RE: Good time to buy in here?7 Oct 2018 01:26
"There was a setback when the asthma treatment was rejected by the FDA and so the period of uncertainty was swiftly latched on to by short sellers".
Sorry Fantom, I dont buy that analogy, as from my basic research to date the rejected asthma treatment which you refer to was not even priced in to the Hikma share price, so that explanation holds little weight with me.
As for the generic guidance side of things, again that does not wash for me as from what I see a small drop in anticipated forward guidance does not equate to a 70% (2.5B) drop in value of a company such as Hikma. If that were the case then why would the stock gain 160% in 5 months? did I miss the RNS that said the asthma drug was approved, or the RNS that said the injectables guidance was in fact wrong and its now some 500% more than anticipated?
IMHO something far more sinister went on here, quite what I do not know but judging by the analysts double downgrades from Barclays and Jefferies when this stock was trading low 800s, and saying that the price was going lower, for it to then suddenly turn around and gain 160% in a few short months to top 2000p just recently, to me that price was artificially pushed lower for a reason, a reason that is not clear to me at this current time but hopefully soon I will be able to connect the dots and find out the truth behind it.
Having a fairly good idea of the market machinations, it would be interesting and somewhat revealing to find out if there were any large positions exposed to this stock by way of options calls or spread bets.
Another oddity here is that I have been carrying out some research on stocks that have had crazy swings on no apparent news, and have found a correlation between the stocks in question and also certain hedge funds taking out short positions on those stocks preceeding and during a stocks decline.
For this reason I am most certainly going to refrain from investing here until I satistfy myself that nothing untoward went on here, although at present the stocks huge drop followed by an even bigger rise is IMO highly suspicious to say the least.
S8