Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Understanding how floating stocks work
"A company's float is an important number for investors because it indicates how many shares are actually available to be bought and sold by the general investing public," says Tim Speiss, co-partner in charge of the Personal Wealth Advisors Practice with EisnerAmper LLP. "Low -loat stocks typically have higher [bid-ask] spreads and higher volatility than a comparable larger float stock."
Quick tip: A bid-ask spread is the difference between how much someone will buy a security for (bid price) and how much someone else is willing to sell it for at any particular time (ask price). The smaller the bid-ask spread, the better. High-float stocks tend to have a narrow bid-ask spread, while low-float stocks often have a much wider gap.
What are low-float stocks?
While there's no industry-wide standard for what defines low-float stocks, Speiss says, many brokers consider stocks with fewer than 10 million freely available shares for trading to be a low float.
For example, Nortech Systems Incorporated currently trades on the New York Stock Exchange with 2.66 million outstanding shares. Of that, 1.16 million shares are floating. Only about 44% of this stock is available for public trading. The majority of this stock is owned by either major investors, employees, or company insiders, making it a low float.
Smaller floats like this are subject to large swings in value from news impacting a company's finances, the popularity of products, and other changes that can influence demand. According to Nasdaq, Sequential Brands' low float stock experienced a 104.57% increase in price between July 1 and 6, 2021, in spite of reports bankruptcy may be around the corner for the company. Trade volume spiked from nearly 34,000 shares on July 1 to around 13 million on July 6. Just two days later, the stock price dropped 27% and trading volume slowed to 728,000 shares.
This kind of volatility can present opportunities to buy and sell shares to quickly make money, but it isn't generally compatible with long-term investment strategies. Because the value of low-float stocks can be so unpredictable, there can be considerable risk attached to investing in them. Also, low-float stocks are in short supply, which can make it difficult to buy or sell them. The bid-ask spread may be much higher than you would find with a high-float stock as a result.
As mentioned before, companies may decide to increase their float by issuing new shares as a way to raise capital or encourage more trading. But they may also choose to reduce their float through a stock buyback, which can result in increasing the value of shares. This usually happens if the company believes its shares have been discounted too much, wants to invest in itself, or wants to see its financial ratios go up.
"A stock buyback is a way for a company to reinvest in itself," Speiss explains. "The repurchased shares are absorbed by the company and the number of outstanding shares in the market is reduced. Because there are fewer shares on the market post buyback, the relative ownership stake of each investor increases."
Quick tip: If you're interested in investing in low-float stocks, it's important to keep a very close eye on how it performs. Stock prices and volumes can rise and fall drastically several times within a single day. To make sure you're buying and selling at the right time, you need to constantly monitor the market.
Shares outstanding
Shares outstanding are the total shares of stock a company has. It includes the restricted and closely held shares, as well as the ones available for trade, whereas float refers only to the number of shares available for trading.
It's important to look at and understand how much the total stock is so you can calculate whether the float is high, low, or in the middle. You can find outstanding shares and float statistics on most investing websites and indexes. Subtract the float from the outstanding shares to find how many shares are not available for trading. That will help you better evaluate what kind of float a stock has and whether investing in it might fit into your overall strategy.
Every investor in Regencell Bioscience Holdings Limited (NASDAQ:RGC) should be aware of the most powerful shareholder groups. With 81% stake, individual insiders possess the maximum shares in the company. In other words, the group stands to gain the most (or lose the most) from their investment into the company.
And looking at our data, we can see that insiders have bought shares recently. This could signal that stock prices could go up and insiders are here for it.
Yat-Gai Au founded Regencell Bioscience so that more people can benefit from natural and holistic treatments with a goal to provide everyone equal access to such treatment for many years to come.
Throughout the last few years, several people have largely contributed to the overall success of RGC. James Chung (Chief Operating Officer) and Dr. Chao (Chief Medical Officer), who joined Regencell in 2015 and 2019, respectively, were inspired by their personal experience with TCM and the major improvements they saw on ADHD and ASD patients.
"For our company to remain true to what we believe in, and continue to head in the right direction, it's critical to have the right set of people with a shared value of interests. Our team develops programs and leads scientific trials to ensure our services and products are effective, safe and useful," shares Yat-Gai.
The company has grown to be more than just a research and development facility for the treatment of neurocognitive disorders and degenerations. "It's paving the way for extraordinary improvements in TCM to be mainstream. Why should only a small group of people or communities have access to these groundbreaking treatments?"
In a recent clinical study - EARTH Trial - results showed that RGC-COV19TM is an effective formula for the alleviation and elimination of COVID-19 symptoms within 6 days. This in return helps to reduce the risks of hospitalizations and death. The rigorous trials have shown the effectiveness of TCM and alternative medicine in a hyper-modern and tech-driven world.
Although the clinical studies completed by RGC will still need to be peer-reviewed in the coming months, there's been growing interest from the market as the company has built quite a reputation for its research and development (R&D) in the field of alternative medicine.
"We are a company that looks to make a difference where it's possible, and while our R&D may be limited to a few fields of interest, over time we'll be able to broaden our perspectives to more complex treatments," Yat-Gai briefly mentions.
Through its IPO, Regencell had net proceeds of $22.7. million, investments that helped grow the company's access to the tools and resources needed to fast-track clinical studies.
Since the company went public, Yat-Gai has noticed that short and distort organizations or individuals are starting to affect their stock price and sentiment. "Companies like ours are not given the opportunity to prove themselves since the culprits are driving down the value of smaller companies, causing the market and general public to lose its confidence. This causes damage to our company, particularly the patients, some who are desperate for a solution," he said.
To help mitigate the negative effects of such short-term schemes, Yat-Gai managed to purchase more than $5.9 million worth of ordinary company shares. To date, Yat-Gai Au is the majority shareholder, with an 81% stake in the company. This leaves around 19% of shares owned by other shareholders.
"To date, I have spent millions of my personal finances on purchasing RGC shares. My most recent purchase was worth $886,000 of RGC shares at an average price of US$39.48, increasing my shareholdings by 0.2%. I believe in the company and its future and intend to continue to put my money where my mouth is and increase my shareholdings."
Seeing as majority ownership is held within the company, oftentimes referred to as 'Insider Ownership,' it allows them to have better control over critical decision-making issues that can help fast-track the company's overall development goals.
"The decision to repeatedly purchase RGC shares over the last several months is to support and ensure the potential of the company can be met for years to come. We've vested a lot of time, energy, and resources in Regencell, and we're well aware of the potential difference it can make in the field of alternative medicine. I believe that as I lead the way our company will be able to meet the goals we've set out to achieve within the coming years."
The long-term transactions not only give the company better control over critical decision-making but enables them to boost investor sentiment.
https://www.businessinsider.com/personal-finance/stock-float
https://pro.benzinga.com/blog/how-to-find-low-float-stocks/
https://finance.yahoo.com/news/81-regencell-bioscience-holdings-limited-105517095.html
https://www.ibtimes.com/regencell-ceo-shares-his-vision-insights-aims-change-way-patients-are-treated-3600337
Things to Consider When Analyzing Small-Cap Stocks.
Management Quality: A competent management team is essential for any company, let alone a smaller one trying to establish itself in the market. Potential investors should undertake some basic online research on the key people within the company, such as the CEO and chief financial officer (CFO). Do they have a track record of running successful businesses? Also, see if the leadership team owns shares in the company. Company insiders owning stock indicates a commitment to success and aligns their interests with those of the shareholders.
Growing Sales: Small-cap companies typically have limited cash flow—therefore, they must generate healthy sales. As a rule of thumb, small-cap investors should look for stocks with an annual revenue growth rate of at least 20%, which indicates that a company has the potential for disruptive innovation within its industry and is well positioned to generate a future profit. Investors can find this information on Yahoo! Finance under the "Financials" tab, which shows a company's revenue for the past three years.
High Operating Margins: A company's operating margin represents how efficiently it can generate profit through its primary operations before paying interest and tax. When investing in small caps, it is a good idea to look for consistently increasing operating margins, as this indicates that a company is good at turning sales into profits.
Advantages of Small-Cap Stocks
Growth Potential: Small-cap stocks provide investors with significant upside by getting in early before a company potentially goes on to become an industry leader. Moreover, small-cap stocks with a market capitalization of under $1 billion can double in value much easier than companies like Amazon or Apple that have $1 trillion-plus market caps, as it takes far less money to move their share price. Additionally, a small-cap stock that goes on to realize rapid growth can gain the attention of Wall Street analysts and institutional investors, which can increase shareholder returns even further.
Less Competition from Larger Investors: Institutional investors, such as banks, hedge funds, and REITs, typically stick to investing in large-cap stocks, often overlooking many small-cap opportunities. This allows retail investors to buy the story of a future company of tomorrow without competing with traditional Wall Street money.
One ticker that has a small market cap ($412.35M) and a CEO who is holding 81% of the stock is Regencell Bioscience ($RGC).
To get a sense of who is truly in control of Regencell Bioscience Holdings Limited (NASDAQ:RGC), it is important to understand the ownership structure of the business. With 81% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises.
Data shows that insiders recently bought shares in the company and they were rewarded after market cap rose US$64m last week.
Let's take a closer look to see what the different types of shareholders can tell us about Regencell Bioscience Holdings.
What Does The Lack Of Institutional Ownership Tell Us About Regencell Bioscience Holdings?
Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company.
https://www.investopedia.com/investing/top-small-cap-stocks/
Sometimes, investors buy stocks with heavy short interest to exploit the potential for a short squeeze, but the attempt to swing for the fences sometimes ends in disaster.
A short squeeze is an unusual condition that triggers rapidly rising prices in a security due to short sellers being forced to cover their positions by buying shares. For a short squeeze to occur, the security must have an unusual degree of short-sellers holding positions in it.
Generally, a rapid rise in the stock price could be attractive, but it is not without risks. Here’s how it works: Active traders monitor highly shorted stocks and watch for them to start rising. If the price picks up momentum, the trader jumps in to buy, trying to catch what could be a short squeeze and a significant move higher.
Short squeezes are arguably always a gamble. Over the years, some stocks have moved higher after they had a heavy short interest, while in other instances, they tumbled miserably.
RGC Short Interest Compared To GameStop?
The short squeeze of American video game retailer GameStop Corp.
GME in January 2021 took the market by storm, causing major financial consequences for some hedge funds and large losses for short-sellers.
Roughly 140% of the game retailer’s public float had been sold short. There was a mad rush to buy shares to cover those positions, which caused the price to rise further.
Although a number of hedge funds participated, the short squeeze was largely triggered by users of the subreddit r/wallstreetbets.
At the height of that episode, on January 28, 2021, the short squeeze caused the retailer’s stock price to reach a premarket value of over $500 per share. The price was nearly 30 times the $17.25 valuation at the beginning of that month.
One ticker that some traders have looked at to also have short squeeze potential is Regencell Bioscience Ltd.
RGC
The short volume ratio has a similar pattern to that of GameStop with both averaging over 40% in the past year. In fact, Regencell has sometimes been more heavily shorted than GameStop, with occasional days close to 90% shorted.
Although Regencell and GameStop stocks’ short volume profiles might be considered to be similar, not as much is known about Regencell. As of May 16, the company’s founder and CEO held 10,539,159 ordinary shares, representing 81% of the total number of issued and outstanding ordinary shares in Regencell.
Regencell’s total cumulative short volume, as reported by a third-party data analytics provider, is over 19 million shares, while the total outstanding shares less CEO and Chairman’s shares is only approximately 2.4 million, yet Regencell is still trading over 289% its IPO price. Its total reported short volume to outstanding shares ratio (excluding CEO and Chairman’s shares ratio) is almost double of GameStop, being approximately 8 times whereas GameStop is slightly over 4 times. GameStop is currently trading 50x over its historical low of $2.52. Where are all the extra shares coming from?
As witnessed on Reddit and other social media and forums, especially during the GameStop short squeeze, retail shareholders came together, driven by the community’s effort to punish market participants who make a living shorting and distorting public companies, causing them to stumble and fall.
CEO’s Conviction In RGC
Regencell Founder and CEO Yat-Gai Au’s believes in a better and brighter future for the company. He says he has demonstrated his commitment and confidence and his position against possible short and distort sellers by using his own money, amounting to over $5 million, to purchase Regencell shares. Moreover, he has support from Samuel Chen, a very successful early Zoom Video Communications, Inc. investor. Samuel owned 8.8% of Zoom shares and was the second largest individual investor.
To date, Mr. Au has converted his shareholders’ loan of $3.25 million to Regencell’s ordinary shares upon listing. He has also pledged not to draw a salary and bonus of more than $1 until Regencell reaches a $1 billion market capitalization and reserved share options for all employees except himself.
Additionally, to demonstrate commitment to Regencell, all directors and employees who were previously granted stock options upon Regencell’s IPO have agreed to a further lock-up undertaking for a period of six months after their stock options become vested. As their stock options are set to vest on July 16, 2022, their shares will remain locked up until January 16, 2023.
Whether or not the ticker will encounter a short squeeze is anyone’s guess, but some traders are keeping their eyes on a host of companies that seem to have outsized short interests.
https://www.benzinga.com/general/biotech/22/06/27567868/traders-may-keep-hunting-for-another-squeezable-stock-like-gamestop-how-does-this-tickers-short-i
The amount of bearish bets against Hong Kong stocks has risen to levels that could trigger a surge in share prices as traders rush to close out their positions, according to quantitative analysts at Morgan Stanley.
Hedge funds and other short sellers say they’re either covering bearish wagers or planning to do so, strategist Gilbert Wong wrote in emailed comments Wednesday. Short-selling activity was running at just under 20% of total turnover on the city’s stock market this week, a level not seen since May, calculations by Bloomberg based on exchange data showed.
“We believe the risk of short squeeze in China and Hong Kong equities is rising,” Wong said. “Stay alert.”
Betting against Hong Kong’s stock market has proven to be a profitable trade this year, with the Hang Seng Index down over 20% at its low point in March on fears of an economic slowdown and regulatory overreach. Global investors are so underweight Chinese assets that bearish equity bets were considered one of the most-crowded trades in Bank of America Corp.’s investor survey earlier this year.
But it can also be a perilous one -- in the middle of that month, a coordinated pledge from China’s top regulators to address investor concerns triggered a two-day, 17% surge in the benchmark.
Theories on what could lead to a rebound this time range from beaten-down valuations, low positioning after August redemptions and signs of increased stimulus from Beijing. The Hang Seng climbed as much as 3.3% Thursday after China announced additional measures to boost infrastructure spending. The Hang Seng Tech index rallied 5.3%, with Alibaba Group Holding Ltd. surging 8.1%.
While short-covering flows may have little to do with fundamental changes in the outlook for Chinese equities, some investors are behaving like the best of the bearish-China trade is behind them.
“They believe further market downside is limited from current levels because positioning is low and very defensive,” said Wong.
One ticker that is Hong Kong based, that some traders have looked at to also have short squeeze potential is Regencell Bioscience Ltd.
The short volume ratio has a similar pattern to that of GameStop with both averaging over 40% in the past year. In fact, Regencell has sometimes been more heavily shorted than GameStop, with occasional days close to 90% shorted.
Although Regencell and GameStop stocks’ short volume profiles might be considered to be similar, not as much is known about Regencell. As of May 16, the company’s founder and CEO held 10,539,159 ordinary shares, representing 81% of the total number of issued and outstanding ordinary shares in Regencell.
Regencell’s total cumulative short volume, as reported by a third-party data analytics provider, is over 19 million shares, while the total outstanding shares less CEO and Chairman’s shares is only approximately 2.4 million, yet Regencell is still trading over 289% its IPO price. Its total reported short volume to outstanding shares ratio (excluding CEO and Chairman’s shares ratio) is almost double of GameStop, being approximately 8 times whereas GameStop is slightly over 4 times. GameStop is currently trading 50x over its historical low of $2.52. Where are all the extra shares coming from?
As witnessed on Reddit and other social media and forums, especially during the GameStop short squeeze, retail shareholders came together, driven by the community’s effort to punish market participants who make a living shorting and distorting public companies, causing them to stumble and fall.
https://www.bloomberg.com/news/articles/2022-08-25/hong-kong-short-squeeze-is-rising-risk-for-morgan-stanley-quants
https://www.benzinga.com/general/biotech/22/06/27567868/traders-may-keep-hunting-for-another-squeezable-stock-like-gamestop-how-does-this-tickers-short-i
Why This Biotech Stock Is Worth A Shot
RGC launched a follow-up research for their experimental liquid formula RGC-COV19TM in the treatment of COVID-19 symptoms on May 18, 2022. (EARTH-B Trial). The second study expanded on the encouraging findings from the initial EARTH experiment (EARTH-A Trial), which was carried out in 2020–2021. In the two studies, 95.5 percent of the participants (n=81) reported complete symptom relief six days after therapy, with the exception of occasional coughing and loss or reduction in sensation of taste and/or smell (sensory dysfunction).
RGC anticipates publishing data from its second clinical research of its standardised TCM formula for the treatment of ASD and ADHD in the coming months.
In order to set standards for therapy, dosing, adverse effects (AEs), and assessing patient response in a methodical and reproducible manner, Regencell Bioscience's initial clinical study was created. Seven adolescents with clinically confirmed ASD or ADHD, ranging in age from five to eleven, participated in the 2018–2019 study. Subjects got a personalised TCM formula for up to three months after stopping all current treatments and medications. Parental interviews and four validated assessment tools, such as the Autism Treatment Evaluation Checklist (ATEC), Gilliam Autism Rating Scale (GARS), Vanderbilt ADHD Diagnostic Parent Rating Scale (VADRS), and Pelham (SNAP)-IV 26-item Parent Rating Scale, were used to gauge the responses of the patients (SNAP-IV-26). During the course of treatment, all seven patients showed a reduction in symptoms on all four scales.
The second clinical trial assesses how three standardized TCM formula mixes (for mild, moderate, and severe impairment) respond to children in the same age group. Weekly practitioner meetings, twice daily medication for three to twelve months, and monthly assessments are all part of the study's design. The outcomes will be used to submit a proprietary Chinese medicine (pCm) registration application in Hong Kong, making the product available for purchase both over the counter and in other clinic.
To support its findings, Regencell is concentrating on its clinical research. Through these initiatives, the infrastructure for manufacturing and the supply chain that is needed to obtain pCm registration will be built. The commercialization of Regencell Bioscience's standardised formulations and pCm registration in Hong Kong are both subject to a four-year timeline. A lot of tasks lie ahead for the company:
•Finishing its second clinical trial and reviewing outcomes.
