Replies to post #20231 on Avid Bioservices Inc (CDMO)

[MobyInvestor]

K.T.,

I suppose Peregrine could pay R&R to be one of their market makers, but why would they? You only need a minimum of two MM's in order to maintain NASDAQ listing requirements and there's already 19 MM's listed for Peregrine.

The only other reason I can think of would be to provide sufficient trading liquidity. But, R&R isn't listed in the top ten liquidity providers and of those, 7 trade PPHM.

Unless there's some other reason, I doubt that's the kind of service R&R would be providing to Peregrine. Makes more sense to me that management needs something more traditional when it comes IB services, like M&A or raising capital.

Regards,

moby

[MobyInvestor]

K.T.,

I don't know either for certain other than to say that if there is anyone still holding some or all of those shares it isn't a 5% holder or an institution due to the lack of SEC filings.

As far as cost-averaging the placement, I guess anything's possible, but why would R&R do that? According to the 10-K Peregrine sold all the shares so that would mean R&R had to have bought them for $0.75/share, right?

So, that also would mean they sold them at a lower price. So, how can they do that without taking a loss?

Regards,

moby

[MobyInvestor]

K.T.,

If you've got some ideas on how to use volume and short interest more effectively, I'd love to hear them.

When it comes to volume I don't see much more value then looking at how few shares trade per day and what the daily average is. If it's too thin then the risk to me is in not being able to sell my shares when I wanted to.

Other than that, you've got a lump sum number each day that doesn't tell me how much of it was buying, selling, shorting or covering.

Short interest? Shorting occurs every day, right? So, how much value is there in a number that only comes out every couple of weeks and is delayed on top of it?

Same thing when it comes to institutional numbers, talk about a total joke.

To me the only thing that really matters is the price and that takes me back to my question; why would someone who's got the resources to buy a large part of, if not all 30 million shares let their investment drop in value by almost 50%?

Seriously, someone doesn't accumulate that kind of money by making stupid bets, do they? So, what can they possibly gain by letting the price drop so much?

Regards,

moby