@stockrock I agree totally.. the shorters have taken out most trading on margin and all the stop losses left in the market to fuel the descent . I spoke to a fund manager friend yesterday who said the methods used by the shorters in this stock would probably be illegal if a long only fund was executing a buy order this way. What I believe he meant was that there is no time given for price discovery. By not setting appropriate order limits during the day they are not achieving best execution because they are not attempting to sell stock at the “best price “ .. rather their intention is to destroy the price . In my opinion the placing of eight separate sell orders of 1 share of MESO while the market was closed at 60% discount to underlying value amounts to potential “market abuse” .I also suspect that a number of funds are involved in this shakedown because they will need a lot of firepower to hold the price down when buyers come in at certain levels.
The shorters problem will come as the level of short positions reach relative highs and Mesoblast finally gets around to putting in its pre bla application for end stage heart . Then, in my opinion, the clocks starts ticking . If they get the go ahead from Marks/Verdun to apply for accelerated approval in the latter indication, they can more of less choose who they want to partner up with . The shorters meanwhile will probably cover themselves in the options market before all the mug punters realise they have been had. If I was running NASDAQ right now I would have market compliance all over this. False markets destroy pricing and undermine confidence… but they will not change the destiny of this company . The huge director buying is the signal all long term shareholders should be reflecting on today .. not the actions of the these shorting parasites . There timing is perfect because they could not have pulled this stunt off while Greg George was accumulating his main holding. They waited for weak market conditions and ambushed the retail investor.
Now you must decide if you are a victim or someone who will take advantage of the situation . Alternatively, there is no need to do anything as stockrock points out . These stomach churning gyrations are all par for the course . You only lose or make money when you come to sell the shares. Over the next 6-18 months , Mesoblast should be morphing from a high cash burn biotech into a commercial cash generating pharmaceutical company. When this transformation is complete the shares will become extremely attractive to more risk averse institutions. OP
Please do not rely on the facts or opinions expressed in the above post when making an investment decision. Be aware of trading during periods of high volatility in biotech stocks.
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