I was awake at 6:20, but too lazy to hit the computer; don't know if I would have done anything, even though this disappointing price action is not a surprise. I'm thinking I wouldn't have done a thing, but wish I'd given myself the opportunity to think about it!
Shorts typically do not panic, especially seasoned shorts who play biotech. A few of the less experienced shorts probably covered early. I wouldn't be suprirised if many of them are just now finding out what the company does! Okay, that's probably an exaggeration, but many short biotech blindly; however, they do know how to trade and what to do when things don't go their way. And their buddies in the financial media and blogoshpere know how to play it, too. The shift in the attacks from trial results to market cap, FDA approval and eventual success was the correct move.
The hit pieces will continue, after all, there are plenty of shorts out there that do eventually need to cover. It will be interesting to see the change in the short interest next time that's published.
Partnership or buyout buzz will be the two things that keep this one going until next March, so hopefully there's plenty of that.
I will look forward to hearing some of our scientists comment substantively on the results.
