MSB Trading 2021 - paradigm shift, page-1500

Not short of a profit
.
Although MSB’s share price has recently risen, the shorter’s remain in control. Suspect this will be the case until MSB’s SP reaches $3.10.
.
Short positions have fallen from 60.5m on 22 January 2021 to approximately 51m shares as of today (assumes 2.8m short positions have closed from 1/2/2021). The degenerates Reddit movement most likely triggered the closing of these short positions. Therefore, there is a risk the SP will move lower if those positions are quickly re-added.
.
The table below shows the short’s profitability. At today’s price of $2.61 the shorter’s are making approximately $29m (excluding transaction and holding costs). At $3.10 they become breakeven.

.

.
ADR closed
.
ADR positions are being closed. Recent movements:
.

• ADR’s increased from sub 10m on 30/04/2020 to 14.2m on19/08/2020.
• ADR’s then increased to 14.7m on 8/10/2020
• More recently ADR’s decreased to 14.1m on 01/02/2021

.
No news is good news.
.
Although unrealistic, I would be happy if MSB made no price sensitive announcement until April. Historically MSB SP has performed better when no news was released. Shorter’s require negative news to drive the SP down and MSB has over delivered on negative news recently.

.
Long-Covid follow-up will conclude in December 2021 (10 months in biotech is a short period of time). Data might be released early January 2022.
.