I would like to add to the conversation based on my opinion (extremely positive) as to the shorts position.
This will be a little bit a winding background path to get to the short's position
My assumptions are based on my belief, backed up by the terms of the Sanofi Wearable contract, other signed contracts and my belief that UNIS are all vital to the Pharmas for getting their most modern bio drugs into the body.
On sale of UNIS there were clauses (somewhere in company articles) that stated that contracts could be cancelled (unsure if they still exist).
However, regardless Sanofi for one cannot afford for UNIS to fall into hostile hands, and similarly I believe that the other Pharma's are realising their position if say Sanofi took control, and so I don't for 1 minute doubt that there are not multiple expressions of interest.
Nicalou, gave a good account of the shorts strategy and I believe that holds, so long as the shorts lender (lets say for example) JP Morgan Chase (JPMC) our largest Institutional Investor, who IMO must be heavily involved in the Shorting and their equal Head of the fund just left and joined AbbVie after advising AbbVie on many of their Bio Pharma's takeovers.
I'll get there, just bear with me.
JPMC has analysist following many of the Bio Pharma's and so they are extremely well informed and if you 'look up' who are the Institutional owners of the Bio Industry Pharmas and UNIS customers you will find them well represented.
IMO , UNIS has had flawless (except for the launch and expected sales of the UniTract, which although the world's best could never compete, head on, against the likes of Becton Dicton).
And so we have company and CEO full of expectation of great things and announcements.
Along came Dr Ramin Mojdeh and as it eventuated a good part of BD's inventing scientists and changed the direction of UNIS.
No longer would they waste resources trying to flog a very low profit syringe. From now on UNIS would only direct resources to new technology, devises that had no competition, but devises that had to be developed, tested, proven and had ready customers that were prepared to put upfront money into the development.
So the years go by, we get allegations that our CEO is a crook, that everything at UNIS is a sham, you know all the SA articles. Our own share holders consistently rubbishing the company.
Now Nicalou's article on shorting, IMO basically goes like this.
A company own UNIS shares and someone would like to 'borrow them' and force the share price down by flooding the market with sales, with the hope of buying them back later at a much cheaper price and therefore make a profit.
The lender gets a transaction fee and interest on the cost of the borrowed shares.
The borrower can take out insurance from the lender and in return for foregoing the first 20% profit on a falling share price is protected by a maximum loss of 20% on a surging share price.
The downside for the lender is that if the surge is huge enough, they will have to 'Cover' (hand in) their original shares and therefore they no longer own them.
Now this normally doesn't matter. They have no love for the company or stock. Its just a game, but here is the kicker.
What if that stock was an Apple, a MicroSoft, a Google, a Amazon, you get the picture they have throw out the 'baby with the bath water'
What if that company is UNIS-- that has signed a master Franchise with Sanofi that, in effect, will virtually funnel all future new Bio drugs to Sanofi because now only Sanofi has the ability to get their new Bio drug, through clinical trials, FDA approval and world wide marketing.
AbbVie and other have just been sidelined "BIG TIME", as at this stage not able to get any Bio drug requiring, the most advanced wearable to market. NOT EVEN THEIR OWN.
The whole industry has been stuffed big time-- all except Sanofi.
Now what if UNIS announces the Imperium Wearable that combined with Dexcom continuous blood glucose level monitor, able to be combined together and with the interest of Google and Sanofi.
The shorts have screwed us, but in reality they have screwed themselves.
We will wait and see.
ALL in my opinion, but its interesting.
I just love it.
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