L…w…markets ran an article last week which identified ASX companies with rising “short bets” and then speculated on what the shorts’ reasoning was.
Neuren came in at No. 10. The suggested reason for the rising short position in NEU was that “It has a couple of clinical trials in the pipeline so perhaps traders are betting these won't prove such a success.”
I disagree with that explanation. Results for the leading trial in PMS are at least 2 years away so I doubt very much that shorters are piling in now for that reason.
Anticipation of a drift down in price because trial results are so far away? Perhaps. Expectations that quarterly sales expectations for DayBue won’t be met? Perhaps. Betting that Trump and Kennedy will come up with something that rains on Neuren’s parade? Perhaps. Hoping that NEU will be driven down and out of the ASX 200 so that they can make money on the trade? Perhaps. Acting on behalf of an interested acquirer who aims to concurrently dispirit shareholders and suppress the VWAP? Perhaps.
I really don’t know.
What I do know for sure is that if Neuren is serious about advancing full steam ahead with NNZ-2591 development and the market (and potential acquirers) can see that the Company doesn’t have sufficient funds to back up the narrative, watch the share price get beaten down.
NEU Price at posting:
$13.92 Sentiment: Hold Disclosure: Held
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