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Biotech / Medical : Immunomedics (IMMU) - moderated
IMMU 87.860.0%Oct 23 12:00 AM EST

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erippetoe
To: erippetoe who wrote (53661)1/13/2020 7:45:09 PM
From: erickerickson2 Recommendations  Read Replies (1) of 59045
 
As you may remember, I'm not much for conspiracy theories, I think there's too many disparate forces at work for a concerted effort and they'd all have to work together to be effective, and my gut feel is any one of them would cheerfully sell out the rest.

But this kind of thing is enough to make me change my mind. What I love about this is there's absolutely no explanation of _why_ the margin requirements changed. IIRC this happened a year or two ago as well. And I have to wonder whether they raised the margin requirements for IMMU in general for all their clients or whether you're "special".

You say you got one "last week or week before". I'd guess the week before when the price started dropping. I suppose on the bright side they can't raise it much more.

Hmmm, and options are expiring Friday, another group who could have made some money if they were prepared for the drop.

I decided to try to see what the margin requirements were for my brokerage (Citi for reasons I won't go in to now) and couldn't find anything easily so I don't have a clue whether it's local to ETrade or not.

But on the Citi site there's a "Markit Research Team Consensus Report". And yes, it's "Markit". The 7 ratings services have 0-buy 2-hold and 5-sell. But then there's this gem:

"ResearchTeam's rating was correct 42.4% of the time, and incorrect 51.8% of the time", and "Coverage was dropped 5.8% of the time, due to less than 7 ratings"

So even if I give the "Research Team" the maximum benefit that whenever there were "less than 7" ratings services the call would have been correct, the "Research Team" is worse than flipping a coin!

Finally, I do wonder how much of a floor there is at the $17.50 range. Given that the recent offering was oversubscribed, how many institutions are waiting to snap up shares in that range? I have no clue of course, but it's fun to speculate.

Best,
Erick
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