Tubbyguts  Posters are actually highlighting a perfectly valid...

Tubbyguts  Posters are actually highlighting a perfectly valid point about short activity. Let me help you understand. Average daily volume in MSB is 1.79m according to the Financial Times. As at the 28/9/18 the short position of the Company was 26,209,748 having risen from 11,398,264 at the beginning of January. By the end of November it has risen to 33,506,496 against a total number of shares in issue of 497,365,913. it is noteworthy that, according to the the bull.com.au, Mesoblast has just entered the TOP 30 most shorted stocks in the ASX. I doubt if it is anywhere as liquid as many of the other names on that list, so if/when this stock turns it will be fun to watch. On average 92,000 shares are cumulatively shorted each trading day since January 2nd 2018.

Normally a stock would be able to absorb these percentages of daily volume...but when the price is in a downward trend, the shorters massively increase their activity on good news days to account for a substantial percentage of shares traded to prevent a new upward trend emerging which will draw in buyers. 

So why should shareholders be concerned? Quite simply MSB burns cash during its development phase. Shorters generally like to pressure such stock prices down regardless of progress in clinical trials  because they know a Company will dilute shareholders each time it does a capital raise. If Mesoblast is able to conclude a global partnership deal for one of its blockbuster applications I will laugh my head off. These barstools had it coming !!!