If you're a Resverlogix shareholder (RVX.TO) relax, its not as bad as the subject line makes it appear.
As noted at the end of MY RECENT BLOG POSTING about Resverlogix,, short interest up to May 31st 2016 was only 1,500 shares. As per the most recent update through to June 15th 2016 the number of shares sold short climbed to 23,200 shares. To put that in perspective 23,200 represents a whole two one hundredths of one percent or 0.02% of the roughly 105 million shares outstanding. But it is a big jump in percentage terms.
So why do a blog post about it?
Because I do think there is some possible significance. The trading of RVX is incredibly thin, Yahoo Finance puts the 3 month average volume on the TSX at just 16,993. There are many days in fact where volume doesn't even reach 10,000. On June 14th, 15th and 16th the total TSX volume each day was just 3,800 then 6,900 then 5,900 respectively.
So what does it mean? Is this a bear raid?
Is there someone looking expecting bad news or a failed trial who's looking to cash in on a big drop? I highly, highly, highly, doubt it....not with just 21,700 sold short over this two week period. The best case scenario for a short seller is if a stock goes to $0.00 and gets de-listed, then there's no need to cover. Were that to happen with RVX then the party or parties who sold 21,700 shares short would stand to make a little over $20K. If someone or someones were confident that RVX was going to drop big I would expect to see 10, 20, 30 million or even more shares sold short, not a piddly little 20 odd thousand.
Why short such a small amount?
I consider manipulation by a party or parties looking to buy in or add to an existing position to be a distinct possibility. 20K short on a stock trading around $1 is almost meaningless, were it not for the fact that it represents a full day's trading volume, a little more in fact. With volumes in RVX being so light its my opinion that parties looking to manipulate the share price, that RVX can be pushed around like the puck on an air hockey table.
Reservlogix is an incredibly speculative investment, and I am long so I may be suffering from something called "confirmation bias", I full acknowledge that.
Any thoughts and/or comments are welcomed, as always please keep it clean and respectful.
Excellent Joe! Keep them coming.
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No one knows about this company and that's why no buying pressure recently. Anyone having done a minimum of DD on this company and holding its stock will know the company's lead drug is potentially a multi-indication blockbuster, and that is only one compound of over a thousand in this new science ip. Through 3 trials the drug has shown no significant side effects for the 55% and 77% reduction in major adverse cardiac events in non-diabetic groups and diabetic groups respectively. The "in-the-know" shareholders will not sell. So with no buyers too that leaves the market makers and other motivated "participants and interested parties" the broad free ice to play with the SP like a puck. There are some really deep pockets out there that would see the cost of this manipulation at these low volumes as negligible. Without greater promotion to the investment community and greater analyst coverage this manipulation will continue unabated. I think they will take this to under $1.00 in the coming weeks and potentially lower if summer doldrums months roll by without a deal announcement.
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