Hey everyone, sorry for the short break in posts this morning. Just after posting this morning’s article on MannKind, I got a call from one of our amazing readers by the name of Russel to talk about MNKD, Afrezza, and more. While the conversation first started with MannKind, we ended up talking about how many investors feel… we started talking about big money gaming the system. So, does Wall Street game the system so that they can take advantage of larger gains than they should…YES! Unfortunately, there have been several recent instances in which big money has pushed a stock down; possibly to take advantage of the bounce back down the road. Two of those instances revolve around MannKind and IsoRay.
Adam Feuerstein’s Unwarranted Attack On IsoRay
IsoRay, Inc. (NYSEMKT: ISR)
First off, I have to be honest, I wouldn’t trust AF as far as I can throw him…and because I’m relatively skinny guy, that’s not far at all. Nonetheless, investors seem to love him, and when he speaks the market moves. Unfortunately, he decided recently to speak about IsoRay. Following a positive news release about the effectiveness of Cesium-131, Adam Feuerstein batted down the positive news; saying that the results were no better than standard care.
Now, I may not like Adam, but one has to admit, he’s a pretty smart guy. After all, he holds a prominent position in the investing world. So, what gets me about this whole thing is that he left key data out. Sure, Cesium-131 is equally effective as standard care, but there’s more to it than that. With Cesium-131 care takers, family members, and those around the patient don’t have to worry about radiation poisoning because of the short half life associated with the isotope in the compound. Not to mention, currently, patients have to go through a months long regime that includes chemo therapy and radiation to reach these results. However, with Cesium-131 the results can be achieved with only one treatment. Surely, someone as smart as Adam Feuerstein would have done his research and known of these benefits. So, is it possible that he’s just being a scum bag and pushing the value of the stock down for his own personal gains later? I’ll let you be the judge on that one.
Goldman Sachs’ Unwarranted Attack On MannKind
MannKind Corporation (NASDAQ: MNKD)
Another perfect example of this phenomenon is MannKind. A few months back, an analyst at Goldman Sachs made the decision to downgrade the stock and slash the company’s target price in a big way. As a result, MannKind fell like a sack of potatoes from the Empire State Building. In the research note, the GS analyst made a point to bring up Afrezza sales. However, the note was written only 3 weeks after the “soft launch” of the inhaled insulin; so, there simply wasn’t enough data at the time to claim that sales were low. Nonetheless, here we are months later and wouldn’t you know it…MannKind stock is back on the rise. As a matter of fact, the stock has seen a climb from under $3.70 about mid month to more than $5 per share today! Why? Well, according to a survey result release by Jefferies, endocrinologists not only know about Afrezza, but plan on using it more in the future. I wonder if Goldman Sachs or any insiders there picked up a few shares at a low point for some personal gain?
What Do You think?
Do you think big money games the system for personal gain? Do you know of any other real life examples of this happening? Let us know in the comments below!