If you didn't know what "full Volkswagen" means, now you do — it means "K-BIOed." See the chart below and be glad you didn't act on your rational assessment that the stock's move to $18 on Friday was overdone.
Courtesy of ZeroHedge. View original post here.
Just as we warned was possible, 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.
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.
Is this next?
Because… Short interest actually rose to 38% of float as of Nov. 20, up from 5.7% on Nov. 13: Markit
[Picture by Banksy.]
