Short Squeeze of the Century possible in CLSN H
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Posted On: 01/24/2013 2:56:41 PM
Short Squeeze of the Century possible in CLSN
Here is a wild idea for Celsion (CLSN)....could THIS happen?.........
There are about 21.5 million shares worth of open interest in Celsion CALL OPTIONS right now. the float is just 35 million or less and 20% of the float is sold short.
Remember the Porshe Volkswagon squeeze of the century?
Volkswagon stock once spiked over 1,000 euro breifly making it the most expensive company in the world. It was a short squeeze orchestrated through options. Here is how it was done. You can read about it in the New York Times.
Really simply, Porshe bought 45% of Volkswagen stock in the open market, quite openly by the way, saying they were interested in buying the whole company. Once the share price rose to a price where it looked like Volkswagen was just too ridiculously expensive to buy, hedge funds were willing and anxious to short the hell out of it, figuring Porsche had neither the money nor the stupidity to pay that much for Volkswagen. They were actually right.
What they did not know was that Porshe had also been buying CALL OPTIONS on Volkswagen. And here is the twist. One day Porshe announced, "oh, by the way, we own 30% of the shres of Volkswagon through call options, and we would like to exercise them and take delivery"...they had the money for that. AND NOW THE BIG SCREW....the government of Lower Saxony in Germany owned 20% of Volkswagon stock, and they had no intention of ever selling a share.
So add it up, 45% + 30% gave Porshe 75% of the company, Lower Saxony owned 20% = 95% of the stock locked up, AND hedge funds had sold short 20% of the stock !!!!
The price went from $350 (already sky high because Porshe had been openly buying) to over $1,000 in 2 days as shorts could not cover....at over $1,000 Porshe started releasing shares to the open market and soon the price fell back by $400....Porshe ended up making an estimated 30-40 billion dollars, and the hedge funds were destroyed...the details in the New York Times article linked below.....
Now I wonder if something like this is possible in Celsion....???? There is open interest of about 21.5 million shares worth of stock purchased via call options, 20% of the float sold short, and just 35 million shares out there (some of it closely held). If the data results are good and price spikes to $20, might some big player step up and say, "oh by the way I own 15 million shares worth of Celsion via call options and I would like to exercise and have them all delivered!"....is that possible? Celsion share price would spike over $100, and keep going until someone released sizable stock to the shorts....don't ya think?
Maybe?
Google 'Porshe Volkswagen short squeeze' or read the New York Times article for the details......
Really simply, Porshe bought 45% of Volkswagen stock in the open market, quite openly by the way, saying they were interested in buying the whole company. Once the share price rose to a price where it looked like Volkswagen was just too ridiculously expensive to buy, hedge funds were willing and anxious to short the hell out of it, figuring Porsche had neither the money nor the stupidity to pay that much for Volkswagen. They were actually right.
What they did not know was that Porshe had also been buying CALL OPTIONS on Volkswagen. And here is the twist. One day Porshe announced, "oh, by the way, we own 30% of the shres of Volkswagon through call options, and we would like to exercise them and take delivery"...they had the money for that. AND NOW THE BIG SCREW....the government of Lower Saxony in Germany owned 20% of Volkswagon stock, and they had no intention of ever selling a share.
So add it up, 45% + 30% gave Porshe 75% of the company, Lower Saxony owned 20% = 95% of the stock locked up, AND hedge funds had sold short 20% of the stock !!!!
The price went from $350 (already sky high because Porshe had been openly buying) to over $1,000 in 2 days as shorts could not cover....at over $1,000 Porshe started releasing shares to the open market and soon the price fell back by $400....Porshe ended up making an estimated 30-40 billion dollars, and the hedge funds were destroyed...the details in the New York Times article linked below.....
Now I wonder if something like this is possible in Celsion....???? There is open interest of about 21.5 million shares worth of stock purchased via call options, 20% of the float sold short, and just 35 million shares out there (some of it closely held). If the data results are good and price spikes to $20, might some big player step up and say, "oh by the way I own 15 million shares worth of Celsion via call options and I would like to exercise and have them all delivered!"....is that possible? Celsion share price would spike over $100, and keep going until someone released sizable stock to the shorts....don't ya think?
Maybe?
Google 'Porshe Volkswagen short squeeze' or read the New York Times article for the details......
....................
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