Replies to post #40632 on Biotech Values

[friendofthedevil]

Reg SHO / TELK / ARTE

I posted this on the TELK mb last night. (My keyboard is better now.) It addresses how the proposed changes to Reg SHO could create a squeeze. ARTE doesn't seem like the kind of stock to worry about - unless they surprise with news. I don't see it.

http://www.vodiagroup.com/pdfs/RegSHO.pdf

They use TELK as an example. They give some data about how the market-makers handled the meltdown on Dec 26. They also note how the proposed changes might have limited the downside on that day. One thing I take from this is that the shareholder list is meaningless. Lehman was always a prominent shareholder, yet they likely held the largest short position.

fotd

[DewDiligence]

>With ARTE, just know that it is on the Reg SHO Threshold Securities list right now. With the new SEC proposal regarding market makers and this list, there may be funds that try to ride some of these names on the long side to create whatever kind of snowball effect upward that they can.<

I’m hoping they do exactly that. ARTE’s IPO price was drastically cut at the last minute (#msg-15703760). I want as much upward pressure as possible to get the share price into a good range for shorting in a few months. Regards, Dew

[DewDiligence]

ARTE – Ashland Partners filed SEC Form 144 to enable selling 54,700 restricted shares, presumably as soon as the IPO lockup expires. (Source: Dow Jones)