Yesterday we had again a high quote of shortselling, nearly 10% !
Have a look at the following link, this is updated every day: http://www.asx.com.au/data/shortsell.txt
And this leads us to the question: Why should someone short Biota ? A company that is without a doubt massively undervalued and that has the best perspectives (Relenza, Lani, Global Pandemic) for a rising shareprice ? Any why in such a great amount ? And why again and again ? If this were small shareholders they would usually give in if it didnt work, cos it costs a lot of money...
To me the answer is simple: Takeover.
Since months we had seen that the sp was manipulated massively by bots, now we have massive shortselling. For me the only reasonable explanation is a planned takeover.
And it would make sense: Instead of paying massive milestone-payments and hundreds of millions of royalties for Lani, you could buy this company today for a discount-price. Its still so cheap - and when you see that a takeover would include future Relenza-royalties, it would be more or less for free.
IF there will be a takeover-offer, I hope that all sharholders will be aware of what the realistic shareprice of this company should be !!
This company is still undervalued massively and imho most analysts are talking the shareprice down by predicting that only a part of the 190 millionen courses of Relenza will be sold next year, which is absurd.
But imho its A FACT that the 190 million units are a realistic figure that will be SOLD ! And thats also what the WALLSTREET JOURNAL says - have a look todays story: http://online.wsj.com/article/SB125503764592374389.html?mod=WSJ_hpp_LEFTTopStories
"When swine flu surfaced in Mexico and the U.S. in April, Glaxo quickly shifted gears. It says it asked governments how much Relenza they needed, and switched on spare factories to churn out more. It also started building new production lines with the aim of tripling overall Relenza production, to more than 190 million packs a year."
Only with these sales the sp should be at $4.
I hope Im wrong with the planned takeover, but I guess I could be right.
Best regards from Germany
Eric
BTA Price at posting:
$2.95 Sentiment: Hold Disclosure: Held