Bookkeeping: Closing Short on Sequenom (SQNM)

Uhhh... obviously in the $3s I think most of the downside is in, unless it goes to zero. Unfortunately as I stated last night I covered most of my short early this week, so these are the last 50 shares. Having a hedge at this point is useless.

I am not a speculator of the highest order, but of course if you have spare money to toss around you can buy on the long side. Per James Altucher Ridgeback Capital (a hedge fund) had 92% of their portfolio in Sequenom so you can say goodbye to that fund. And RA Capital (another fund) has 50% of their portfolio in the stock.

One interesting play is as these funds liquidate their other positions will (could) fall under pressure - for example RA Capital's other top positions include Pharmasset (VRUS), Ardea Biosciences (RDEA), AMAG Pharma (AMAG) and Vertex Pharma (VRTX).

I won't average down because it's not my thing to speculate on casino chips, but selling the 1000 shares I have is useless here; the stock is basically like a call option - it's worth less than $4000; if there is any truth to the story - then by late in the year or early next the stock should recover. However, this management is toast in my opinion and the avalanche of lawsuits will overwhelm. I might change my mind and just dump it in the coming weeks, but the fact that multiple employees and not just one was involved makes the picture darker.

The irony here is I avoid small and mid cap biotechs for these adverse reactions. The idea here was this was not a drug company, where the FDA could snap its back in a moment. This was a test instead... but the same neck snapping happened. Yes, indeed ironic.

Long Sequenom in fund; no personal position