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Simple. The stock gapped up on very high volume on 2-16, 2-17, 2-18, and 2-22-2000. My bet is that this was in large part due to short covering. The stock has plateaued around $14 on much less volume, and may be supported at these levels by some short covering, as well. This may cause the uninformed to come in and buy in the current "biotech mania" climate we are seeing, which may boost the price a few dollars more. At this point the shorts will bang the stock again hard. With the cash burn rate that this company has, plus the admitted need for capital, the potential dilution that will ensue, plus not much in the way of revenues or a near term pipeline, it has got "short seller's dream" written all over it. As of Feb. 8, some 25% of the float was short. That has undoubtedly fallen as the price has gapped up. But one thing is for sure...this one is on their list to "re-visit." |