• Running more clinical studies to support the use of its patented formulas for ASD/ADHD and other uses.
• Getting IP protection in Hong Kong and other markets through the acquisition of patents and other types of IP.
• Setting up a manufacturing infrastructure and supply chain that complies with registration criteria.
• Compiling and filing paperwork for pCm approval.
• Develop the infrastructure and marketing and distribution plan.
We are encouraged by RGC's thoughtful, methodical approach to developing its therapies and communicating its progress to shareholders, which we believe may be a sign of greater things to come as it moves towards commercialization. RGC's steady share price ascent in recent weeks.
• Completing its second clinical trial and evaluating results.
• Conducting additional clinical trials to support its proprietary formulae in ASD/ADHD and other applications.
• Obtaining patents and other forms of IP protection in Hong Kong and other markets.
• Establishing manufacturing capability and supply chain that will meet registration requirements.
• Assembling and filing documentation for pCm approval.
• Build out its marketing and distribution strategy and infrastructure.
•
RGC’s steady share price ascension in recent weeks may be a sign of greater things to come as its moves towards commercialization, we are encouraged by its thoughtful, systematic approach to developing its therapies, and communicating its progress to shareholders.
https://finance.yahoo.com/news/rgc-ceo-figuratively-putting-money-092700965.html
Biotech stocks could be a big opportunity for exponential gains
Biotech stocks are always in the spotlight as the sector itself has been the source of significant disruptions for the global healthcare system. Long sought after by both high-risk investors and low-risk investors, biotechnology stocks offer something that other stocks do not: highly speculative opportunities. Because many of these companies are involved in early phase trials of things like novel drugs, a positive result at any phase can end up producing a favorable reaction in the stocks market. And for biotech stock investors, this could be a big opportunity for exponential gains.
Regencell Bioscience, an early-clinical bioscience company which focuses on the research and development of Traditional Chinese Medicine (TCM) to holistically treat neurocognitive disorders and also infectious diseases which affects the immune system such as COVID-19.
The company have been researching and conducting studies to address the fundamental causes of ADHD and ASD disorders. The goal is to improve the lives of ADHD and ASD patients, their families and caregivers and become a market leader for the treatment of these disorders. $rgc aim to achieve improvements in both symptoms and overall health of patients as compared to currently available medications in the market. They are passionate about transforming the lives of patients, their families and caregivers and help them feel their best physically, mentally and emotionally!
Nasdaq Listing
On July 16, 2021, the ordinary shares began trading on the Nasdaq Capital Market. The company raised net proceeds of approximately $19.3 million from the initial public offering of 2,300,000 ordinary shares at a public offering price of $9.50 per share. They plan to use these proceeds to fund for the second research study (currently ongoing), TCM formulae and products, staff salaries, product and intellectual property registrations, facilities rental, renovations and equipment, for working capital and other general corporate purposes.
Regencell Bioscience $RGC; Upcoming results in follow-on study of ASD/ADHD treatment formula.
Founded in 2014, Hong Kong-based Regencell Bioscience (NASDAQ:RGC) is an early clinical stage bioscience company using Traditional Chinese Medicine (TCM) approach to develop standardized TCM formulas to holistically treat autism spectrum disorder (ASD) and attention deficit hyperactivity disorder (ADHD) in children, and infectious diseases such as the coronavirus disease (COVID-19).
Regencell Bioscience is expected to report results of a follow-on study for its ASD/ADHD treatment. Currently, the Company is working towards the production of an effective standardized formula for commercialization purposes.
The formula is based on the “Sik-Kee Au TCM Brain Theory®” that ASD and ADHD stem from inadequate blood flow and creation of neurotransmitters in the developing brain. As we discussed earlier, this hypothesis is complementary to the western medicine view that ASD and ADHD are present at birth and arise from developmental differences in brain function.
Regencell Bioscience’s first clinical trial was designed to establish benchmarks for treatment, dosing, adverse effects (AEs) and measuring patients’ response in a systematic and repeatable way, while evaluating the effectiveness of a customized TCM formula.
As a customized formula is designed to suit each patient’s symptoms, the ability for it to be produced in large quantities is limited as compared to a standardized formula. Regencell is currently evaluating and assessing the effectiveness of a standardized TCM formula in reducing ADHD and ASD symptoms in children through a holistic approach within 3 months of treatment, in its second efficacy trial.
Path to registration and commercialization
Regencell Bioscience has a four-year timeframe to commercialize its standardized formulations and gain proprietary Chinese medicine (pCm) registration in Hong Kong. The Company has a number of tasks ahead:
• Completing its second clinical trial for ASD/ADHD and COVID, and evaluating results.
• Conducting additional clinical trials to support its proprietary formulae in ASD/ADHD and other applications.
• Obtaining patents and other forms of IP protection in Hong Kong and other markets.
• Establishing manufacturing capability and supply chain that will meet registration requirements.
• Assembling and filing documentation for pCm approval.
• Build out its marketing and distribution strategy and infrastructure.
We believe that an emphasis on conducting well-designed clinical trials that measure outcomes based on well-established assessment instruments, will provide Regencell Bioscience with a competitive advantage in terms of expertise and credibility in an industry that is moving towards higher standards for efficacy, safety and quality. While there is still much work to do, in our view, Regencell Bioscience is taking a thoughtful, systematic approach to developing its TCM formulae.
https://finance.yahoo.com/news/rgc-second-investigational-study-rgc-094600752.html?guccounter=1&guce_referrer=aHR0cHM6Ly9rZWVwLmdvb2dsZS5jb20v&guce_referrer_sig=AQAAAJUD3LXLIHsU8iLYDxujMiuklkHij3sauxd7hYyUmY0-x56FaELKmIMmT54roEpSW_8EwnyhOrR8X9AjAfos7RAJ-4zzEQRxY9Zaa3pJ3K3_j7-umkaN3crXyBeSSm1Wjx5dWoA0aIwn6fMvD8GAOmw7h-b5SiLYlbKikylxU6N-
3 Reasons Why Companies Buy Back Stocks
Investopedia, 2019.
Stock Buybacks Preserve the Stock Price
Shareholders usually want a steady stream of increasing dividends from the company. And one of the goals of company executives is to maximize shareholder wealth. However, company executives must balance appeasing shareholders with staying nimble if the economy dips into a recession.
Why do some favor buybacks over dividends? If the economy slows or falls into recession, a company might be forced to cut its dividends to preserve cash. The result would undoubtedly lead to a sell-off in the stock. However, if the bank decided to buy back fewer shares, achieving the same preservation of capital as a dividend cut, the stock price would likely take less of a hit.
Committing to dividend payouts with steady increases will undoubtedly drive a company's stock higher, but the dividend strategy can be a double-edged sword. In the event of a recession, share buybacks can be decreased more easily than dividends, with a far less negative impact on the stock price.
The Stock Is Undervalued
Another major motive for businesses to do buybacks is that they genuinely feel as if their shares are undervalued. Undervaluation occurs for several reasons, often due to investors' inability to see past a business' short-term performance, sensationalist news items, or a general bearish sentiment. For example, a wave of stock buybacks swept the United States in 2010 and 2011 when the economy was recovering from the Great Recession.
Many companies began making optimistic forecasts for the coming years, but company stock prices still reflected the economic doldrums that plagued them in years prior. These companies invested in themselves by repurchasing shares, hoping to capitalize when share prices finally began to reflect new, improved economic realities.
If a stock is dramatically undervalued, the issuing company can repurchase some of its shares at this reduced price and then re-issue them once the market has corrected, thereby increasing its equity capital without issuing any additional shares. However, investors may be reluctant to purchase the re-issued shares if they feel they've been burned by a company this way.
RGC Ownership Breakdown
To get a sense of who is truly in control of Regencell Bioscience Holdings Limited (NASDAQ:RGC), it is important to understand the ownership structure of the business. With 81% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises.
Data shows that insiders recently bought shares in the company and they were rewarded after market cap rose US$64m last week.
Let's take a closer look to see what the different types of shareholders can tell us about Regencell Bioscience Holdings.
What Does The Lack Of Institutional Ownership Tell Us About Regencell Bioscience Holdings?
Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company.
Hedge funds don't have many shares in Regencell Bioscience Holdings. With a 81% stake, CEO Yat-Gai Au is the largest shareholder. With such a huge stake, we infer that they have significant control of the future of the company. It's usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider with such skin in the game. In comparison, the second and third largest shareholders hold about 7.6% and 0.1% of the stock.
Insider Ownership Of Regencell Bioscience Holdings
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Insider ownership is positive when it signals leadership are thinking like the true owners of the company.
Most recent data indicates that insiders own the majority of Regencell Bioscience Holdings Limited. This means they can collectively make decisions for the company. So they have a US$430m stake in this US$531m business. Most would be pleased to see the board is investing alongside them.
General Public Ownership
With a 11% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Regencell Bioscience Holdings. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Equity Ownership
With a stake of 7.6%, private equity firms could influence the Regencell Bioscience Holdings board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
https://www.investopedia.com/ask/answers/042015/why-would-company-buyback-its-own-shares.asp#:~:text=A%20company%20repurchases%20its%20shares%20when%20it%20wants%20to%20consolidate,taken%20the%20place%20of%20dividends.
https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-rgc/regencell-bioscience-holdings/news/regencell-bioscience-holdings-limited-nasdaqrgc-insiders-hav?utm_medium=article&utm_source=robinhood
https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-rgc/regencell-bioscience-holdings#information
Biotech stocks have been on a roller-coaster ride, but continue to outperform the broader market.
