Possible bidding war on NEOP.ob

Discussion in 'Stocks' started by oraclewizard77, Nov 6, 2010.

  1. oraclewizard77

    oraclewizard77 Moderator

    http://www.cnbc.com/id/39948457?__source=yahoo|headline|quote|text|&par=yahoo

    I have invested real money in this stock. The drug is both safe and effective.

    FDA approval is one catalyst for higher stock price for current phase III drug, plus they have another blockbuster in their pipeline waiting for phase III trials.

    However, the new information from an analyst is once the 1st drug is approved, there could be a possible bidding war on the stock. i think this could easily drive it up to around $ 10/sh sooner rather than later.

    I was able to get in at lower prices based on my thoughts of very good chance of FDA approval, and I had to sit through a draw down on a 3 month delay, but with this new information, I think even those buying now have great risk vs reward for this stock going forward.
     
  2. oraclewizard77

    oraclewizard77 Moderator

    http://shortsqueeze.com/?symbol=neop&submit=Short+Quote%99

    It also looks like there are some shorts that are currently trapped in the stock.

    There are no options available for this company, so it looks like they were not able to hedge their shorts by buying calls.

    I think they were surprised by the spike up although I feel this company has been undervalued for a long time.

    They seem to be trying to average down but without much conviction that it is going to work since they were not able to manipulate the price down.