@maxybro More to the point. If you believe the share price rise to be unjustified (unlike the majority of serious analysts who follow the stock),....perhaps you would like to inform us what valuation you believe Mesoblast will achieve in the event that its trials achieve overwhelming efficacy for either CLBP or CHF ? I would agree the share price chart shows a parabolic move... but it is supported by substantial volume over a number of days. Let’s be honest here. If this Company announces headline results showing overwhelming efficacy in either prementioned blockbuster condition, the share price will almost certainly continue to rise parabolically ! Unless you telling me that only a $US1bn market cap is justified for a the first successful treatment for end stage heart failure or lower back pain !
I do not approve of shorting . Have you ever asked yourself ,why are institutions so keen to stock lend ? After all this practice unquestionably causes their own holdings to underperform. The answer lies in the regulator allowing them to participate in the fees associated with the stock lending . They have to share this income with their fund holders but with Total Regulated Expense Ratios under so much scrutiny they are happy to muddy their hands in this “service” to their clients to earn extra fees. I know many individual fund managers who objected to their holdings being lent out to shorters , but these objections are overruled by their superiors . This has all the makings of a massive industry malpractice suit. Hopefully, this whole exercise in self harm will put itself to the sword when the regulator finally steps in . There is no point relying on the exchanges . They like the added “liquidity” ... brought about by “high frequency trading” which makes them more fees. Indeed, HFT traders account for as much as 90% of Daily volumes in some stocks... and has been the principal cause of most “flash crashes” which have occurred in the market.
If market participants want insurance against a falling market, surely they can find other more general derivatives to provide them that protection. Cyber bullying and orchestrated shorting attacks have previously reared their ugly head with regards to Mesoblast. Next time one of you speaks to Silviu ask him about the man behind many short attacks on Mesoblast who is now in jail for fraud ! When you go long of a stock and you make money you do no harm to anyone but when you short a stock it is often at the expense of existing holders. There is a clear conflict of interest . As the owners of a company they should, in my opinion, be able to vote at an AGM to amend their articles to ban stock lending, so anyone wanting to own the shares would have to abide by this condition . I have had to sign these types of “negative pledge clauses” when I am part of investing syndicates and it is about time the market grew up and protected the interests of the private shareholder.
Lastly, some posters on this thread now want to criticise the remuneration of Professor Itescu. In relation to his performance options and pay ,the correct procedure has been followed and shareholders vote at each AGM to authorise the remuneration report. I find it amusing that shorters complain when they are not the owners of the Company. Shall I set your salary for you ? What a cheek!
I have now had the pleasure of meeting Silviu Itescu on several occasions. The more I meet him the more I admire his brilliance..... but in addition, he shows the character traits of extreme kindness, compassion and decency . He gave up a his job as a highly paid heart surgeon in the US to risk all developing a new frontier in medicine. I wish him every success. He is working with his mentor ,Professor Eric Rose of the Mount Sinai Hospital , who made history in 1984, when he performed the first successful paediatric heart transplant. I am not worthy to walk in the footprints of these incredibly talented human beings ... so I will instead wish them a very Happy Australia Day weekend instead. Just to throw in some virtue signalling, I wish all those families affected by the latest outbreak of the Coronavirus a speedy recovery. They will be in my thoughts and prayers.
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