Agree re margin calls. At current price, we are starting to get into margin call territory and it could get very ugly very quickly.
Whilst I had stayed away from BLA in the past as I thought it was overvalued (and I have a bit to do with them professionally and hold the people there in good regard - just felt the market pricing of their equity was too high), it now has some enormous baggage that it needs to find a way to discard before we see price stability.
I don't believe for a moment that this is another funds management disaster like we have seen in the past. Rather it is a market tussle on how to value this entity going forward. It will settle at a price in the end, but where is anyone's guess at the moment.
All I can offer to those who hold the stock - don't panic. I have had many a good underlying stock which has gone into freefall for different reasons and I have found more often than not that holding my nerve and not selling has allowed me a more profitable exit later. I classify BLA as a "good" stock as it has level of underlying earnings (it is the maintainable earnings that is at the core of this debate) and a good cash buffer courtesy of the recent raise.
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