Dan,
Thanks for a response in 1000 words or less.
Now,
The stock market isn't always rational and stocks can trade to unreasonable prices in the short term. Who would have thought that investors would push VPHM from $5 to $110
or CIEN from $8 to $170? The market is entirely nuts at times and it is possible that GUMM could trade to 50 or 60 if the clinical studies are published in a reputable journal
and backed by a reputable researcher. The short interest in GUMM was up to 1.2 million shares as of February and I suspect that it is even higher now. If good news is released and John Q Public gets behind the stock, anyone that is short could get screwed royally. The question is at what price would people offer to sell stock if short and new longs are jumping over each other to buy the stock. I'm not saying this to scare anyone. I'm saying it in all honesty and sincerely hope that nobody gets hurt too badly IF it happens. I don't know for a fact that it will happen, but I suspect that it will. Where else are the clinical results that were due in October 99?
Let's review your paragraph.
First:
The stock market isn't always rational and stocks can trade to unreasonable prices in the short term. Who would have thought that investors would push VPHM from $5 to $110
or CIEN from $8 to $170?
As you know (I hope), stock prices rise and fall on hope of a ROI. Tech stocks seem to offer more of a ROI than most, so
they rise and fall more than most.
I can see how you can use VPHM as a comparison to GUMM, even though I don't remotely consider GUMM to be a "biotech".
But CIEN? What does a telecom company have to do with a chewing gum company?
Check DGIL for a recent mover. So what?
The market is entirely nuts at times and it is possible that GUMM could trade to 50 or 60 if the clinical studies are published in a reputable journal and backed by a reputable researcher.
This is the same claim that has been made many times. IMHO, there will be no study published by any reputable journal.
GUMM screwed up the best chance they had, and it was a second rate publication at best.
If good news is released and John Q Public gets behind the stock, anyone that is short could get screwed royally.
I am only short a very small percentage of my portfolio. This stock could go to 100 and I would not be hurt. Other than my feelings, for making a wrong call. I don't believe anyone that uses shorting as a tool risks more than a small percentage in any one position.
You shills are the only ones that seem to risk big positions.
There are a lot of ifs, ands, or buts in your post, but I feel I am becoming too windy, like most of your posts.
You can consider this my last post on the subject, since all of the facts have been stated many, many, many times.
Have fun,
Phil |
