Another illiquid micro cap decimating the shorts after biotech "guru" takes a stake. AQXP went from $1.75 to $55 in two days on Baker bros news. KBIO closed around $2, last trade was $19 after hours on Shkreli stake.
What makes KBIO even more interesting is that they already announced they would be winding down operations. Now it appears someone took a majority position and wants the company to continue operations or outright buy the company. It will be interesting to see if insider trading charges gets filed on this one. http://finance.yahoo.com/news/kalobios-confirms-communications-majority-shareholder-002700572.html SOUTH SAN FRANCISCO, Calif., Nov. 18, 2015 /PRNewswire/ -- KaloBios Pharmaceuticals, Inc. (KBIO) today announced that it has been informed that an investor group comprised of Martin Shkreli and associates together have acquired more than 50% of the outstanding shares of KaloBios, and that the company is in discussions with Mr. Shkreli regarding possible direction for the company to continue in operation. Mr. Shkreli is the founder and chief executive officer of Turing Pharmaceuticals, a privately held biopharmaceutical company. "We have received communications from Mr. Shkreli informing us of his group's ownership position, and a proposal to continue the company's operations," said Ronald Martell, Executive Chairman of KaloBios. "Our board of directors is prepared to entertain any constructive proposal, which we will act upon promptly. Addressing short-term cash needs is our first priority, and we continue to be open to further dialogue," he concluded. KaloBios had previously announced that it would undertake a wind-down of the business.
Message boards are saying that management colluded with Shkreli. Announced the wind down so the stock would tank and he could buy 50% of the float in the open market for pennies. This Shkreli guy makes Ackman look like a saint.
I wonder if the cartel is calling in shares, if so, they are selling (using forced covering to exit at artificially high prices)
KBIO has 4 million shares outstanding. Back out Shkreli's 70% stake and it's a 1.2 million share float. The float has already turned over 8x today as of this posting. This stock will plummet.
Probably. Shkreli can sell almost 800,000 shares and still maintain majority control. But can you imagine the downward pressure effect of trying to sell a mere 100,000 shares.
The Constitution should be updated so that Martin Shkreli can legally be subjected to cruel and unusual punishment.