There has been a lot of goings on at Endo International (ENDP) over the past few weeks. The company is fighting opioid litigation on several fronts. Trials are taking place in New York and California. Another one is scheduled for July 26th in Tennessee. The stock has sold off violently, apparently due to exposures to opioid litigation. There have been inexplicable moves on the stock over the past three years on little news, or no news at all. ENDP can fall 10% or 15% per day – totally inexplicable. Longs have had to accept this type of price action, or else sell the stock. It is totally frustrating to watch broader markets rise into record territory, while ENDP falls or trades sideways.
Trump And The GE may have cracked the case. ENDP is not falling due to negative sentiment. Hedge funds have been selling the stock short in order to keep ENDP depressed. They have found a thinly-traded stock they can manipulate. In selling two million to three million shares everyday – shares they do not own – short sellers can cause the stock to fall or trade sideways simply through leverage and selling pressure. Per Trump And The GE, short sellers are manipulating the stock:
They have about 23 million shares sold short. Of the float that’s not held by insiders – that’s about 70% of effective short interest. That compares to 34 for GameStop and 38% for AMC … I think once the investment community becomes more aware of Endo … I think Qwo standalone is worth about $35 per share.
Shorts interest has risen over the past two weeks. Shorts refuse to lose. They will keep shorting to drive the shares lower either out of greed or in an attempt to protect their sizeable short positions. This could be a dangerous game if hedge funds or retailers run onto the buy side. Trump And The GE: Endo’s Short Interest Approaches 100% takes place Thursday, July 15th at 7PM. We will discuss hedge manipulation by hedge funds like Melvin Capital and Steve Cohen, owner of the New York Mets and hedge fund Point72, and others. We will chop it up and lay it out for longs to play it out.