, positive data indicating a potential benefit of treatment with azeliragon in AD patients with type 2 diabetes. It is estimated that nearly 40 percent of Medicare beneficiaries age 65 and older with dementia also have diabetes...

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