<<My gut feeling is that you'll see the MM's step back and let it drop like a rock next week, especially after the Viagra announcement is made.>>
Yes, MM generally will take a position, long in this case with the intent of pushing the price higher through dealer swaps and price mark-ups. These guys have the ultimate heard mentality, so that there is a bandwagon effect of all MM doing the same thing. In the last 2 weeks, they were effective is squeezing some of the shorts. This can probably be confirmed by the short interest when the numbers come out. My experience is that the shorts don't go away, but come back at higher prices for a better ride. With the exception of drug sales in Mexico, nothing has changed for Vasomax in the US. Sales of Vasomax will no doubt bring in some money to ZONA, but that amount isn't a pill for pill sale in the US or UK. In general, drugs are priced like movies. They will change their prices to capture as much as possible. I find that drugs in Mexico and Latin America, and in most third world countries to be cheaper than drugs in the US, UK and Europe.
Anyway, when the MM decide to let the price go and make a few dollars on the short side, watch out below because they have momentum on their side and they have the ability to short on downticks.
Look at the price action on AVNT from 19 to 13, and then back up to 19. Nothing has changed fundamentally, except that the trail dates are now closer. I doubt getting closer to a trail where the outcome is unknown is a good thing. Especially when there is a criminal trail approaching.
Chester |
