Friday, May 11, 2007
Asshat of the Week Award: Banc of America
In an unprescedented move, "The Fly" is awarding an entire bank one big fucking asshat award-- for hiring William Ho, analyst from Piper Jaffrey.In short, Banc of America wooed William Ho, from "Piker Jackme," back in 2006. As a result, Mr. Ho released this gem, on April 24th, 2007:
Dendreon: Provenge approval likely as politics is a factor; efficacy a question - BofA (16.78 ) -Update : Banc of America anticipates an approval decision on Provenge by May 15th, under the condition of completing the Ph III IMPACT trial, and expect potential stock price appreciation in the near term. They understand that DNDN is well prepared for a potential launch and believe Provenge can be out on the market by late 2007. If approved, the firm sees potential upside to their price tgt to $29 (current tgt is $20), and if an approvable letter is received potential downside to $6.Asshat!
Although Mr. Ho tried to check his bullishness for DNDN with a cautionary $6 downside target, it is obvious he was drinking the DNDN beer.
Since then, the stock is down an amazing 70%, inside 3 weeks.
Hence, BofA deserves the "Asshat of the Week Award," for hiring William Ho, who just destroyed their entire biotechnology research department.
Nice.
Comments:
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Good award. After my experience last year with NBIX I swore never to buy another small Biotech and I haven't. Off to an NCAA golf tournament at Reynolds Plantation and then a caddy job for a US Open qualifier.
Mr. Ho got pimped.
DNDN is killing shorts today. Something tells me this sees double digits in a week or 2. Shorts are going to tramble each other trying to book profits.
DNDN is killing shorts today. Something tells me this sees double digits in a week or 2. Shorts are going to tramble each other trying to book profits.
mdawsz,
In order to book profits, shorts have to cover, correct ? To cover they need to buy back stock, correct ? In order to buy back stock they are effectively bidding up the price, correct ? DNDN has a short postion of 50% give or take 10% ? Longs who are currently holding the stock and have done so since the plunge are (stupid)stubborn in their refusal to sell.So that leaves us with the question, who are shorts going to buy back the stock from ?
Never overestimate the desire of traders to book profits and never underestimate the stubborness of traders to hold on to a losing position. What you have is a perfect recipe for a short squeeze. Shorts are eager to cash in their profits while the longs are holding on stubbornly hoping this will see $20 again(never).
In order to book profits, shorts have to cover, correct ? To cover they need to buy back stock, correct ? In order to buy back stock they are effectively bidding up the price, correct ? DNDN has a short postion of 50% give or take 10% ? Longs who are currently holding the stock and have done so since the plunge are (stupid)stubborn in their refusal to sell.So that leaves us with the question, who are shorts going to buy back the stock from ?
Never overestimate the desire of traders to book profits and never underestimate the stubborness of traders to hold on to a losing position. What you have is a perfect recipe for a short squeeze. Shorts are eager to cash in their profits while the longs are holding on stubbornly hoping this will see $20 again(never).
im, the stock traded 272M shares since the gap down on Wednesday. This is more than 3x the shares outstanding. How can you conclude that shorts have not covered? Please 'splain me to that.
# posted by 
: 2:30 PM
: 2:30 PM
Indeed, I'll buy that not all shorts have covered, but c'mon to say that shorts are getting burned is nutty.
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# posted by : 2:33 PM
: 2:33 PM << Home
