"The upside to my short position was small, but the risk was huge," he said, adding that he had become increasingly concerned with the short thesis, especially after the FDA didn't send Abraxane to an advisory panel.

The Abraxane "event" is high-risk, but one thing is fairly certain, with American Pharmaceutical shares already rising and the short position still high, the stock is likely to surge in one direction or the other, depending on the FDA's decision.
Adam Feuerstein writes regularly for RealMoney.com. In keeping with TSC's editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet.com. He also doesn't invest in hedge funds or other private investment partnerships. He invites you to send your feedback to adam.feuerstein@thestreet.com.

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