Mela Sciences (MELA) jumped a hefty 109% after receiving a 'not-all-completely negative' recommendation from FDA's advisory panel on Nov. 19, 2010. This is 48 hours post FDA's warning against Mela's experimental medical device and the alleged violation against federal securities laws by company executives. Spotting an overreaction by the market immediately after the close to split votes by the medical experts on the panel, goldbiopharma recommended that MELA was a ripe opportunity for short selling.
"MELA's shares more than doubled in pre-market trading. This may be a good opportunity to SHORT the stock as this overreaction is expected to wean in the next few weeks."
To date, the stock has fallen 33% - not a bad return in ~2 weeks for short sellers!!!
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