Conference Call - Closing PointsA happy ending to yesterday’s conference call story would have Dudley Do-Right bursting onto the scene at the end to save pure maiden Oncolytics from the evil M1. I did not write Dudley into the script so as not to detract attention from key points. To Sharkfood’s annoyance, I will recap them before going on with why M1 is so scared of the current rally. The wheels of the manipulation are falling off.
Recap of the reasons that the wheels are falling off from the call:
1. M1’s scam is fully understood by the Board and the long term risk of an undervalued take over is identified.
2. The Board is aware of both pumpers and gripers. In the past, gripers got a free ride.
3. Managing the stock price to the margin level is legal and supported by institutional investors. They have positive cash flow to invest and have the business savvy to acquire shares at a rate to reflect the stock’s trading liquidity.
4. Managing the stock price above the margin level requires collusion which requires crossing the line. You do not need to have the smartest sheriff in town to investigate a blatant take over and identify the usual suspects.
5. The importance of margin buying for retail investors is identified.
6. My harping to retail investors to hold and not sell is seen as a problem.
7. The link between the current stock price and the current joke of a market cap valuation is repeated.
8. The counter ploy of the manipulators is to ignore/discredit Geminin, and bring up other subjects. Dampen the rally by selling.
9. M1 was concerned about the current stock price and wanted it pushed back.
Let me pick up on the last point and comment on M8’s reply. M8 said stalling the rally is not a problem and pushing back the price is possible.
The current rally is a threat to M1 because of the risk of loosing control. Loosing control is defined as the stock price spiking upwards. A $1/2 billion market cap is reasonable and requires a stock price above $7. A spike to $7 can transform Oncolytics from an ugly duckling to market darling. The stock could soar above $10 and still be viewed as a fair. My definition of fair is when I am indifferent as whether to buy or sell. I will buying up to $10 without loosing sleep.
The stock will move based on the demand to supply equation. Holding cuts supply and there is no reason to consider selling until the correction is fully reflected. Demand is building. With the price above $3.50, there is a cushion to buy on margin. Some readers will take advantage of margin and have the leverage room to push the stock price up.
More momentum will come from new retail investors, the opportunists. I imagine that that many opportunists have stock filters to monitor situations of increasing volume with increasing price to participate in a short term feeding frenzies. In the past, they would read about doom and gloom, and general griping on the Board. More important was the stock price did not support margin buying. The world today has Oncolytics set up for a feeding frenzy.
A spike in the stock price will cause institutional investors to change their strategy. They can not afford to wait. It is becomes a race to be early in to pick up the easy money. They will buy in big blocks.
Sum the impact of margin buying as a stimulus and you realize why M1’s pants can be wet.
As for attempts to counter the rally, the manipulators tried yesterday. It was a perfect day for them and not an accident. Doug Ball was presenting in NY at Rodman Conference. As I identified in my earlier post, their counter fell short. The market did not follow their early morning lead and they fired their second shot at the close. Investors are not being deceived. This mornings’ early activity indicates that the manipulators are having problems reversing the rally. Sharkfood’s posts are not worth a reply from me. You can guess my opinion.
Let the rally continue! The stock price has to move to support a realistic valuation. Don’t sell. Enjoy the ride.