ARIAD Pharmaceuticals Message Board

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Biotech / Medical : ARIAD Pharmaceuticals

ARIA 23.99

0.0%

Feb 17 4:00 PM EST

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To: tktom who wrote (4203)	4/24/2016 10:49:52 PM
From: flexinvesting	Read Replies (1) of 4474

TK....you ask a very good question that I can only answer with some speculation and also what I see in the changing short interest level along with daily price action as well. The following are some of my observations and thoughts which are the reasons why I used the term "controlled covering". 1. The shorts IMHO have never been retailers but mostly MM's in the know who are able to control the price action of the stock. I can not believe that the "big boys" would risk that type of a loss in a short squeeze thus they control it not worrying about being short overnight with the potential of news that would fuel an uncontrolled short squeeze with major losses 2. If you watch the Level II price action (Bid/Ask) on any given day, you can see the games with the same MM's refreshing their Bid/Ask's by jumping in whenever price is going higher with small orders over and over and over. Somehow (???), large buyers at higher levels are not coming in to make the price go higher (see below). 3. In the last short interest report the short's were reduced by 10% or so. To me this is "controlled covering" through 2 above. The next report will be out after 4PM on 4/26 and we will see if this pattern continues which of course is good for us retail longs. 4. I would be very interested in knowing the average short pps which I don't know how to obtain or even estimate. If anyone has any ideas in this area it would be great to know. Also, I would think that as the pps is increasing (past two months) it is in their best interest to maximize their position by covering (buying back) and as you pointed out as the covering occurs the pps has to increase (supply and demand) with the long's being back in control. Believe me, there are many mysteries here that I can only surmise and would love to have other options. I hate to use the work "manipulation" yet there are a lot of trading games going on here outside of pure supply and demand. Most of all, as JessPro keeps pointing out (on the other board), many, many institutions have and are increasing their positions which we know are long. Thanks for reading and again I would love to hear more opinions about the long/short and buy/ask gamesmanship going on. I have to think that there is sort of a wink/nod going on with the institutions which are definitely long (and accumulating at lower levels) AND the MM's who are playing the bid/ask in trying to get out of their short positions. Yet I am not sure of the advantages to the shorts at this point who are in a very precarious position withe the good news being released and large activist positions (i.e. Denner). IMHO

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