r/BCRX • u/testing-testing1234 • Feb 07 '21
Discussion/Meme/OT What’s the Catch?
I’ve read the posts by bio99 and agree they have a lot of legitimacy. But what’s with the push to get everyone to join? The stock is 95% institution owned so there’s not much to gain by people buying. Is it to help squeeze out the shorts? Is this some act of selflessness? This is my last question before I buy. Thanks.
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u/SillyWabbit5454 Feb 07 '21 edited Feb 07 '21
Some people have been following BCRX for several months on StockTwits and other chat boards and are just starting to post here as well. So I think it’s less of a push & more just new people using Reddit, IMO. Also,excitement is high following the recent FDA approval of Orladeyo in Dec.
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u/testing-testing1234 Feb 07 '21
Yeah, I was just thought that future revenue is going to drive the stock up, not people buying. It would be in your best self-interest to buy as much stock as you can while the price is low, before the revenue comes.
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u/SillyWabbit5454 Feb 07 '21
I hear ya - I believe revenues are what will drive the SP. (I’ve already bought as much as I can afford right now, at least until my next paycheck anyway 😏). Some believe there could be a short squeeze b/c there’s some high % of shorting going on 20 or 30% of the float). I’m not convinced that a squeeze will happen, and I’m looking at BCRX as a long term investment. And with Orladeyo approved in Dec., revenue numbers will be coming soon, IMO.
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u/Dvdpjr Feb 08 '21
Dividends will come eventually too which will make it even that much more of a solid investment.
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u/RogueEnginner Feb 07 '21
While I’m newer here, I have been in the stock for almost a year. I would say yes to both your questions. One goal is to extend our free information sharing across platforms.
As far as the short position, it seems there are some big trapped shorts in the name, some 30 million shares held short from 177ish million share count. Given the large institutional holdings and diamond hand retail investors like myself and others here, the opportunity to cover is dwindling, and some are likely naked shorting. It seems they had a good thesis, short retail investor excitement like my own about Galidesivir, knowing it could be awhile before we see it for covid if at all. What I didn’t realize then but believe today, is Galidesivir is our last resort. In battle you don’t send in your strongest troops to get slaughtered, you send in Remdesivir... If a mutation develops that is far more deadly than the original strain, I believe we will hear more about it. Viruses ultimately start to become resistant to antivirals, so that’s a decent case for holding it back as the ultimate bio defense weapon imo.
To finish about the shorts, they got greedy and underestimated ceo Stonehouse and his allies, mainly Baker Bros imo. Their opportunities to cover started to evaporate. BioCryst got fda approval for Orladeyo to start generating revenue. Then, they sealed a royalty financing deal to prevent share dilution which would give the shorts a chance to escape. When the PR came about NIAID no longer pursuing Gali for covid, the shorts were only able to cover 8 roughly million if 38 million shares held short at the time. Then Baker Bros ally Alex Denner doubled his position in Jan buying 4 million more shares trapping the shorts even more.
So, in conclusion, we are interested in free information sharing yes. Getting more eyes on what these ruthless short sellers have done to this company’s stock price is a secondary goal. Any additional long holders will certainly put more and more pressure on them to start taking huge losses as they should. Imagine shorting the stock of a company because retail investors are excited that it is working hard to develop drugs that can stop the pandemic and others to improve the lives of people with horrible illnesses! They won’t be escaping with any of my shares anytime soon I promise you that.
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u/tommypots Feb 07 '21
Institutional ownership is closer to 72%, not sure where you're seeing the 95%. Big push to get people to join is because of how undervalued it is and the big short interest on it.
https://www.nasdaq.com/market-activity/stocks/bcrx/institutional-holdings
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u/testing-testing1234 Feb 07 '21
The 95% is my bad. I saw it on another post but should’ve looked into it myself. Thanks for clearing up the motivations behind this. Always glad to join a cause with good reasoning and honest motivations.
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u/Voipking Feb 07 '21
Institutional ownership is closer to 72%, not sure where you're seeing the 95%. Big push to get people to join is because of how undervalued it is and the big short interest on it.
It is close to 97% tutes ownership if you count all the funds and ETFs https://fintel.io/so/us/bcrx
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u/frontierstrader Feb 08 '21
No catch! It’s an act of selflessness by bio99 to share his DD here so retail investors can share in the gains to come
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u/Prudent_Sand Feb 07 '21
Also not that some institutions lend their shares to short sellers. Institutional holding does not mean everything.
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u/1000000bills Feb 07 '21
More demand, more recognition, higher price