It will be interesting to see how the short interest fluctuates heading into STAR data. The last reading was May 15th and we know the company will not do another secondary or put shares to Lincoln Park until after the STAR data is released. The company clearly believes the stock will rally substantially on the data readout. In fact, they are counting on it! The short interest numbers should provide interesting insight especially since the short sellers have never been squeezed.
Agree DOV, although we may have a different take on how they (short side) will play a positive result.
To me, this is all about control. Right now they are in a good position.
Will the right people step in and in enough size to change that ?
There are several zones that have my attention right now and Cytori wont be the only ones looking for sales either imho.
Indeed, based on my emails with Girao (he seems to be more sensitive to pps than when he first came), the company seems to realize that several pending events may have relative important impact on the stock prices (than many other events):
1. STAR data readout (even if the data is statistically positive, it would be a while before the actual FDA filing).
2. San Antonio lipo doxo manufacturing validation, leading to EU partnership and ANDA filing. These events may come later on in the year, after a gap time after the STAR data readout.
It the company is betting on a sure STAR data readout success. I personally think one has be cautious, based on past company performance. If the company is planning to raise a lot of money because of a successful STAR data readout, the potential share dilution may lead to a short rally (hope it is not a big AM bull run and a PM or a AH crash, as it has been recently). WST has told people to take money off the table. I hope this kind of binary swing will not happen - I hope the PPS will go up and stay up with heavier daily volumes, so that the company can raise money, while the little guys can recoup some of their loses.
The short interest update is reported for 8/31 before the corporate reorganization. Since then (several days later after the announcement), there is a sudden drop in PPS to as low as 26 cents.
As many have commented the corporate reorganization is not considered good news and the 1.8 million shares short position has clearly demonstrated the negativity. (Someone knows this bad news before the announcement.)
Talking about the latest corporate reorganization, the 50% layoff has practically emptied the CYTX headQ in San Diego. This is my calculation:
A 50% reduction for the 80 employees would cut the number to 40. With 20 in San Antonio for the Nanomedicine and the 8-10 in Tokyo and EU remaining, the San Diego headcounts would now be about 10 to 12 people. If all the original generals (per company web page) are kept in the San Diego headQ, there should be no indians left. (They would have big office spaces now.)
Franshei, no buying interest today - light volume and currently down .02- however, my system shows very little selling pressure through .40 (may recover later in the day??)- in any event , we obviously need news for any real advance.
Kinda goes to show you their thinking if you are correct. Keeping what they think they can sell and other than the patents the whole cell business is done for them...OK BARDA...which has been more lip service than action for years now.
You wont see what lurks in the dark pool although I doubt that will really apply here.
You wont see what is within the algo parameters that can place a order in a millisecond.
Based on my calculation, the San Diego HQ is now practically empty. Dr. Marino will do most of the BARDA clinical studies through a CRO and all the statistics through a contractor. After the release of CTX 2, in house supportive staff for the celution system would be reduced substantially. CYTX may even find a contractor to do most of the manufacturing.
CYTORI KKK generates only $ 1 million every Q. The company would benefit more by selling the Japanese business and do all manufacturing of the celution system in China.
Thus, CYTX can focus in 4 areas in the US: BARDA, Scleroderma (it is not dead), AZA and CRM 2100 (preclinical studies).
The better deal is to find do a corporate partnership (some kind of buyout by someone with a deep pocket - new corporate control and better guidance: replacement of Rickey and Hedrick at the top).
I still don't think Cytori KK is worth very much.
Otherwise, agree, buyout best and imho only real option if some sort of a positive ending is to happen. If this is the case the only real negotiation is the Karat plating on Hedrick's parachute !