Don’t worry, lads. It’s all paper gains, unless of course he worked out a collar by which he hedged his gains. But I doubt Martin is that diabolically genius. For now, his 2 million share position in KBIO will have to endure a true test that only a select few are able to pass: time.
He’s locked in for the next sixth month’s, unless he’ll need to forfeit the gains back to the company he’s trying to help. So, with about 70% of the float locked up by Martin and his friends, all Marty can do is acquire more shares under a different guise to effect a short squeeze. I think that’s precisely what is happening right now, with the stock at $40.
I told you to stop giving advice on this stock last week–because I knew this was possible. Within 6 months from now, the stock will likely be a fraction of where it is now. Nevertheless, with such a small float and chicanery afoot, don’t expect the bottom to drop out of this until Martin and his friends can affect maximum damage to those short.
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I’d tell him, “Enjoy your Gretzky house while it lasts, Mr. Dyksra. It never does…”
It COULD happen to a nicer guy.
Does this guy and his “fuckery” remind you of Jay Gould?
Haven’t been following this … Reader’s Digest version anyone?
* Company priced for bankruptcy, becomes popular short.
* Shkreli buys a ton of shares, crowns himself Emperor of Biotech.
* Short squeeze of the year (decade?)
Porsche squeeze caused suicides.
Ahh. He’s that douche twerp who bought the drug company and raised prices a gazillion percent. Can’t imagine what he’s done with KaloBios hasn’t been attempted a billion times.
Very small float; 4.1M shares. I’ve looked at shorting it, but on top of the microfloat, IB’s fee is now >200% – that’s more than 1/2% per day to short the stock. Not to mention that you just don’t know when the price is going to collapse. It will eventually but it’s become too risky to even place a small short especially with the astronomical holding costs.
One area where the douchebag can make money is by loaning out his shares to short. IB pays 1/2 of its fees to clients who have unleveraged stock and sign up for the Stock Yield Enhancement Program. Through that program, if he loans out all of his holdings, he’d make more money than he spent on the shares, allowing him to buy more shares at high prices. I’ve noticed that the price keeps moving higher in the after/pre market where the trading’s very thin and easy to run up the stock price on a few hundred shares bought. That’s evil genius shit.
” …he’d make more money than he spent on the shares…”
That should read, “…he’d make more money in a week than he spent on acquiring the shares…”