Headache: "Biocurex's failure now would mean a lot of damaged credibility, and even ruined professional reputations and class actions.
I sometimes have my doubts about their management, but I don't think they are that stupid."
Biotechs have failures and product returns frequently. That is the reason you do not overexpose yourself to a single stock. You go for the averages, win some, lose some. When you hit one and do well, it will make up for several losers
Management obviously orchestrated these events that managed to sell about 6 million shares. The stock will return to where it was because no money was involved. The company is still in the same financial position it was before the hype. Are they stupid for doing this?
You can rest assured that if Abbott returns the test, Moro will go chapter and the investment here is worthless. At that point, do you really care about fallout? No, what is worse than being in charge of a failed company? What they do want is to hedge their bet and extract some money BEFORE an abbott deadline approaches. If Abbott pays the minimum royalties, great, everything is OK. All who bought stock this week are fine and management will do well by just giving themselves more shares. If Abbott hesitates and returns the test, management and their cronies have money in their pockets. It is called "risk management".
We have now obviously seen the end of the push. All the media hype is done, Lebed is gone, and volume is tapering off. What may be more telling than anything else is how far down they will sell into this hyped event. The other thing that is very clear now is that Management has a very significant element of doubt that Abbott will continue the deal or they would never have done this maneuver.
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