Kerry,
Thanks for your answer. Your explanation of a pre-arranged block trade of 337,000 shares at a fixed price ($1.5 million)seems very plausible. There are several entities who might have made that sale, including BTRN itself.
If the sale was totally "private", e.g., BTRN to a European fund, then that shouldn't affect the market much, right? But I wonder if the sale was not to someone like an MM or B/D, i.e. someone who would want to sell the shares themselves ASAP on the market.
That might help explain the stock's decline for the day / week. The MM was selling (probably shorting) lots of shares, and others may have noticed this and jumped on the bandwagon, also selling. Then with 15 minutes to close, the main MM has finished selling (and perhaps switched to buying,) and with the selling pressure off there's a closing rush to buy / cover, driving the price back up.
There are lots of other explanations involving more conspiracy and manipulation, but I know Gene doesn't favor MM manipulation theories, and the simplest explanation is probably best.
Thanks for your detective work on the sale, and what do you think of this scenario?
Doc
p.s. I wasn't expecting you to comment on the investment value of BTRN, the biotech experts who love/hate it have little clue (potentially great partnered drug, Medi 507, but...........) |
