To Short or To Long?
Short Case – Probable one year delay to market, Questionable Mgmt - late 10k filing & refusal to discuss key points on CRL, little share price decline on CRL.
Long Case – approval more likely now (if you believe management) & price targets at IB’s increasing a little (not surprising given they need cash).
For me this is a compelling short. I picked up short at 16.30av (Tuesday and Wednesday), and fortunately some April $15 puts this morning (at 55c).
So far so good. When MAPP finally release their 10k, this may provide more negative news. Also the stock is 80% insto owned, so maybe we see fresh selling from them in the new quarter (next week). MAPP intend to meet with the FDA to discuss the CRL (6 weeks + time), until then there is great potential for more fades.
Also, see this good MAPP review.
Open Trades Short
AFFY, AFFY (Apr $15 puts), MAPP, HUSA (April $7.5 puts), NGSX, SVVC
Open Trades Long
ALXA, RGEN, EXEL