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Shorts Executed As KaloBios Goes Full Volkswagen: Here's Why
Just as we warned was very likely last Friday, KBIO is going full Volkwsagen up another 150% today alone (up from $1 last Wednesday to over $45 today), the stock has just been halted halted again halted for the 3rd time.
Here is what we said may be happening:
In other words, Shkreli's consortium had acquired 70% of the company, and should they decide to pull the borrow, on the odd chance that the short interest had soared to above 30%, KBIO - which until a few days ago - suddenly has the potential to become the next Volkswagen: a company which has more shares short than there is float available to cover them.
And, as of today, it appears to be happening just as previewed:

From 44c to $45.82 in a week...
What's the Bid/Ask spread in $KBIO? Anywhere from 7 cents to 7 bucks apparently! pic.twitter.com/hMxb9n3NHp
— Eric Scott Hunsader (@nanexllc) November 23, 2015
It seems we were spot on:
What happens if Shkreli's plan is indeed to rerun the "Volkswagen" scenario and unleash an epic short squeeze that sends the price of the company into the stratosphere, unlinked from any fundamentals, but merely soaring ever higher as desperate shorts pay any price just to get out.
We hope to find out as suddenly this until recently bankrupt company whose price has exploded in the past two days, has become not only a poster child for everything broken and manipulated with the market (think 2014's CYNK one year forward) but has the market following with morbid to find out how the tragicomedy of "Shkreli vs the Shorters" concludes.
And here is the punchline: According to Markit, the short interest of float is now 38% up from just 5.7% on November 13!
Why is this a problem?
Because Shrekli's investor "group" bought 70% of the company stock. If they pull the borrow and demand delivery, there will simply not be enough shares outstanding to satisfy all shorts, leading to, drumroll, the next Volkswagen.
So is this next for the recently bankrupt company?
Then again...
Turnaround in progress. $KBIO pic.twitter.com/5dseMG3B8I
— Martin Shkreli (@MartinShkreli) November 23, 2015
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May you live in interesting times.....
Martin Shkreli'd
Ahhhh, wait out the short squeeze then drop the short. It is all timing into the fraud.
His spirit animal is a weasel.
more like a New York sewer rat.............maybe them GMO foods drop on the ground can turn em into splinter from teenage mutant ninja turles
Death to naked shorts.
Sure looks like one. The famous smug grin pic is is weasliest face I've ever seen.
That guy looks enough like Ralph Reed that I would like to see brass knuckles on a huge fist impact his face at about 250 MPH and hear the subtle crackle crunch crack of his delicate facial bones in the aftermath and hear the high-pitched whiny screaming of the girl man as his nerves send pulses of energy to the pain centers of his brain
Shrek goes to video.
All this for a company that is worth little more than the cost of its office furniture.
KBIO is the 2015 version of CYNK
See AQXP chart. This shrek guy wil be trading from prison soon.
“As charged in the criminal complaint, Mulholland used an elaborate offshore corporate structure built on lies and deceit to defraud U.S. investors in publicly-traded companies and profited to the tune of $300 million. He concealed his leadership role in this fraudulent network, which included stock promoters, lawyers, and broker-dealers, by using aliases and sham companies, and fled the United States when his secretly-owned brokerage firm was indicted last summer,” stated Acting United States Attorney Currie.
Hey, im impressed.
Efficient "markets"!
(Rental office furniture.)
I'd like to see the fed squeezed for all their worth.
Unfortunately exactly the opposite is what we see.
The honourable way out is through Seppuku.
I foresee many GoFundMe campaigns for Japanese swords.
If the price is going up then somebody must be paying more and more for it each hour of each day.
Who the hell would do that?
All the desperate souls willing to pay anything to get out of their shorts.
Oh, right, duh. Because absolutely nobody else would touch this thing with a 10-foot pole. I suppose some of the shorts have been hoping beyond hope this would stop and come back down to where they weren't going to be crucified, but that ain't in the cards here.
I wonder whose shares the shorts borrowed.
I'm sure there's also some momentum chasers in there. Gotta ride the rallies right?
Martin is really playing a stupid game. He is already in the crosshairs of the cronies, and now he is waving his dick in their faces. Yeah, he'll be in prision in a year.
DOPE HEAD CAPITAList
I think this is what the Federal Reserve Board had in mind when they decided to excite the animal spirits of a bull market with NIRP.
KBIO: either above $100 or below $2 by Christmas. Red or Black?
im wondering when they will find him dead?
What? Don't tell me that our honest broker houses have sold more shares than exist in the entire float again? But, but, its for efficient markets and leeqideetee.
Precisely Volkswagen became the priciest company in the world for a few seconds in one of the greatest short squeezes ever which saw the stock rise nearly 100% in a very short time. That was October 28, 2008.
History repeating again?
What's the Bid/Ask spread in $KBIO? Anywhere from 7 cents to 7 bucks apparently!
heheheeeee
Be Prepared to see this again in UNXL! Shorts are trapped.
