The Shorting of Frauds, Overhyped and Bankrupt Stocks Journal

Chuck Krug said:
KBIO at 11 premarket
-75% from November high
More...
Looks like they will get delisted
http://www.zerohedge.com/news/2015-...gging-campaign-fund-margin-call-was-right-kal

It will probably collapse. Thing is, at bellow $7 a share, I belive the stock is a buy. I say this even though I hated it at $2 and ended up losing a bunch when it squeezed. I estimate they raised $15m in cash between the equity offering and the insider sale (which happened in less than 6 months of acquiring the stake, which according to SEC rules, means the guy needs to turn over the profit back to the company). So they got plenty of money to run the trials. If they trial sucks, stock is a $0, if it doesn't, this thing will rip back above $30, potentially over $50. Its going to be even more illiquid in the OTC market. Anyone short will get squeezed out of his mind if there is good news

Shkreli might be a douche (and I think there was some illegality going on with his friends buying up stocks and selling in less than 6 months) but he does have a good record of doing these sorts of low risk high reward situations. Even if he is out, he is still a shareholder and might influence the company. I'm sure he will be involved in choosing the CEO
 
At mid single digits it will be like owning an call option on a lot of things, good trial news, ok news that lead to squeezes, random run-ups of former runner stocks, someone pumping on SA to screw the shorts etc. And the cash per share limits the downside for like 1 year or so
 
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Good analysis Daal.
I'm sad to say that I'm not short KBIO.
Every time Interactive emailed me that they had shares, they were gone in a second.
 
JJ, Interactive had some on at least 2 occasions (24/11 and 27/11). But it was on a first-come first-serve basis. And I was too late.
 
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