I think I’ve noticed this phenomenon is the US too @mikebrisy. There will still be analyst coverage, but various funds have different interests at different points and short strategies seem to form a big part of that.

@PabloEskyBruh yeah, I think it is common practice. What made me take notice was the matter of fact way the commentator mentioned it. It was as if this was something everyone knows about. Except me, that is.

I was definitely not in the loop either. I also found it interesting that somewhat implicit in the strategy is the confidence to time that news cycle — and potentially even front-run public announcements. They don’t seem to be concerned (as I am) of good news catching them off guard. For me just holding and accumulating is the safest strategy and the only one I know.

Probably never been a less risky time for anyone who has the knowledge/skill-set to play in that gray space but. The current US Federal Administration has hardly made vigorous enforcement of insider trading laws its priority or focus — and the strong argument could be made that it is all but encouraging and incentivising it.

@PabloEskyBruh Yes, I also prefer to make decisions based on a view of long term value, appropriately risked. However, understanding the flows better certainly helps me better understand the price action of the many shares I've held in this space over the years. I also think it might have a bearing on my timing of purchases and sales. For example, If I want greater exposure to a particular idea heading towards a decision milestone, I probably have to pull forward my buy timing, so as to beat the price action of shorts being unwound ahead of the target date. As one example.

However, as you say, it is probably worth being careful (and not too cute) so as to not get caught on the wrong side of a surprise announcement.

A class recent case is $4DX. You might have thought when the 501 approval came through for CT:VQ, ahhh no hurry, the hype will unwind because it is going to take months to get a reimburesement decision, and no-one will sign contracts until that's known. Wrong. Reimbursement came through in a few days.