In 2021, the industry was thrust into the pandemic limelight as Pfizer (PFE) and its partner BioNTech (BNTX), Moderna (MRNA) and Johnson & Johnson (JNJ) launched a trio of Covid vaccines. But as society learned to live with Covid — and other concerns around the economy, inflation and politics took center stage — interest in biotech fell by the wayside. Shares of Investor's Business Daily's biotech industry group largely declined for 16 months.
Until now.
After hitting a six-year low in mid-June, biotech stocks seem to have regained their footing. Shares rose 40% from that point through mid-August, before tapering slightly down. But the slight decline comes amid a steeper dive for the broader market. The group is ranked sixth out of 197 industry groups tracked by Investor's Business Daily. Meanwhile, the pharma group ranks No. 129.
"The sector has started to show signs of a rebound, and we believe several key data events in the coming months as well as any pickup in (mergers and acquisitions), will likely be pivotal in determining whether investor risk appetite will increase and help sustain the recovery," RBC Capital Markets analyst Brian Abrahams said in a recent report.
But it's key to watch specific measures when examining stocks. In terms of fundamental and technical measures as well as 12-month performance, the best biotech stocks today are:
Catalyst Pharmaceuticals (CPRX)
Vertex Pharmaceuticals (VRTX)
Genmab (GMAB)
Neurocrine Biosciences (NBIX)
Supernus Pharmaceuticals (SUPN)
The No. 1 Biotech Stock
Catalyst is the No. 1 biotech stock, leading an industry group of more than 800 companies.
Its only product is Firdapse, a treatment for Lambert-Eaton myasthenic syndrome, or LEMS. LEMS is a rare autoimmune condition that saps muscle strength and often occurs in lung cancer patients.
Though sales are growing, the company is looking to acquire a second or third product — either through an outright buyout or licensing deal.
Now, the biotech stock is extended above a cup base with a buy point at 8.74, MarketSmith.com shows.
Catalyst shares are also on the Tech Leaders list.
Bullishly, CPRX shares have a best-possible Composite Rating of 99, according to IBD Digital. This puts the biotech stock in the top 1% of all stocks in terms of fundamental and technical measures. Its 12-month performance, measured by the Relative Strength Rating, is also in the top 1% of all stocks.
Moving Beyond Cystic Fibrosis
Vertex is one of the biggest biotech stocks in terms of market cap. It ranks fourth behind Amgen (AMGN), Gilead Sciences (GILD) and Regeneron Pharmaceuticals (REGN).
The company is the de facto leader of the cystic fibrosis drug market. Second-quarter sales — dominated by its triple regimen Trikafta — jumped 22% to almost $2.2 billion.
But it's now expanding into other efforts. Vertex is partnered with Crispr Therapeutics (CRSP) on a gene-editing approach to a pair of blood diseases. Further, Vertex recently announced its $320 million plan to buy its partner in diabetes treatment, privately held ViaCyte. The companies are testing a cell replacement drug in type 1 diabetes.
Beyond that, Vertex is testing treatments for liver and kidney diseases, Duchenne muscular dystrophy and pain.
The biotech stock has a perfect Composite Rating and a Relative Strength Rating of 95. But shares are now sitting just below their 50-day moving average.
The company is also a Tech Leader.
Cancer Treatments Are Key
Genmab sells a small handful of treatments for cancer. The company partners with big biopharma names, including AbbVie (ABBV), Johnson & Johnson (JNJ), Horizon Therapeutics (HZNP) and Seagen (SGEN).
In the second quarter, adjusted earnings and sales increased bullishly to 40 cents per share and $440 million, respectively. Both measures also easily topped forecasts.
Now, Genmab on expanding its suite of medicines to new solid tumors and blood cancers.
Shares have a perfect Composite Rating of 98 and a Relative Strength Rating of 73. Genmab is also a Tech Leader.
Gaining Pipeline Recognition
Biotech stock investors are watching catalysts galore for Neurocrine Bio in the second half of 2022 and next year. The company sells a movement disorder treatment called Ingrezza. Ingrezza brought in $350 million in net sales in the second quarter, growing by double digits and beating forecasts.
Neurocrine also raised its Ingrezza sales expectations for the year to $1.35 billion to $1.4 billion.
Meanwhile, the company has a number of drugs in the works for schizophrenia, depression and an adrenal disorder — to name just a few.
The biotech stock's relative strength line is at a 52-week high. Shares also have a promising Composite Rating of 97 and a Relative Strength Rating of 93. Neurocrine stock is forming a flat base with a buy point at 109.36.
Plus, NBIX shares land on the Tech Leaders list.
New Approach To ADHD
Supernus is best known for its migraine prevention drug, Trokendi, but biotech stock investors are also watching the growth trajectory for Qelbree. Qelbree is a non-stimulant treatment for attention deficit hyperactivity disorder, or ADHD. Regulators have approved it for people as young as 6.
In the June quarter, Qelbree prescriptions surged by a third to 62,938. Sales grew 34% to $11.1 million. That helped offset a 9% decline for Trokendi.
The company also is working on treatments for Parkinson's disease, treatment-resistant depression and epilepsy.
The biotech stock recently broke out of a lengthy double-bottom base with an entry at 34.55. Shares slid below their buy point in late August. Since then, they have bounded into and out of the 5% chase zone.
Supernus stock is also a Tech Leader.
There is another biotech stock that is worth to look at which is Regencell Bioscience, $RGC.
As an early-stage bioscience company, Regencell Bioscience is a Hong Kong-based company focused on the research, development, and commercialization of Traditional Chinese Medicine (TCM) for the treatment of neurocognitive disorders and degenerations.
Regencell has become a leader that's spearheading forward as a global influence that looks to alleviate the unmet medical needs of millions of people around the world. Through their efforts, the company researches and develops treatments for ADHD and ASD patients and infectious diseases that affect the human immune systems.
On July 16, 2021, the company went public through an Initial Public Offering on the stock market with 2.3 million ordinary shares at a public offering price of $9.50. Over the last 12 months of trading, share prices have climbed by approximately 247.31% even though market conditions have been slowing since the start of the year.
Amid a flurry of investors now locking up high-yielding stocks as a way to secure their portfolios, RGC has solidified itself in the market, while spearheading the development and commercialization of TCM.
https://www.investors.com/news/technology/biotech-stocks-the-top-5-to-watch-amid-a-blazing-hot-run/
3 Small Cap Biotech Stocks to Watch in 2022
Small cap biotech stocks are giving investors new ways to make big money. Many scientists believe that we’re in the golden age of innovation in the ways we treat diseases. Moreover, this presents a unique opportunity for investors.
COVID-19 brought a lot of attention to the biopharmaceutical industry. 2021 proved to be a record-setting year with the development of vaccines for the pandemic. However, biotech, covers far more than vaccine developments.
These companies are the future of modern medicine. Humanity is continuing to take leaps in understanding human biology and the biology of various diseases. As a result, biotech companies are able to better target illnesses. Furthermore, new advances in science are opening doors for the treatment and prevention of diseases like never before.
There’s an opportunity for big gains in the biotechnology sector. However, you should know that the industry comes with some risks. So, if you can stomach high-risk investments with the potential for high returns, small cap biotech stocks might be your cup of tea.
It’s important to judge biotech stocks as more companies enter the market. To make things easier, we’ve put together a list of small cap biotech stocks worth watching. So, let’s take a look…
Top 3 Small Cap Biotech Stocks to Watch
These are a few small cap biotech stocks to watch closely in 2022:
Dynavax Technologies (Nasdaq: DVAX)
Viridian Therapeutics (Nasdaq: VRDN)
Aerovate Therapeutics (Nasdaq: AVTE)
Dynavax Technologies
Dynavax is a biopharmaceutical company that uses Toll-like receptor biology for the development of vaccines. Specifically, the company has developed HEPLISAV-B, a vaccine to help prevent subtypes of the Hepatitis B virus in adults 18 years and older. HEPLISAV-B is approved and commercialized in the U.S. and the European Union.
Dynavax’s HEPLISAV-B contains a proprietary toll-like receptor 9 agonist adjuvant called CpG 1018. Moreover, the company is leveraging its CpG 1018 adjuvant to provide long-term value. While driving revenue, the company collaborates with other companies to advance the adjuvant as a premier vaccine adjuvant.
Current collaborations are focused on adjuvanted vaccines for COVID-19, plague, Tdap and universal influenza. This should be a huge growth driver for the company over 2022. As a result, Dynavax is one of the top small cap biotech stocks to watch in 2022.
Viridian Therapeutics
Viridian Therapeutics is a biotechnology company advancing new treatments for serious diseases that are underserved. The company’s headquarters are in Boulder, Colorado, with research and development operations in Waltham, Massachusetts.
Viridian’s lead program, VRDN-001, is a monoclonal antibody targeting the insulin-like growth factor-1 receptor (IGF-1R) for thyroid eye disease. ImmunoGen previously developed the IGF-1R antibody. Viridian’s development plans for VRDN-001 are informed by pharmacokinetic, pharmacodynamic, safety and tolerability data collected in that program.
In 2020, the company obtained exclusive rights from ImmunoGen to develop, manufacture and commercialize VRDN-001. It is suitable for all non-oncology indications that do not involve radiopharmaceuticals, including the treatment of TED.
