Shares in troubled Paragon Shipping spiked 500%, even though the company had to sell off all its assets to pay down debt and has very little cash left. Even Paragon’s own CEO believes the liquidation value is negative. A peculiar conversion arrangement between notes and shares might explain the run-up, and predicts when the shares will fall. Read more.
EBIO’s main drug has failed two Phase 3 trials in a row. Its share price rose spectacularly on speculation the drug might have some effect after all. EBIO has now confirmed it will not further develop the drug. With dwindling case and no immediate pipeline, the share price could drop over 70%. Read more.