Geron (GERN) Down 12% on Stock Offering

I'll file this under missed opportunities as we were short this name coming into the week; however in full disclosure the stock was up 5% when the market was down heavily yesterday and that sort of strength would of scared me off and I doubt I would of held my short, wary of this level of invincibility.

Apparently, Geron (GERN) has a nasty habit of doing a stock offering every time "hope" returns to the stem cell space, and pushes the stock price over $5. Management is nothing if not consistent.

• Geron Corporation (Nasdaq:GERN - News) announced today the pricing of an underwritten public offering of 7.25 million shares of its common stock. The offering is expected to close on February 19, 2009. On February 12, 2009, the last reported sales price of Geron common stock on the Nasdaq Global Market was $7.77.

Judging by the "type" of investors who pile into these stocks on hope, I would now expect the gap we cited down at $5.60s-$5.70s to "fill".

No position