My suspicion around the selldown of some of the growth stocks lately is possible short selling by fundies (the likes of Regal). Since Regal came out on in SOHN Conference on 25 Nov 19 cautioning about "biotech" stocks naming PPANC an acronym he (Phil King) used to describe the companies listed below, these stocks have moved noticeably downwards despite a better overall market (XJO only down 8pts since 25 Nov). He acknowledged he had short positions in at least one of those stocks (PNV).
Firstly, I wouldn't class PNV, PME and NAN as being biotech stocks, they may be health sciences but not biotech. Secondly, this is why I said our equity market is being "mind-manipulated" by fundies - they declare their positions and others follow [and we have heard calls for long on APT, WBC, CSL] , the reality is that their position whether long or short is way lower (long) or higher (short) than when they make those calls public - so again following retailers are just doing their bidding.
Look at NXS - copped a 44% beating since the end of July downdraft- perhaps expectations gone ahead of itself but no one really honestly expects near term revenues, yet months before, NXS was slated to be a great biotech performer and a stock of the next decade by fundies themselves.
The big whales will eat us retailers- they would do anything to make up their numbers or losses. Shorting may not be illegal but it can have a discernable power to move markets in direction the shorters long for, just like J Capital did with Wisetech (WTC).
