Mereo Biopharma Share Discussion Threads

[taffee] 26/10/2008 20:23

as if he knows?

[fivepounds] 26/10/2008 20:12

Read this from cnbc.com

Next week is expected to mark the beginning of the US economy's entry into a recession and the end of the Federal Reserve's conventional monetary policy to remedy the situation
On Wednesday, the Fed's FOMC is widely expected to cut the key federal funds rate another half point, to one percent, in what what many assume will be the end of its aggressive easing campaign.

Then on Thursday, GDP data for the third quarter is expected to show the US economy contracted for the first time in seven years, ending months of speculation that the economy had managed to skirt recession, despite a one-of-kind credit crunch.

Right now, despite an extraordinary confluence of events, the consensus thinking is that these two events have already been factored into the markets. But there's reason to second-guess that thinking, because the implications are unusually big.

"It's a lot on the plate," says Robert Brusca, chief economist at Fact & Opinion Economics, who warns the Fed doesn't want to cut rates "so low, you kind of spook people."

Brusca also says that the powerful negative reaction to weaker-than-expected British GDP data Friday "suggests these economies are weakening faster than people thought."

Investors who have been watching the market probably noticed the wild fluctuations we've seen recently in the final hour of trading. The Dow's been swinging hundreds of points in either direction in a matter of minutes. The action has had even the biggest minds on Wall Street scratching their heads and wondering, who's doing all the selling?

Hedge funds, Cramer said during Thursday's Mad Money.

The same hedge funds that made huge bets on minerals, oil service, agriculture and other names, borrowing heavily to do it, only to watch those stocks plummet when the market turned down. Soon enough clients started to demand their money back, forcing the hedge funds to sell, sell, sell.

Now everyday at about 2:45 PM these funds prepare for the following day's redemptions and margin calls, unloading huge positions to raise cash. To offset their losses, hedge funds are shorting the S&P 500. The problem, though, is that the S&P, partially composed of defensive stocks that work during a downturn, is actually going up. So the funds are seeing losses on both their regular stock holdings and their short positions. It seems the only way they can save any kind of face is by flooding the S&P with sell orders to drive the index down. The move makes hedge funds' performance look a bit better at the end of the day.

The rebound rallies that follow these sell-offs happen, Cramer said, because even a small number of buyers can move the market when the trading volume is so low.
The real culprits here, as far as Cramer sees it, are "funds of funds." These are the middlemen in the hedge fund world that invest client money into other hedge funds for a fee. Unlike regular hedge funds, funds of funds have no lock-up agreement, meaning clients can get their money back at any time, so this puts added strain on the hedge funds in which they invest. Any time a specific hedge fund starts to decline, these funds of funds cash out. This trend has been a big part of the forced selling we've seen lately.

As long as this selling continues, we won't find a market bottom, Cramer said. For that to happen, all the remaining sellers would have to unload their positions. The only people left in the market by then are those that never sell no matter what, let alone look at their 401(k)s, and "we're not even close to that point" yet, Cramer said.

[tuftymatt] 25/10/2008 13:03

You will not make many "fivepounds" if you do that.

Good rise yesterday afternoon I see. I knew I should of got back in.....LOL

[fivepounds] 24/10/2008 21:21

Do not worry if you are losing money, this is what its all about.
Its a loop, keeping buying and losing and then keep working to make up the losses and buy more and lose even more.

[tuftymatt] 24/10/2008 10:54

Very sad to see this share at such a low level and with negative talk regarding bankers my thoughts are with those of you still holding.

[argy2] 24/10/2008 09:42

remy

Well said. Momentos was a great asset to this thread.

[tibibar] 24/10/2008 09:34

remynapolean

Very well put - and, on that note, I will "SHUT UP" and suffer in silence!

Tibibar

[muffster] 23/10/2008 22:02

What a mess this share is. I lost a packet on this 2 years ago, but got out. If Momentos or WBJunior post do not listen to them. They know absolutely nothing and contribute little.

[stevi1111] 23/10/2008 18:16

Dan.....

Think once Xmas is out of the way consumers will tighten their belts a lot more.

Hope this survives for you lot here. I'm in much the same boat on my Woolworths investment.

Tough times for retail and likely to get tougher into next year.

[dan de lion] 23/10/2008 18:12

I think that the bulk of the Spring/Summer 2009 will be delivered in the first three months of next year, it always has been so, by December they will have a very good idea of the forward orders, in fact most will be in already, if you go to the DKNY site you will see the menswear for Spring 2009 being advertised now.

[stevi1111] 23/10/2008 18:12

double post...

[stevi1111] 23/10/2008 18:11

stevi1111 - 22 Oct'08 - 11:27 - 4665 of 4692 edit

My opinion....

The MM's took on all those shares at 2.5p yesterday.

They then decide to run the price up on no trades in order to try and attract a few buyers for them to sell to at much higher levels.

..........

Typical MM games Pugg1ey.

Any report on current trading today was always gonna be bad, however it looks more serious than I thought.

Can Marchpole last another year as trading is'nt gonna get any easier short-term is it. I think not :(

[pugg1ey] 23/10/2008 17:30

so the MM's got to hear about this stuff a couple of days ago then sucked in a few PI's?

[taffee] 23/10/2008 16:10

actually retail sales are down 2.3%....its just exposing the pretenders

arcadia profits were down just 6.5%

[dennis russell] 23/10/2008 16:09

dan de lion I think they collect orders over the next 6 months for delivery in the Spring

[dan de lion] 23/10/2008 14:51

So can DKNY provide enough menswear sales in the current half year to pull MPH around?

[argy2] 23/10/2008 14:48

Drop in the ocean against what he still owes his first wife I'm pleased to say.

[momentos] 23/10/2008 14:45

Administration then purchase by Atlas on the cheap, total loss to shareholders seems the most likely option....

Good job Morris extracted plenty of money via bonuses over the last two years, eh?!

[taffee] 23/10/2008 14:41

regularly telling their bankers they are losing money more like

[argy2] 23/10/2008 14:38

Not sure what else you would expect them to say in the present climate of the High Street.

[0o0] 23/10/2008 14:36

"maintaining a regular dialogue with its bankers."

Sounds ominous.

[taffee] 23/10/2008 14:24

'reviewing all options' and 'talking to bankers' sounds bad news to me unfortuntaley