Looks like it tanked on open. Level 2 was too light for a buyin rally and ain't no one getting on board with yet another technology company that makes the same thing as everyone else. Besides have to find people that bought this on margin to short it properly, judging by level 2 that wasn't going to happen. It was just going to fall like a knife.
Great call dude! Down 50% this morning. You are awesome - an awesome shill that is.
I KBIO'd some people... (Keep Bowels Internally Open)
I am unsure.The VW issue was a company (Porsche?) acquiring options quietly,then exercising
them on a Friday, I think.Same effect though.The music stops ya gotta have a chair ya.
This is 2015 and they haven't nailed down this naked shorting business?
And COMEX is re-hypothecated 250 to 1? Good luck with that!
" Force Majure" or something like that.....
Shorting this alleged "free market" without timely inside information (aka Congress, Banking, Legal etc...) has been insane since 2009.
Getting burned on the upside is a harsh, but very valuable lesson to learn.
Sharks in the water. Feeding frenzy.
PUMP AND DUMP.
There's no end to the people who keep playing this game.
I don't feel sorry for the idiots who will lose a lot of money when this crashes. They made a choice to sit on the bus, even though the road goes over a cliff.
Shkreli needs to payoff those lawsuits and fraud charges somehow.
Interesting how KaloBios in Classical Greek means the "Good Life"
Calibos...
Level 2 for KBIO is a joke right now.
What is the over/under on the Joe Campbell suicide watch? Is $106k his final margin call or is he still riding exposure?. ..must be up to US$1M by now! :D
This should be settled with bullets.
"We Shrkeli'd some folks."
The saying that "you should never say never" is usually true, but there are some exceptions.
In this case, the rule holds true. In particular, you should NEVER invest in any entity that has even the remotest connection with Shkreli.
So what's prevents a deep-pocket hedge fund from shorting it now at $39? Since naked short-selling is allowed, this thing is going to crash to $6-8 fairly soon.
Wish I was a billionaire, I'd gut that little prick with a few million naked short shares.
If this was China, Shrkeli would be floating with dead pigs in a river.
I'm confused so let me talk this out loud...
If this young guy bought 70% of a company that was considering liquidating he MUST have paid a premium for the shares as they went up during said buying. His average position cost will be MUCH higher than the assets are worth.
Shorts get whiplashed by this stupid purchase and find themselves trying to buy back in a panic...regardless if they can buy back or not the stock SHOULD move back down to liquidation prices UNLESS this young buyer can add value and take a resource multiply it and make a profit.
How else can his purchase make money unless he unloads his prior takeover back onto the shorts?
Read this: by poster Palladin
http://www.zerohedge.com/news/2015-11-20/desperate-novice-trader-may-be-...
How else can his purchase make money unless he unloads his prior takeover back onto the shorts?
There are not enough shares for the shorts to buy in order to cover.
Your answer, Binary Option trading. 60 seconds to make table scraps.
/LOL
Need your help Zerohedge family. Still going through my mail since Marco Island stay.
We own two 5.4L Lincoln SUV'S. Both are a toy or haul shit. The ownership is 2007-2008 respectively. They both just sit in our garage. Only use them if you need to. We have other cars to run about. Both SUV'S are slightly over 50K in milage for there age.
Let's explain my issues. I need you to hang these two Jews running this class action suit. I haven't had any issues with my spark plugs.
http://www.fordsparkplugsettlement.com/
Will not participate in this Jew run bullshit.
Jeffrey S. Goldenberg and James C. Shah are running this class action suit.
I worked on a project with Champion. They received more damaged spark plugs to the dealership. Even with improved tracking/packaging, the dealership would cry tears.
This is also the time when Obama was pitching ethanol corn based gasoline. He was fucking up the supply chain for Polypropylene manufacturing. I always use premium gas, some jew lawyers are over looking the facts. The corn based gasoline wasn't compliant to the engine. In a hurry, they rolled out Flexfuel badge. GM did the same.
Avoiding a Spark Plug Broken Off in Cylinder Head - YouTube
Not my same 5.4L example, have a look and string up those two Jews
How to Remove a Broken Spark Plug in a Ford ...
Thank you ZH. It all comes full circle to the Globalization asswipes. I will not partake in a civil lawsuit. Will accually help Ford string these Zionist from a tree.
"Because Shrekli's investor "group" bought 70% of the company stock."
Before the purchase, there were about 4.1 M shares outstanding. So far today, over 13 M shares have traded. That available 1.2 M is really getting worked hard.
One last point, metal expansion and contraction. Don't remove a threaded part under 70F. Ask the attorney Jew boys to explain metallurgy properties and temperature. Don't forget to ask why most repair garages are heated.
It's a good thing these Jew Attorney's didn't work on the NASA space shuttle product. We would of never got beyond the O-ring material issue.
Just think, this slimeball might make $100,000,000 on this, in days....
But what about this? Should make for another +600%
KALOBIOS PHARMACEUTICALS INC Files SEC form 8-K, Notice of Delisting or Failure to Satisfy a Continued Listing Rule oEDGAR Online(Mon 5:24PM EST)
http://biz.yahoo.com/e/151123/kbio8-k.html