It’s obvious that the COVID-1984 vaccine is going to be gamed in a giant pump-and-dump operation. We should expect stories like Moderna Therapeutics’ to emerge with some frequency as punters are desperately seeking South Sea bubbles in the casino. This is classic crony capitalism under the kakistocracy.
After the market’s close and the pump of Moderna’s stock, the company announced it will raise $1.34 billion in a new stock underwriting. And jumping quickly onto the bandwagon, several other biotech stocks immediately offered shares in secondaries:
- *KRYSTAL BIOTECH SHARES ARE SAID TO BE OFFERED AT $55 TO $56
- *CLOVIS SHARES ARE SAID TO BE OFFERED AT $8.05 TO $8.50
- *BELLEROPHON SHARES ARE SAID TO BE OFFERED AT $13 EACH
- *NOVAVAX FILES TO SELL UP TO $250M OF SHARES
- *HEXO ANNOUNCES PROPOSED OFFERING
In just the first three days of last week, public companies raised more cash from selling shares than in any week in eight years. According to Bloomberg calculations, investment banks conducted no less than 16 secondary offerings on U.S. exchanges in the Monday thru Wednesday interval in stocks such as Zillow, Equinix, MyoKardia, YETI Holdings and Q2 Holdings, Inc. Over that three-day interval, companies raised more than $17 billion from investors, the most since 2012.
We also learn that one Moncef Slaoui, a former Moderna executive who was recently appointed to co-chair the White House coronavirus vaccine project, will be divesting approximately $12.4 million worth of Moderna stock options at the post-pump price level, according to representatives from the company and the Department of Health and Human Services.
Slaoui pumped an alleged Moderna vaccine last week at a White House event to announce his appointment as co-chair Operation Warp Speed. The vaccine project’s other chair is Gustave Perna, a four-star U.S. Army General.
“Mr. President, I have very recently seen early data from a clinical trial with a coronavirus vaccine,” Slaoui said at the Rose Garden event. “And this data made me feel even more confident that we will be able to deliver a few hundred million doses of vaccine by the end of 2020.”
We also learn that Slaoui is a former GlaxoSmithKline pharmaceutical executive.
In reality, this is merely a pre-clinical human trial only. Analysts pointed out the study’s focus was ‘safety’ only. Further the size of the pre-trial is a tempest in a tea pot as the vaccine was only tested in two low doses on eight patients. Four participants were assigned to receive a 25 microgram dose, while the other four received 100 micrograms.
While the results released today seem to suggest that the vaccine can create COVID-19 antibodies in patients, there’s still some doubt about how long COVID-19 antibodies can keep patients immune, or whether COVID-19 might end up evolving like the flu, requiring repeated immunizations to maintain its protection.
In April, Moderna stock jumped after CEO Stephane Bancel told CNBC the company had received as much as $483 million in taxpayer funds to accelerate development of a coronavirus vaccine.
Bancel’s Moderna stake has made him a billionaire. He’s been selling a surprising amount of Moderna stock, but a company called Flagship Pioneer, which also happens to be Moderna’s largest shareholder, has been selling large blocks of shares as well. That company is controlled by Bancel.
CNBC reported a Facebook survey indicating that
- More than half of small and medium-sized businesses that shut down say they won’t rehire same workers, according to a survey compiled by Facebook
- About a third of closed businesses surveyed said they do not expect to reopen, with many citing an inability to pay bills or rent
Notice the double-bind mind-control headline used. It’s not coronavirus that is shuttering these business. It’s the drawn-out lockdowns.
Regardless of the impression that “Jerome Powell has punters’ backs” a frenzy of small-retail buying has ensued that’s useful for the dump equation of these pumps.