Furthermore, the company is developing a second-generation candidate, VDRN-002. The product is distinct from VRDN-001 due to its half-life extension technology and subcutaneous administration. The company filed an Investigational New Drug (IND) application for VRDN-001 in October 2021. It plans to file an IND for VRDN-001 in Q4 2021. As a result, this progress makes this small cap biotech stock an intriguing prospect.
Aerovate Therapeutics
Aerovate Therapeutics is a clinical-stage biotech company. The company focuses on therapies for rare cardiopulmonary diseases.
In December, the company announced the initiation of its Inhaled Imatinib Pulmonary Arterial Hypertension Clinical Trial (IMPAHCT) Phase 2b/Phase 3 trial. The trial will evaluate the safety and efficacy of AV-101 (dry powder inhaled imatinib) in adult patients with Pulmonary Arterial Hypertension (PAH). At the time of the announcement, Aerovate CEO Tim Noyes said…
We are excited and humbled to initiate this Phase 2b/Phase 3 trial of AV-101. Starting enrollment represents an important milestone for Aerovate Therapeutics and advances our goal of improving the lives of patients suffering from rare cardiovascular diseases.
The company will report results from its Phase 2b trial in mid-2023. Trial results showing less adverse reactions from oral imatinib in PAH patients could be a major advancement for patients with cardiopulmonary disease. Furthermore, this presents a huge growth opportunity for Aerovate Therapeutics stock.
There is another biotech stock that is worth to look at which is Regencell Bioscience, $RGC.
As an early-stage bioscience company, Regencell Bioscience is a Hong Kong-based company focused on the research, development, and commercialization of Traditional Chinese Medicine (TCM) for the treatment of neurocognitive disorders and degenerations.
Regencell has become a leader that's spearheading forward as a global influence that looks to alleviate the unmet medical needs of millions of people around the world. Through their efforts, the company researches and develops treatments for ADHD and ASD patients and infectious diseases that affect the human immune systems.
On July 16, 2021, the company went public through an Initial Public Offering on the stock market with 2.3 million ordinary shares at a public offering price of $9.50. Over the last 12 months of trading, share prices have climbed by approximately 247.31% even though market conditions have been slowing since the start of the year.
Amid a flurry of investors now locking up high-yielding stocks as a way to secure their portfolios, RGC has solidified itself in the market, while spearheading the development and commercialization of TCM.
The Bottom Line on Small Cap Biotech Stocks
Investors are always on the lookout for good deals. The small cap biotech stocks above have great growth potential. With biotech leading the charge to find treatments for diseases, cancers, and viruses, investor interest is at an all-time high.
Nevertheless, not every investor can handle the risk. So, you’ll need some risk tolerance if you want to invest in small cap biotech stocks. However, if you can stomach it, your investment may have the potential to outpace the market.
Furthermore, for more biotech investing opportunities, check out these biotech penny stocks to consider for your portfolio.
https://investmentu.com/small-cap-biotech-stocks/
Here Are The Penny Stocks Of Companies Working On Long Covid, From Axcella To Tonix
A handful of small companies are working on long Covid treatments — sorely needed tools as the number of those afflicted grows.
More than four in 10 people — 43% — said in a recent TIPP poll that they knew someone with long Covid, a condition where symptoms persist for several weeks or longer.
Long Covid is particularly complicated because there's no set list of symptoms. The Centers for Disease Control and Prevention notes a wide array of ongoing health problems that could include fatigue, shortness of breath, neurological and digestive symptoms as well as joint or muscle pain.
But so far, large companies are shying away from treating the condition.
Instead, small companies have taken up the mantle in long Covid treatment. They include Axcella Therapeutics (AXLA), First Wave BioPharma (FWBI), Ampio Pharmaceuticals (AMPE), Regencell Bioscience (RGC), Aim ImmunoTech (AIM), Tonix Pharmaceuticals (TNXP) and privately held Humanetics.
Regencell ($RGC), standardized TCM formulae are natural, orally administered liquid TCM formulae for the treatment of ADHD and ASD.
In conducting its second efficacy trial, the standardized TCM formulae were administered to children twice daily for a period of 3 months.
Regencell standardized TCM formulae were developed by our strategic partner TCM Practitioner based on his Sik-Kee Au TCM Brain Theory® and consists solely of natural ingredients without any synthetic components. The TCM formulae have been used for over 30 years to treat ADHD, ASD and many other neurological illnesses, disorders and diseases and have achieved positive clinical treatment results.
The TCM brain theory explains why a healthy brain is essential in restoring the body’s systems to normal. According to the TCM brain theory, the blockage of or reduced blood flow, and damage of the interconnecting central nervous system, endocrine system and blood circulatory system disrupt the production of hormones and transmission of neurotransmitters, such as melatonin, dopamine, and norepinephrine, leading to a defective encoding and decoding of functions, and resulting in deficient or abnormal social behaviors that are the hallmarks of ADHD and ASD.
Long Covid Treatments: Up To 23 Million
Axcella, Ampio, Regencell and Tonix include long Covid treatments in their pipelines. First Wave is working on gastrointestinal side effects of Covid-19. Aim is testing out a treatment for Covid-19 patients with cancer. Humanetics is looking at lung injuries in Covid-19 patients.
The U.S. Government Accountability Office estimates up to 23 million people in the U.S. have long Covid. Research is still in its infancy, though. Not every Covid-19 case is diagnosed. Further, symptoms of long Covid vary and manifest themselves differently in each person.
The phenomenon isn't new. Survivors of the original SARS virus have reported chronic fatigue four years after the initial infection. The GAO estimates the post-Covid condition could push 1 million Americans out of the workforce, highlighting the need for long Covid treatments.
Large Companies Focus On Acute Covid
Among large companies, vaccines and acute treatments have been more popular than research into long Covid treatments.
Pfizer (PFE), Merck (MRK), Regeneron Pharmaceuticals (REGN), Eli Lilly (LLY), Vir Biotechnology (VIR) and Gilead Sciences (GILD) make treatments for Covid-19 patients, including pills and infusions.
Pfizer, Moderna (MRNA) and Johnson & Johnson (JNJ) make Covid-19 vaccines.
In the TIPP poll, 23% of people knew someone who experienced a serious side effect due to a Covid-19 vaccine. A slightly higher percentage, 34%, knew someone who had a non-serious reaction after receiving a Covid-19 shot. Recent testing shows Covid-19 vaccines lower the risk of long Covid by 15%.
https://www.investors.com/news/technology/long-covid-treatments-here-are-the-penny-stocks-working-on-this-growing-problem/
The Downturn For Big Pharma
The bullish turn for biotech since June has come in lockstep with a downturn for Big Pharma stocks. Just three months ago, the pharmaceuticals group ranked No. 34 out of 197. It has now tumbled 100 spots, ranking No. 134.
Earlier this year, rising interest rates and inflation worries sent investors
scrambling for less risky stocks. In the world of medicine, Big Pharma fits that bill. Pharmaceutical companies sell widely used products like cholesterol and cancer drugs. Biotech companies, on the other hand, are working on cutting-edge treatments where losses outnumber game-winning touchdowns. Then, investors “cared a lot more about businesses that have predictable cash flows today, as opposed to the businesses that have the promise of really big predictable cash flows in the future,” Swalla said.
“I think biotech and technology stocks suffered the same fate from an institutional-investor standpoint.” But now, experts say the paradigm
is shifting from a “risk off” environment favoring companies with stable, predictable cash flows to more growth-oriented plays. And when it comes to growth, biotech tends to be among the most eye-catching segments.
Lee Brown, sector lead for health care at research firm Third Bridge,
says biotech stocks could actually offer investors a safe haven amid
economic uncertainty. “If you’re worried about the economic climate for next year, then being in more idiosyncratic growth sectors is right out of the portfolio manager playbook,” he told IBD. Eric Schiffer, who chairs private
equity firm The Patriarch Organization, has a more measured view. He says biotech remains tied to macroeconomic woes, but these stocks have been more beat-up than others and could offer investors a low point for entry. “What we do know is there’s incredible discoveries ahead that will be worth millions of dollars,” he said. “We’re in a cycle. This is a cycle that will see a bull period ahead. We just don’t know when. If investors have a long enough ride, they can do fine. They’re getting in at great valuations.”
https://www.investors.com/
Regencell Bioscience Holdings Limited is an early-stage bioscience company that focuses on the research, development and commercialization of TCM for the treatment of neurocognitive disorders and degenerations, specifically ADHD and ASD, and infectious diseases affecting people’s immune system such as COVID-19. Regencell has completed its first research study using personalized TCM formulae for the treatment of ADHD and ASD in Hong Kong and aims to launch three liquid-based standardized TCM formulae candidates for mild, moderate and severe ADHD and ASD patients initially in Hong Kong and subsequently in other markets as it deems appropriate. The Company has formed a joint venture to offer COVID-19 related treatments to patients in ASEAN countries, India, Japan, Australia and New Zealand. For more information, please visit www.regencellbioscience.com and www.regencellasia.com.
Numerous biotech firms, from top-rated Catalyst Pharmaceuticals to powerhouses like Neurocrine Biosciences and BioMarin Pharmaceutical, down to relatively unheard-of Karuna Therapeutics, are soaring like it's a fresh bull market despite the faltering stock market. The unexpected success of the biotech companies is the result of numerous factors, not just one spark. Analysts believe that is encouraging for their long-term viability.
