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Post by peppy on Sept 22, 2016 9:58:42 GMT -5
Watching MNKD trading this morning, www.nasdaq.com/symbol/mnkd/real-time 800,000 shares in 86 mins .70 + .01
The question, not that I want it to happen, just a question. Would delisting from the NASDAQ on to OTC make anyone need to cover MNKD short? Although baba pointed out the 1 dollar 2018 strike options are the cover.
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Post by gonetotown on Sept 22, 2016 10:25:25 GMT -5
Doubt it, delisting really means little more than moving to a different, less "respectable" trading board.
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Post by mnkdfann on Sept 22, 2016 10:28:03 GMT -5
It should not.
Other companies have delisted and moved to OTC, and that never caused their shorts any problems.
Besides, even if delisted from Nasdaq, MNKD still trades in Tel Aviv!
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Post by kbrion77 on Sept 22, 2016 10:36:56 GMT -5
Watching MNKD trading this morning, www.nasdaq.com/symbol/mnkd/real-time 800,000 shares in 86 mins .70 + .01
The question, not that I want it to happen, just a question. Would delisting from the NASDAQ on to OTC make anyone need to cover MNKD short? Although baba pointed out the 1 dollar 2018 strike options are the cover. No because you could still exit your short through pink sheets but I would say the risk of holding a short position could be a bit riskier. Long SEC halt or lower trading liquidity to exit are a few that might come to mind along with high borrowing rates. I think it's pretty clear that whoever the major short players are are betting the house on MNKD going bankrupt and have no desire or interest to exit their positions. I've said it and I'll continue to say it, buckle up folks.
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Post by matt on Sept 22, 2016 11:58:48 GMT -5
Doubt it, delisting really means little more than moving to a different, less "respectable" trading board. It is much worse to be an OTC stock. While it is true that the OTCBB is less respectable, there is also the matter of not being listed on a "national securities exchange" as that term is used. The only three exchanges that meet that criteria are the NYSE, AMEX, and NASDAQ and this is important because the SEC applies a different set of rules to companies on national exchanges because some of the regulatory oversight is assumed by the exchange listing qualifications panel. Having dealt with them personally, I can attest that the NASDAQ listing panel is a tough regulator. Also, most funds via their charter specify that they can only invest in securities traded on national exchanges, so if MNKD gets delisted those shares will get sold. For both those reasons, bid/ask spreads are larger and liquidity is reduced if the stock is listed on the OTC rather than NASDAQ.
If you think the MNKD share price is manipulated check out what happens to biotechs that lose their NASDAQ listing.
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