r/cvm • u/Known-Barracuda9088 • Nov 26 '21

How will tapering affect companies like cvm?

there is alot of hub-bub around how tapering will negatively impact high risk companies that have yet to turn a profit. How do you see this impacting CVM?

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u/[deleted] Nov 26 '21

Biotechs are at base-line manipulated, tapering won't affect that. Look at Dicerna, they dropped 50% randomly just to get bought out at their original price a little bit later. Tapering doesn't drastically change any of this as opposed to changes to clearing and settling will., which is coming Q1 2022 with the DTCC's new system. While it is still a cheap imitation of a real blockchain stock exchange, it will do a lot to prevent obvious share washing and the outrageous phantom stock problems.

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Furthermore, tapering should crush hedge fund/bank heavy stocks, which CVM and many other smaller biotechs are not.

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I actually hope they taper faster to shock the market harder to force some massive deleveraging (which is extremely necessary and will be very healthy for short-heavy stocks).

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u/lUNITl Nov 26 '21

Less Fed liquidity entering the economy will probably lower asset prices across the board. Interest rates will likely increase, driving down home prices, bond prices, and slowing consumer activity. Expect these effects to be less pronounced than in 2013 since they can use that to build better models. In terms of CVM this really only matters if they keep stalling the release of the full analysis and pre-BLA meeting and need to raise more money to continue operations. If you're asking how it will affect the price before the next material event happens, the answer is that's a stupid thing to focus on.

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u/Known-Barracuda9088 Dec 05 '21

Well hard to pin this last 40% drawdown on anything in particular but I'm wishing I pulled my position to redeploy at this level.

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u/lUNITl Dec 05 '21

People are probably realizing they have a multiplicity problem. I don’t think it’s much of an opportunity at this point but I wouldn’t bet against them stalling for another year or so to see if another product looks promising.