Regardless of how stock prices fluctuate on any given day, Loncar told Investor's Business Daily that the underlying news that determines whether biotech is moving forward or backward has recently been all positive. "Everything is pointing in the right direction," He points out that, beginning in early last year, biotech equities were the first sector to experience a decline. They are now among the first people to turn around. The biotech sector group was placed 143rd out of 197 industries just six months ago, placing it in the lowest 25% of all industry groups. Since then, the sector's top biotech stocks have propelled it to a sixth-place ranking and a combined value of $1.2 trillion.
Can biotech drive the following bull market, then? According to Thomas Swalla, CEO of privately held Dotmatics, "It should." Dotmatics creates software to support businesses in the life sciences. Swalla points out that data science, machine learning, and instrumentation are all facilitating quicker and more reliable drug development breakthroughs. IBD quoted him as saying, "I absolutely don't see any reason why biotech can't be a significant influence in the future.
Many investors, who are willing to risk some of their portfolio shares to help stabilize their position in the event of a recession, have placed major bets on the biotechnology and bioscience industry in recent months. According to a 2022 Mckinsey research report, biotech companies were able to raise more than $34 billion globally in 2021, doubling the $16 billion raised in 2020.
The same report found that between 2019 and 2021, even as the pandemic took hold of the global economy throughout the greater part of 2020, venture capital companies still invested more than $52 billion in therapeutic-based biotech companies.
Since Regencell was listed on NASDAQ in mid-July 2021, Regencell Bioscience founder and CEO, Yat-Gai Au has made purchases of ordinary company shares from the open market to alleviate the short and distort investing schemes used on the company's stocks which in the long term can negatively hurt overall stock performance. With millions of his personal finances already spent to purchase company shares, Yat-Gai Au shared why he's fully committed to this strategy and the future of the company.
About Regencell Bioscience
As an early-stage bioscience company, Regencell Bioscience (NASDAQ: RGC) is a Hong Kong-based company focused on the research, development, and commercialization of Traditional Chinese Medicine (TCM) for the treatment of neurocognitive disorders and degenerations.
Regencell has become a leader that's spearheading forward as a global influence that looks to alleviate the unmet medical needs of millions of people around the world. Through their efforts, the company researches and develops treatments for ADHD and ASD patients and infectious diseases that affect the human immune systems.
On July 16, 2021, the company went public through an Initial Public Offering on the stock market with 2.3 million ordinary shares at a public offering price of $9.50. Over the last 12 months of trading, share prices have climbed by approximately 247.31% even though market conditions have been slowing since the start of the year.
Amid a flurry of investors now locking up high-yielding stocks as a way to secure their portfolios, RGC has solidified itself in the market, while spearheading the development and commercialization of TCM.
https://www.investors.com/
https://www.ibtimes.com/regencell-ceo-shares-his-vision-insights-aims-change-way-patients-are-treated-3600337
RGC Offers Stability
Its distinctive ownership structure is one of the main causes or elements that has contributed to RGC's stability. Over 81% of the company's shares are currently held by certain insiders, making them the group most likely to profit from the stock's so far favourable performance.
On the one hand, Yat-Gai Au, the company's founder and CEO, owns the majority of RGC and is its largest stakeholder with an 81% ownership. On the other hand, the remaining stockholders hold about 19% of the RGC stock.
According to the most recent data, insiders presently possess at least $333 million of the $416 million company. When examining these scenarios, investors may be led to believe that the majority of owners are corporate executives, managers, and leaders.
Although still significant, general public ownership (11.2%) and private equity ownership (7.6%) have some ability to influence business decisions about performance and expansion. However, despite being sizable enough to matter, it cannot alter company policy.
They have better control over decision-making and their course for growth because the majority of the power is vested and held within the company. Due to the fact that board members and retail investors both invest in RGC, there is a little more stability and predictability for investors wanting to make a move.
This kind of strategy has a tug-of-war quality that may make some investors a little more suspicious of the overall state of the business and its prospects for growth. Performance indicators can be measured depending on members' strategic management and goals, albeit most of their effect comes from within.
https://tinyurl.com/2yfavbwm
Why Does RGC Make Sense, For Now At Least?
RGC is unique, and in many ways we can understand why investors have begun to take notice of the business.
The Nasdaq Biotechnology Index has only risen by 2.69% year to far, but share prices have risen by 17.03%. Share prices fluctuate between $34.79 and $35.84 on average, with some investors setting their year range closer to $59.00 per share.
The company recorded a basic diluted loss per share of $0.29 for the six months from July 2021 to December 2021, compared to a loss per share of $0.03 for the corresponding period in 2020.
The loss may have been caused by the company's unexpected rise in operational costs, which increased by about 893% from $368,465 for the six months ended December 31, 2020, to $3,658,906 for the same period in 2021.
In comparison to $0.06 million in June 2021, the company declared cash available of $19 million in December 2021. The primary source of funds was the net proceeds of the company's IPO, which also included earnings from the selling of approximately 22.7 million extra shares.
When the company first went public in July 2021, share prices were far lower than they are now. A month later, in August 2021, share prices experienced a surge of up to 204% within a single trading session. Since becoming public, Regencell has successfully treated more than 88 COVID patients, with a 94% success rate in removing symptoms within 6 days. They also have continuing clinical investigations for ADHD/ASD, and they were added to the MSCI world microcap index. Additionally, RGC was among the Nasdaq's top-performing stocks in 2021, according to www.stockanalysis.com.
Regencell began conducting early trials for ADHD/ASD in late 2017. The stock was trading in the low $20 level at the time. Share prices increased to above $40 by mid-February 2022 before declining to the $20 area.
RGC has done admirably since April 2022, with share prices swinging above $30, despite choppy market conditions and unfavourable investor sentiment. Positive clinical outcomes pertaining to the RGC-COV19 TCM formula developed by the business are what have helped the stock performance recover.
In our opinion, when the business announces a second clinical examination of a standardised TCM formulation for the treatment of ADHD and ASD, RGC will see another price fluctuation. In order to provide an industry standard for therapy, dosage, side effects, and gauging patient response, Regencell has been working on this.
Investor interest has been maintained by RGC's steady performance and encouraging track record, which has remained largely unchanged. RGC may outperform weak market conditions for investors who can more easily handle tiny purchases.
RGC is unique, and in many ways we can understand why investors have begun to take notice of the business.
The Nasdaq Biotechnology Index has only risen by 2.69% year to far, but share prices have risen by 17.03%. Share prices fluctuate between $34.79 and $35.84 on average, with some investors setting their year range closer to $59.00 per share.
The company recorded a basic diluted loss per share of $0.29 for the six months from July 2021 to December 2021, compared to a loss per share of $0.03 for the corresponding period in 2020.
The loss may have been caused by the company's unexpected rise in operational costs, which increased by about 893% from $368,465 for the six months ended December 31, 2020, to $3,658,906 for the same period in 2021.
In comparison to $0.06 million in June 2021, the company declared cash available of $19 million in December 2021. The primary source of funds was the net proceeds of the company's IPO, which also included earnings from the selling of approximately 22.7 million extra shares.
When the company first went public in July 2021, share prices were far lower than they are now. A month later, in August 2021, share prices experienced a surge of up to 204% within a single trading session. Since becoming public, Regencell has successfully treated more than 88 COVID patients, with a 94% success rate in removing symptoms within 6 days. They also have continuing clinical investigations for ADHD/ASD, and they were added to the MSCI world microcap index. Additionally, RGC was among the Nasdaq's top-performing stocks in 2021, according to www.stockanalysis.com.
Regencell began conducting early trials for ADHD/ASD in late 2017. The stock was trading in the low $20 level at the time. Share prices increased to above $40 by mid-February 2022 before declining to the $20 area.
RGC has done admirably since April 2022, with share prices swinging above $30, despite choppy market conditions and unfavourable investor sentiment. Positive clinical outcomes pertaining to the RGC-COV19 TCM formula developed by the business are what have helped the stock performance recover.
In our opinion, when the business announces a second clinical examination of a standardised TCM formulation for the treatment of ADHD and ASD, RGC will see another price fluctuation. In order to provide an industry standard for therapy, dosage, side effects, and gauging patient response, Regencell has been working on this.
Investor interest has been maintained by RGC's steady performance and encouraging track record, which has remained largely unchanged. RGC may outperform weak market conditions for investors who can more easily handle tiny purchases.
https://seekingalpha.com/article/4534812-slow-and-steady-wins-the-race-with-regencell-bioscience
The CEO of Regencell expresses his goal of the company, his vision for the future, and his insights, to change the way patients are treated.
As a result of the prolonged health crisis and rising political unrest, market and economic performance have been on the verge of a recession for the past few months, which has weighed on investor mood. In addition, some experts believe that the combination of the Federal Reserve raising interest rates and the nation's spiraling inflation, which has reached yet another 40-year high, is a surefire prescription for a recession.
Despite all these financial difficulties, several industries have been trying to entice investors with innovative strategies as businesses increase their impact and market domination.
Many investors have recently made sizable investments on the biotechnology and bioscience industry, willing to take a chance on some of the shares in their portfolio to help stabilise their position in the case of a recession. A Mckinsey research report from 2022 claims that biotech companies raised more than $34 billion globally in 2021, more than double the $16 billion raised in 2020.
