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KaleBios 'Black Friday' Begins As Shrekli Forces 65% Short-Squeeze Surge In Pre-Market
Having announced in two brief tweets on Thanksgiving - just as we warned was very possible - that he would pull his shares from being available-to-lend, Martin Shrekli has sent the meteoric Volkswagen-like trajectory of KaleBios vertical once again. With short-interest having surged to 49% (from 5.6%), the yanking of his loanable shares has sent KBIO up 65% in the pre-market, back above $45 (from just 45c 10 days ago).
As we noted previously, and now the squeeze really begins, as all those 49% who are short KBIO, according to Markit, rush for the nearest exit, while those who are currently long the stock refuse to sell at any price knowing they have all the leverage.
Whether this will translate into a Volkswagen circa 2008-type scenario, which incidentally looked as follows...
... and where a company which is for all intents and purposes bankrupt suddenly trades with a market cap in the hundreds of millions or even billions as desperate shorts pay any price just to get out.... tune in tomorrow to find out during tomorrow's abbreviated session, because the KaloBios comedy is nowhere near concluded.
As for Shkreli... well he is already the "most hated man in America" - might as well double down.
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Surprised Shkreli waited so long to pull his shares from lending. He could have done it last week already. KBIO => $100
Is this behavior legal? Will the SEC do anything about it? TPTB must be delighted that shorts in the US markets are getting killed.
Peace must be breaking out as gold and oil are falling
gold and oil are falling
Day after Thanksgiving....you can set your clock to it.
There are only big players in the market eating each other now. The concept of the retail investor disappeared a while ago.
"The concept of the retail investor disappeared a while ago."
Well, except for that nutjob who is in hock for over $100K to e-trade with his day trading account.
Any updates on how he is doing on that famous begging site (Go Fund Me)?
well, they could, but they dont' want to upset a potential future employer, so....
This is today's market version of "legal" arbitrage.
1.) take company public with other people's money at ridiculus valuations
2.) loot and pillage said company for your own profit
3.) the short seller community finally catchs on and drives the stock down to a reasonable valuation
4.) company insiders buy stock on the cheap
5.) pay corporate news shills to hype the stock as though there is nothing wrong
6.) when that doesn't work, then pull insider shares from sec. lending
7.) sell into the teeth of the meteoric rise resulting from short covering
8.) rinse repeat or start next fraud company
Actually the fact that the SEC doesnt do anything is a pretty strong indictment of them and argues that they should go the way of the Fed, that is to END add DoEnergy, DoEducation and even Commerce and a few others to that list). These kind of shenanigans undermine (or should) public confidence in the market. Frankly astonosihing
The SEC will only get involved if he is doing something like the following:
http://www.sec.gov/litigation/litreleases/2006/lr19655.htm
or if a MM firm gets burned and there were disclosure issues.
55 to 38 now in PM...fasten seat belts
Changing your name and moving to a new location is probably cheaper than trying to cover this crap.
I have a little empathy for this dope trader. I think this owner is a douche, but I thought that two weeks ago.
They are both examples of everything that is wrong in the markets. Except the are at the trailer trash level.
Most hated? I'm starting to like this Shkreli guy.
a douche's douche is not a double negative. it's a super douche.
douche for sure. But most hated? That's a bold statement even for a hedge fund manager and even comical claim if you walk down wall street.
Most hated by Hillarity maybe. She is the queen douche and doesn't like the competition.
most hated? Most people never even heard of this guy.
He might get shot. I don't hate him. I think he's a fucking genius.
Where are the market makers?
Has the Madoff exemption been killed? If not, the market makers can use the options market to print up more shares by legally naked shorting.
Got out of stawks four years ago and quit watching so I don't know the answer.
Shkreli will make a nice cell mate for Madoff. Netflix can serialize their lovemaking in the shower: "Orange is the New Green."
i wonder why those squeezes are not considered by "market manipulation"
Shkreli should go to jail
Alex, the answer is, "He's a Jew."
Shkreli is Albanian..not a Jew you dumb cunt.
Nothing illegal about buying shares and not letting people borrow them to short.
It's easy to make money when you have money. Anyone who hates this guy is just a poor little bitch. Same morons who claim manipulation on everything and can't seem to make any money. You would think if they actually understood what was going on, they could profit from it..But alas, sub 100 IQ morons are only good at complaining.
Sephardi Albanian Jew, you lying sucker of cut cocks.
Butt hurt? Angry cause you can't get ahead in life? Just keep blaming Jews and manipulation..that should help you out!
Add this guy to the many clueless and incompotent fucks here at ZH.
Nothing from nothing
Never let an Albanian in wall street, they almost destoyed Italian mafia through sheer audacity. Shkreli is a smart albaian motherfucker, overtime he will become the greatest investor in wall street. Albanians have no religion other than money, hence no compassion or feelings. Otoman history has it that when sultan asked his various european subjets who wanted to go to hell, only one Albanian replied by asking : what is the salary? Probably Shkreli's ancestor.