Post by
GoldenDilemma on Apr 05, 2017 11:19am
FYI
See, when you have a large bulk of institutions holding stock, they are already in. They own +/- right up to the 10% mark.
Their positions are locked and secured. Adding more creates a dynamic where they'd have to go into activist shareholder mode. Deerfield is the dominant force behind the company, essentially. They can narrate what goes on behind the scenes
When all these guys are long, all it takes is the shorts to hit the price each day. There is no one strong enough on the buy side simply because they are already locked in. The tutes that own ~45% are basically trapped and the average retail investor cannot afford to scale a war against the shorts that likely keep enough liquidity around to add more to their short position.
Then, when shorts cover, the price goes up and every retail shareholder and their neighbour thinks this is the reversal we've all been waiting for... to which the spike is then reshorted.
If you want to see how the stock behaves when shorts are not hanging around, go look what happened a month before Yosprala approval. Once it was approved, they were right back... because they know drug approval is irrelevant. The company is being discounted on their debt and the anticipated lack of success for the drugs they are acquiring. Now, the lack of success of Yosprala is more evident... but, go ahead and say "it'll get better in the future". How about: Wait until the results show it and then decide to go long?
The force behind this company is strong. Longs have no support to the share price. The shorts have, and will continue to have, full control until they have a reason to leave.
Anyone long in the name who is in la-la land over how great the future is:
- look at the chart from August 2015
- look at how the price has responded to the "great development" of ARLZ
- look to the forthcoming risk
It's your choice to "wait around and see what happens" in the future. Just like every other illiquid long who is getting fisted by short sellers.
The sheer naivety of ARLZ/CXRX/VRX/ etc etc etc longs is unfortunate. You guys really need to smell the other side of the story here rather than accelerating a loss and just sitting on the side lines "waiting to see what the future holds"
Just a thought, if the sales force is being reduced for Yosprala, what does that mean for their Canadian and European plans for approval?
Furthermore, now the focus is on Zontivity. The market will now evaluate that as such:
- costs to launch it
- show me the money of sales
Until then... let's hear the bull case again.
Comment by
2quick154 on Apr 05, 2017 2:05pm
I sold this morning at $2.74 on TSX. Took a loss which was painful considering I bought my TRX shares at $0.50 and they hit $2.30ish at one point. My greed cost me a lot of money, but lesson learned... have only been investing for a few years. Uses the money to buy more PLI.
Comment by
kuatolives on Apr 05, 2017 3:20pm
Go thank Goldman for his good work over on the seeking alpha board. According to him, the merger was a godsend.
Comment by
GoldenDilemma on Apr 06, 2017 10:43am
ARZ now worth what TRX YTD highs were! +/-
Comment by
kuatolives on Apr 06, 2017 11:34am
Unbelievable. I change my opinion. Harris was the only one who knew what he was doing. Of course, he absolutely robbed his shareholders, but he was the only one who came out ahead. This is hitting a buck. If anyone is left, get out.
Comment by
kuatolives on Apr 06, 2017 3:14pm
Well, my prediction of 1.50 before 2.00 turned out true.
Comment by
bobyback on Apr 06, 2017 3:19pm
DO you think this company still have potential? Should i invest at 2.00$? Im late in the news here Im invested in MBX.TO
Comment by
GoldenDilemma on Apr 06, 2017 3:21pm
Boby, prepare for a world of pain if coming to a message board asking others on what you should do with your money is how you go about doing things.
Comment by
bobyback on Apr 06, 2017 3:24pm
Thanks for the comment. I just dont understand the sell off. I dont think this Worth 2$ cad... but more
Comment by
GoldenDilemma on Apr 06, 2017 3:26pm
You gotta dig a bit deeper and read between the lines to understand the depreciation in names like ARLZ, CXRX, VRX, etc.
Comment by
kuatolives on Apr 06, 2017 6:34pm
Anybody still long here? Or have the lights gone out?
Comment by
kuatolives on Apr 06, 2017 9:43pm
If the thing hits a buck, there's no way I'd be confident enough to buy a single share. They would basically be redlining bankruptcy at that point. The dead cat bounce could come from 50 cents to 75 or something like that. The one dollar mark isn't magical in any way.
Comment by
GoldenDilemma on Apr 07, 2017 7:41am
Let's revisit this post and these words of yours after a disappointing Q1 readout. If you think emotional selling is what has bled this company out over 12+ months, think again.