According to the same study, even while the pandemic gripped the world economy for the most of 2020, venture capital companies continued to spend more than $52 billion in therapeutic-based biotech startups between 2019 and 2021.
Yat-Gai Au, the founder and CEO of Regencell Bioscience, has made purchases of ordinary company shares from the open market since Regencell was listed on NASDAQ in mid-July 2021 in an attempt to deal with the short and disrupted investing schemes used on the company's stocks, which over time can have a negative impact on overall stock performance. Yat-Gai Au explained why he is fully devoted to this plan and the future of the company, having already invested millions of his personal funds to purchase company shares.
https://www.ibtimes.com/regencell-ceo-shares-his-vision-insights-aims-change-way-patients-are-treated-3600337
Taking everything into account, RGC scores 8 out of 10 in our technical rating. RGC has been one of the better performers in the overall market. Some doubts were observed in the medium time frame, but recent action was again very positive.
The long term trend is still neutral, but the short term trend is positive, so the stock is getting more and more appreciated by traders and investors.
RGC is one of the better performing stocks in the Pharmaceuticals industry, it outperforms 89% of 269 stocks in the same industry.
In the last month RGC has a been trading in the 26.12 - 34.00 range, which is quite wide. It is currently trading near the high of this range.
When comparing the yearly performance of all stocks, we notice that RGC is one of the better performing stocks in the market, outperforming 94% of all stocks. On top of that, RGC also shows a nice and consistent pattern of rising prices. The S&P500 Index is currently trading in the lower part of its 52 week range, so RGC is still doing slightly better than the market.
Source: https://www.chartmill.com/stock/quote/RGC/technical-analysis?utm_source=twitterUS&utm_medium=TA&utm_content=RGC&utm_campaign=social_tracking
Regencell Bioscience Forward-looking Statements
https://www.businesswire.com/news/home/20220912005506/en/Regencell-Bioscience%E2%80%99s-Standardized-Formulae-Are-Shown-to-Reduce-ADHD-and-ASD-Symptoms-in-the-Interim-Results-of-its-Second-Efficacy-Trial
This press release contains “forward-looking statements” within the meaning of applicable laws, including U.S. federal securities laws. These forward-looking statements may include, but are not limited to, statements relating to our objectives, plans, and strategies; statements that contain projections of results of operations or of financial condition; statements relating to the research, development, and use of our platform technologies, technologies, products and product candidates; and all statements that address activities, events, or developments that we intend, expect, project, believe, or anticipate will or may occur in the future. The risks and uncertainties of our company include: our ability to obtain regulatory approval and ultimately commercialize our TCM formulae and/or products based on our TCM formulae; the outcome of our research study free from biases of parents or caregivers of patients because we relied on the data provided by them; difficulties enrolling patients in our research studies; any undesirable side effects caused by the TCM formulae candidates which could delay or prevent their regulatory approval or hinder commercialization; whether results of our earlier studies on personalized TCM formulae can be predictive of future research study results; failure of the research and development process; whether any TCM formulae candidates can be developed, manufactured, sold, marketed and distributed; the ability to successfully commercialize any future therapeutics; our ability to enhance our brand recognition; our ability to obtain and protect our intellectual property; and any adverse publicity associated with our TCM formulae candidates, ingredients or network marketing programs. We have based these forward-looking statements on assumptions and assessments made by our management in light of their experience and their perception of historical trends, current conditions, expected future developments, and other factors they believe to be appropriate. We have also relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources and makes no express or implied warranty as to the accuracy or completeness of any such information. Even if our results of operations, financial condition and liquidity, and the development of the industry in which we operate are consistent with the forward-looking statements contained in this presentation, they may not be indicative of results or developments in future periods. For a discussion of these and other risks and uncertainties, see our Annual Report on Form 20-F for the year ended June 30, 2021, which is available on the SEC’s website at www.sec.gov. All information in this press release is as of the date of the release, and we undertake no duty to update this information unless required by law. This caution is made under the safe harbor provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.
Contacts
Investor Relations
James Chung
ir@rgcbio.com
+852 2155 0823
An Unmet Need
Millions of children around the world are diagnosed with ADHD and/or ASD and most of the children diagnosed with ADHD had at least one other mental, emotional or behavioral disorder. In addition to going for behavior therapy, medications are also recommended for children who have ADHD and/or ASD. The two main types of medication for ADHD approved by the US Food and Drug Administration (“FDA”) are stimulants and non-stimulants, while the medication for ASD are usually ‘off-labels’ and are not used in a manner specified in the FDA’s approved packaging label or insert.
Such medications for ADHD and ASD usually come with side effects such as difficulty sleeping, loss of appetite, headaches, upset stomach and mood swings, amongst others.
To address the need for a natural and holistic treatment for such neurocognitive disorders, Regencell is in the midst of conducting further efficacy trials on its standardized TCM formulae to corroborate the effectiveness of the TCM formulae before it is made available to people around the world.
Regencell Standardized TCM Formulae
Regencell standardized TCM formulae are natural, orally administered liquid TCM formulae for the treatment of ADHD and ASD.
In conducting its second efficacy trial, the standardized TCM formulae were administered to children twice daily for a period of 3 months.
Regencell standardized TCM formulae were developed by our strategic partner TCM Practitioner based on his Sik-Kee Au TCM Brain Theory® and consists solely of natural ingredients without any synthetic components. The TCM formulae have been used for over 30 years to treat ADHD, ASD and many other neurological illnesses, disorders and diseases and have achieved positive clinical treatment results.
The TCM brain theory explains why a healthy brain is essential in restoring the body’s systems to normal. According to the TCM brain theory, the blockage of or reduced blood flow, and damage of the interconnecting central nervous system, endocrine system and blood circulatory system disrupt the production of hormones and transmission of neurotransmitters, such as melatonin, dopamine, and norepinephrine, leading to a defective encoding and decoding of functions, and resulting in deficient or abnormal social behaviors that are the hallmarks of ADHD and ASD.
Regencell Bioscience Holdings Limited
Regencell Bioscience Holdings Limited is an early-stage bioscience company that focuses on the research, development and commercialization of TCM for the treatment of neurocognitive disorders and degenerations, specifically ADHD and ASD, and infectious diseases affecting people’s immune system such as COVID-19. Regencell has completed its first research study using personalized TCM formulae for the treatment of ADHD and ASD in Hong Kong and aims to launch three liquid-based standardized TCM formulae candidates for mild, moderate and severe ADHD and ASD patients initially in Hong Kong and subsequently in other markets as it deems appropriate. The Company has formed a joint venture to offer COVID-19 related treatments to patients in ASEAN countries, India, Japan, Australia and New Zealand. For more information, please visit www.regencellbioscience.com and www.regencellasia.com.
Regencell Bioscience’s Standardized Formulae Are Shown to Reduce ADHD and ASD Symptoms in the Interim Results of its Second Efficacy Trial
- The Sik-Kee Au TCM Brain Theory® Assessment for ADHD and ASD (“SKATBT-A3”), which measures the effectiveness of the treatment on the patient’s overall body and neurodevelopmental conditions, showed a mean percentage improvement of 37% in the second efficacy trial based on the scoring system of SKATBT-A3.
- The first efficacy trial using personalized TCM formulae have shown a mean percentage improvement of 30% in ADHD symptoms and a mean percentage improvement of 37% in ASD symptoms, based on the scoring systems under the Vanderbilt ADHD Diagnostic Parent Rating Scale (“VADRS”) and the Autism Treatment Evaluation Checklist (“ATEC”), respectively, after 3 months of treatment.
- The ongoing second efficacy trial using standardized TCM formulae have shown a mean percentage improvement of 21% in ADHD symptoms and a mean percentage improvement of 22% in ASD symptoms, based on the scoring systems under VADRS and ATEC respectively, after 3 months of treatment.
September 12, 2022 09:15 AM Eastern Daylight Time
HONG KONG--(BUSINESS WIRE)--Regencell Bioscience Holdings Limited (Nasdaq: RGC) (“Regencell”) today announced its interim results from its second efficacy trial.
Common improvements include better sleep quality, reduced temper, better bowel movement and healthier complexion
Regencell conducted its second efficacy trial using standardized Traditional Chinese Medicine (“TCM”) formulae. “Our aim is to save and improve lives by making our standardized TCM formulae widely available to ADHD and ASD patients around the world. It is known that there is a significant economic impact and increased parental burden to families that care for children with ADHD and ASD. These positive data from the second efficacy trial bring us one step closer to improving the conditions and quality of life of patients and reducing the negative impact that ADHD and ASD have on patients and their families,” said Yat-Gai Au, founder and CEO of Regencell.
Second Efficacy Trial
The primary objective of the second efficacy trial is to evaluate and assess the effectiveness of Regencell’s standardized TCM formulae in reducing ADHD and ASD symptoms through a holistic approach during the course of a 3-month treatment.
The second efficacy trial is a non-blinded efficacy trial. Regencell started its recruitment program in August 2021 through direct invitations to members of a non-governmental organization that serves the ADHD and ASD community. Parents and guardians of children with ADHD and ASD were invited to apply for the program.
Patients between the ages of 6 and 12 at the time of the treatment and who were clinically diagnosed with ADHD and/or ASD were eligible to participate in the program. The program required all recruited patients to stop all their existing medications, attend weekly treatment sessions with their parents, and follow the TCM Practitioner’s dietary guidelines, during the 3-month treatment. After a rigorous screening process, Regencell selected 7 children (6 males and 1 female) to participate in the trial. 3 of the patients were diagnosed with ADHD and 4 of them with ASD. All participants resided in Hong Kong.
