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Post by traderdennis on Aug 20, 2018 13:00:38 GMT -5
Short in advance, knowing theyvmade a deal which will dilute the share price. Is this legal? Are they allowed to trade on inside information? I wouldn't be angry at Deerfield for making lots of money by lending money to risky investments, but I would be angry at them for making money illegally. (Yes I realize Deerfield doesn't care if I'm angry at them.) Deerfield can short at any time to hedge their loans. Bank of America had a long standing short to hedge a loan they provided to MNKD
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Post by traderdennis on Aug 20, 2018 13:02:45 GMT -5
They arbitrage. They sell short prior to accepting shares at a slightly higher average share price and then cover with the shares. It it also less risky to sell first and lock in the sales price, then cover with the shares for payment.
Arbitrage? Selling one day and then buying back days later is not arbitrage that's taking market risk.
Despite the actual filings, you are standing by your statement that Deerfield was short on 6/29/18? So the 13F filing on 6/30/18 saying they were long 1.46 million shares was false? Or is Deerfield just a fraud and can report whatever it wants?
And was the fact that MNKD was going to issue shares a secret between them and Deerfield? Of course not - anyone paying attention knew it was coming. It's obvious players in the market are shooting against predictable dilution events for MNKD for short term trades.
Head in the sand? Not quite yet, but heading to the beach next week ... we'll see
No requirement to net out shares. Net of 6 million short.
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Post by jred on Aug 20, 2018 13:08:24 GMT -5
Short in advance, knowing theyvmade a deal which will dilute the share price. Is this legal? Are they allowed to trade on inside information? I wouldn't be angry at Deerfield for making lots of money by lending money to risky investments, but I would be angry at them for making money illegally. (Yes I realize Deerfield doesn't care if I'm angry at them.) Actually it is illegal. It's SEC Rule 105 and they track it. Rule 105 update.
It prevents firms from selling a stock short within days of an issue to drive down the price and profit from them receiving new discounted shares from the company.
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Post by jred on Aug 20, 2018 13:31:29 GMT -5
Arbitrage? Selling one day and then buying back days later is not arbitrage that's taking market risk.
Despite the actual filings, you are standing by your statement that Deerfield was short on 6/29/18? So the 13F filing on 6/30/18 saying they were long 1.46 million shares was false? Or is Deerfield just a fraud and can report whatever it wants?
And was the fact that MNKD was going to issue shares a secret between them and Deerfield? Of course not - anyone paying attention knew it was coming. It's obvious players in the market are shooting against predictable dilution events for MNKD for short term trades.
Head in the sand? Not quite yet, but heading to the beach next week ... we'll see
No requirement to net out shares. Net of 6 million short. Alright last post from me on this because it doesn't seem like we are going to agree.
Yes - Deerfield is free to short stock as a hedge against loan - no issue. Can it pile on the shorts right before a share issue, negatively impacting the deal price, and then net their short against the new shares issued? No - see SEC Rule 105.
"Net of 6 million short." - That's a guess right - almost looked like you were stating it as fact. And quite simply - why are they keeping a long position anyway?
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Post by mnkdfann on Aug 20, 2018 13:44:28 GMT -5
Is this legal? Are they allowed to trade on inside information? I wouldn't be angry at Deerfield for making lots of money by lending money to risky investments, but I would be angry at them for making money illegally. (Yes I realize Deerfield doesn't care if I'm angry at them.) Actually it is illegal. It's SEC Rule 105 and they track it. Rule 105 update.
It prevents firms from selling a stock short within days of an issue to drive down the price and profit from them receiving new discounted shares from the company.
"Rule 105 prohibits selling short such a security within the five business days “before the pricing” of an offering and then purchasing securities through that offering." I suspect Deerfield simply shorts in advance of the 5 day period. Deerfield knows well in advance that shares (or cash) are coming by a certain date, and it is probably pretty confident that shares are not going to magically pop just before the payment is due. With the payment looming the price pressure is down, not up. If Deerfield is shorting now, with the payment due on August 31st, IMO there is likely no violation of Rule 305 going on. The link also notes "Other exceptions avoid liability where the short selling and the offering purchases were conducted by independent accounts or investment companies." Is it possible that 'Deerfield Investments' qualifies as an 'Investment Company'?
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Post by mnkdfann on Aug 20, 2018 15:00:06 GMT -5
Up rather nicely today. AH news?
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Post by peppy on Aug 20, 2018 15:21:06 GMT -5
MNKD Nasdaq real time volume, 611,303 shares MNKD Nasdaq summary volume, 1,258,427 shares. MNKD $1.11 +0.04. +3.74% www.nasdaq.com/symbol/mnkd(MNKD has volume this morning, 103,076 shares in 10 mins these days is good. MNKD $1.12* 0.054.67% 259,290 shares traded real time at the one hour mark. $1.09. ) 425,586 real timeshares traded at the half. New Volume thread tomorrow.
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Post by mytakeonit on Aug 20, 2018 15:23:53 GMT -5
Volume Fove is coming to a theater near you !!!
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Post by morgieporgie on Aug 20, 2018 15:42:48 GMT -5
MNKD Nasdaq real time volume, 611,303 shares MNKD Nasdaq summary volume, 1,258,427 shares. MNKD $1.11 +0.04. +3.74% www.nasdaq.com/symbol/mnkd(MNKD has volume this morning, 103,076 shares in 10 mins these days is good. MNKD $1.12* 0.054.67% 259,290 shares traded real time at the one hour mark. $1.09. ) 425,586 real timeshares traded at the half. New Volume thread tomorrow. That sounds exciting.
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Post by mnkdfann on Aug 20, 2018 15:49:17 GMT -5
New Volume thread tomorrow. Volume FeeFiFoFive? Volume Feev (yes, feev is a word)? Volume Fava (as in fava beans, sort of goes with peppy's recent health consciousness whole foods kick)? Volume Fife (a Scottish thing ... any Scottish blood in you, peppy)? That's all I got.
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Post by uvula on Aug 20, 2018 15:58:59 GMT -5
Let's really confuse people. Call it Volume Six.
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Post by buyitonsale on Aug 20, 2018 16:17:49 GMT -5
Pipe
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Post by parrerob on Aug 20, 2018 16:56:09 GMT -5
I vote for volume Fire.....
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Post by peppy on Aug 20, 2018 18:50:55 GMT -5
Pipe prostatitis
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Post by morgieporgie on Aug 20, 2018 20:05:10 GMT -5
Pipe prostatitis Can you call it volume morgie?
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