What's Driving Up Intrexon?
Intrexon Corp (NYSE: XON) shares witnessed a massive rise during mid-session on Tuesday, after opening flat.
Though the company is scheduled to release its third quarter results on Thursday, November 13, that’s likely not the reason traders got interested in the stock and drove it up suddenly.
At the time of this writing, shares of Intrexon were up over 10 percent on the day.
The Greenberg Effect
Herb Greenberg, a renowned and respected contributor of CNBC, discussed why Intrexon is a great stock on ‘Halftime Report’ early in the afternoon.
As Greenberg finished discussing the stock, shares of Intexron started moving up rapidly.
Traders on the Street also lapped up this opportunity and Intexron’s options saw a significant increase in activity as the implied volatility shot up through the roof.
“[…] company went public a year ago, it's run by R.J. Kirk, people either like or do not like R.J. Kirk. He is a brilliant man, I think he is very smart, he sold New River Pharmaceuticals, he ran that company, he ran Critical Data, sold them both for billions of dollars. What I really liked here is when I saw, here is a guy that has a lot of money, didn’t have to do anything with it. He invested $400 million of his own money in this business, took a 60 percent stake and on the deal, he bought 20 percent more stock” Greenberg said.
Greenberg went on to explain how Kirk has transformed the biotech industry and the past successes that Kirk has had show that the guy knows what he is doing, even though to others Intrexon may seem like a risky proposition.
Greenberg also highlighted that other major investors in the company comprise of who’s who of Wall Street including Dan Loeb’s Third Point LLC.
The only person who contradicted Greenberg’s view on the program was trader Stephen Weiss.
However, instead of pointing out flaws in the analysis provided by Greenberg, Weiss argued that Greenberg doesn't understand the working of biotech industry and that presence of well-known investors doesn't make a company successful.
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