Capital Structure Engineering
Tactics which affect capital structure arithmetic can have a large impact on share price. But the use of tactics like share buybacks, hidden leverage and sequenced expansion spending are almost always missed by the sell side.
Securities law
These are my personal notes on various issues relating to securities law including SEC filings, enforcement issues and more. I am not a lawyer.
Med devices, drugs, FDA regulation
Investment and regulatory issues relating to biotech and med device stocks.
Short selling in focus
Going short is not the opposite of going long. Being short is far riskier and more complicated than most people realize. Here are some examples and explanations.
Behavioral Finance
Even some of the smartest investors on Wall Street keep repeating the same costly investment mistakes without ever realizing it. Note: More of these descriptions will continue to be added over time.
Smear sheets and the Ricardo campaign
September 30, 2020
Behavioral Finance
Below I include just a handful of the smear sheets which keep circulating around my name. As you can see, the people who post these things strongly encourage others to...
Long PLCE. Children’s Place could quickly spike back to $160
August 1, 2019
Capital Structure Engineering
Short interest recently hit 44%, even as the company continues to buy back shares. Children's Place has been buying up the assets of bankrupt competitors and is the sole provider...
Will Martin Shkreli’s conviction be overturned ?
July 3, 2019
Securities Law
Acquiring the title of “Most Hated Man in America” is no easy task, but Martin Shkreli pulled it off. Shkreli’s name is in the headlines again after his attorney argued...
Share buybacks. Overt vs. Covert (a very big difference)
June 28, 2019
Capital Structure Engineering
You can’t fight the Fed. The share buyback parade looks like it will be accelerating further before it shows signs of moderating. So if you have been waiting for market...
Some lesser known facts about the SEC
June 16, 2019
Securities Law
Here are a few interesting observations about the challenges faced by the SEC in regulating securities markets and investment activities. 1. The SEC staff consists of 4,500 people and their...
Moxreports assesses the JOBS Act
June 16, 2019
Securities Law
The recent SEC fraud charges against Longfin Corp (LFIN) are a good opportunity to take a broader look at the grossly misnamed “JOBS Act”, which substantially lowered listing standards while...
FDA Special Status Programs (Part II: Concerns)
June 16, 2019
Med devices, drugs, FDA regulation
The original intention of FDA “special status” programs such as “orphan status” and “breakthrough therapy” was to level the playing field by providing financial and development incentives to get drug...
FDA Special Status Programs (Part I: Overview)
June 16, 2019
Med devices, drugs, FDA regulation
Drug development companies often issue press releases touting that their drug has received special designations from the FDA citing terms such as “orphan” drug status, “fast track” approval and “breakthrough...
How pricey stock borrow can predict short squeezes
December 20, 2018
Market Commentary
The Tilray squeeze.Tilray inc. (TLRY) is a Canada based producer and processor of marijuana. In July of 2018, Tilray came public on the NASDAQ raising $153 million in an IPO...
Anchoring bias
December 11, 2018
Behavioral Finance
Anchoring bias. People have a strong tendency to perceive prices as “belonging” within a range once that range has been previously established. Anchoring refers to our propensity to attach our...
Herd behavior
December 11, 2018
Behavioral Finance
Herd behavior. An experiment conducted at the University of Leeds showed that it takes a minority of just five per cent to influence a crowd’s direction – and that...
Confirmation bias
December 9, 2018
Behavioral Finance
Confirmation bias. In the finance world, investors will often over-emphasize information that supports his existing thesis while actively ignoring information which might discredit that thesis. When looking for new information,...
Hedge funds lose $30 billion on VW infinity squeeze
December 9, 2018
Capital Structure Engineering
Related article. How Martin Shkreli caused a 10,000% squeeze on KBIO Volkswagen Infinity Squeeze. The October 2008 short squeeze on shares of Volkswagen AG has since been referred to...
How Martin Shkreli caused a 10,000% squeeze on KBIO
August 1, 2018
Capital Structure Engineering
KaloBios (KBIO) Infinity Squeeze. In November 2015, “Pharma Bro” Martin Shkreli orchestrated a violent short squeeze on failed biotech KaloBios that caused its share price to rise by a staggering...