To measure the improvement of the children’s symptoms after taking the TCM Formulae in the trial, Regencell used
SKATBT-A3, an assessment developed by Regencell based on patients’ overall body and neurodevelopmental conditions;
VADRS, an ADHD assessment; and
ATEC, an ASD assessment.
SKATBT-A3 is a 48-item questionnaire designed and developed by Regencell to evaluate the effectiveness of a treatment in improving ADHD and ASD patients’ symptoms. SKATBT-A3 assesses a patient’s overall physical and neurodevelopmental conditions. SKATBT-A3 includes elements that are conditions of patients usually observed during TCM treatments such as: (i) speech/language/communication; (ii) patients’ sociability; (iii) sensory/cognitive awareness; and (iv) physical health and behavior.
For example, SKATBT-A3 examines:
the flexibility of the child’s tongue (e.g., prior to treatment, the child may be unable to extend his tongue and had to use his own fingers to pull and stretch his tongue);
the child’s willingness and proactiveness to participate in social gatherings and to learn (e.g., the child’s ability to focus and engage in school work); and
involuntary twitching.
The effectiveness of a treatment is demonstrated through the child’s post-treatment tongue control and flexibility, the ability to focus for a longer period of time and less frequent involuntary twitching. Regencell’s formulae aim to improve blood flow to the brain and remove blood clot over time, thereby alleviating symptoms such as inflexibility and twitching. The TCM Practitioner also believes that as the child's heart is strengthened, more blood is delivered to the brain, resulting in an improved ability to focus.
All patients orally consumed the standardized TCM formulae twice daily for 3 months. Improvements in patients’ symptoms were assessed weekly during treatment review sessions with the TCM Practitioner and the children’s parents.
Second Efficacy Trial Results
Change in SKATBT-A3 scores
After 3 months of treatment, SKATBT-A3 scores of all patients were lower, indicating fewer problems and improvements in symptoms. Percentage improvement of patients ranged between 14% and 56%, with a mean of 37%.
There were noticeable improvements in the patients’ overall health, ADHD symptoms and ASD symptoms. Common improvements include better sleep quality, reduced temper, better bowel movement and healthier complexion. The most notable improvement were demonstrated by two patients who gained the ability to control their tongues naturally without the aid of their own hands after the 3-month treatment. This is noteworthy because limited tongue function affects verbal communications and language abilities.
Change in VADRS scores
After 3 months of treatment, the VADRS scores of 5 patients were lower, indicating fewer problems and improvements in symptoms, while 1 patient’s score remained the same and 1 patient’s score was higher. Percentage improvements of patients ranged between -21% and 62%, with a mean of 21%.
Change in ATEC scores
After 3 months of treatment, the ATEC scores of all patients were lower, indicating fewer problems and improvements in symptoms. Percentage improvement of all patients ranged between 4% and 52%, with a mean of 22%.
Among the 4 subscales of ATEC, we saw the most significant drop in scores in the health/physical/behavior subscale. Constipation, sleeping problems, poor appetite, anxiety/fearfulness, and irritability are common issues among ADHD and ASD patients. Most of the patients suffered from these symptoms before the treatment but these symptoms improved after the treatment.
No adverse side effects
None of the patients experienced any adverse side effects after the 3-month treatment.
Regencell Bioscience Holdings Limited (RGC), a Hong Kong, China-based company, is focused on developing traditional Chinese medicine for the treatment of neurocognitive disorders and degeneration, specifically Attention Deficit Hyperactivity Disorder and Autism Spectrum Disorder.
RGC made its debut on the Nasdaq Capital Market on July 16, offering its shares at a price of $9.50 each. The stock, which opened at $12 that day, recorded a high of $59 on Aug.25, and that reflects a gain of 521% over the offer price. Although Regencell stock had given back most of its gains and trades around $28, it still commands a premium of over 190%.
In the company's first study using personalized traditional Chinese medicine formula in Hong Kong, there was a drop in assessment scores meaning that Attention Deficit Hyperactivity Disorder and Autism Spectrum Disorder symptoms were less severe for patients who participated in the study.
RGC has thus far hit a low of $6.00 and a high of $59.00. The stock closed Friday's trading at $33.79
According to stockanalysis.com/ipos/2021/, Regencell Bioscience ($RGC) is now the best-performing stock of all 2021 IPOs. RGC is still rated first as of September 11, 2022, having gained around 200 percent more than its $9.50 IPO price.
https://www.nasdaq.com/articles/top-biotech-ipos-of-2021-that-soared-as-much-as-500
27 Stocks To Watch Now That Are Recession-Resilient
When we enter a period of economic uncertainty, the phrase "recession-proof stocks" is tossed about, but really the only certainty is that recession-proof stocks do not exist.
On the other hand, recession-resistant companies are what a savvy investor searches for during the absence of a bull market, as we are now.
Historically, cyclical sectors such as financial and consumer directories have outperformed during bull markets. These equities are frequently susceptible to interest rates and economic growth, so they perform worse than others during a bear market or imminent recession.
Consumer preferences shift from optional and luxury purchases to essential home products and services during a recession as individuals are more concerned with their bottom line.
During uncertain periods such as this, the smart money rotates into recession-resistant or defensive sectors like Consumer Staples, Utilities and Health Care, all of which historically perform well during a recession.
Energy (+49.17%) is the sector with the most significant returns this year, owing to rising oil prices, supply-chain concerns, and demand for gas, energy equipment, and services while the war in Ukraine continues.
This bear market is different. Year-to-date, the returns for the following sectors are:
Consumer Staples: -0.62%
Utilities: +0.73%
Health Care: -8.1%
On the surface, these sectors could look like uncertain investments, bur peeking into them tells a different story and provides investment ideas.
Consumer Staples:
Beverages: +2.21%
Coca-Cola Co (NYSE:KO)
PepsiCo, Inc. (NASDAQ:PEP)
Constellation Brands, Inc (NYSE:STZ)
Food Products: +8.76%
Albertsons Companies Inc (NYSE:ACI)
SpartanNash Co (NASDAQ:SPTN)
Andersons Inc (NASDAQ:ANDE)
Tobacco: +9.27
Altria Group Inc (NYSE:MO)
British American Tobacco PLC (NYSE:BTI)
Vector Group Ltd. (NYSE:VGR)
Utilities:
Electric Utilities: -1.71%
NRG Energy Inc (NYSE:NRG)
DTE Energy Co (NYSE:DTE)
OGE Energy Corp. (NYSE:OGE)
Multi-Utilities: +9.05%
PG&E Corporation (NYSE:PCG)
Black Hills Corp (NYSE:BKH)
Exelon Corporation (NASDAQ:EXC)
Independent Power and Renewable Energy: -13.83%
Clearway Energy Inc Class A (NYSE: CWEN.A)
NextEra Energy Inc (NYSE:NEE)
First Solar, Inc. (NASDAQ:FSLR)
Health Care:
Providers & Services: +1.23%
National HealthCare Corporation (NYSE:NHC)
Davita Inc (NYSE:DVA)
Alignment Healthcare Inc (NASDAQ:ALHC)
Health Care Tech: +1.22%
Sophia Genetics SA (NASDAQ:SOPH)
Computer Programs & Systems, Inc. (NASDAQ:CPSI)
HealthStream, Inc. (NASDAQ:HSTM)
Pharmaceuticals: -0.55%
Viatris Inc (NASDAQ:VTRS)
Regencell Bioscience Holdings Ltd (NASDAQ:RGC)
Prestige Consumer Healthcare Inc (NYSE:PBH)
Benzinga Real-time News
This one stock has an ongoing growth potential despite pandemic and recession.
As countries across the world have in recent months lifted all, or remaining pandemic-related restrictions and lockdowns, and as the COVID crisis looks to cool down, many health experts are not completely convinced that the pandemic has yet subsided.
At the start of July, the chief of the World Health Organization, Tedros Adhanom Ghebreyesus noted that a number of countries were still reporting a continuing rise in daily active cases, which in the long run can put severe pressure on public health systems and frontline workers.
While it's not yet clear when we will mark the end of the pandemic, Regencell Bioscience has made encouraging advances throughout the pandemic to establish new formulas and treatments for infectious diseases.
Separately, the company has been working on philanthropic projects that could help thousands of children who are in severe financial distress or have been impacted by COVID.
According to Yat-Gai, "In April, I started looking to provide grants and financial support to more than 10,000 children that have been financially impacted by COVID, and others affected with ADHD and ASD. Until now, I have managed to help over 150 children. This is a project I'm personally handling through the Regencell Foundation."
Investment in the future, whether through monetary means or philanthropic efforts, is slowly helping to reshape the human understanding of bioscience and biotechnology, and the impact it has to make a difference in the broader society it serves.
https://www.ibtimes.com/regencell-ceo-shares-his-vision-insights-aims-change-way-patients-are-treated-3600337
Humanity leads to creative discovery
Yat-Gai Au founded Regencell Bioscience so that more people can benefit from natural and holistic treatments with a goal to provide everyone equal access to such treatment for many years to come.
Throughout the last few years, several people have largely contributed to the overall success of RGC. James Chung (Chief Operating Officer) and Dr. Chao (Chief Medical Officer), who joined Regencell in 2015 and 2019, respectively, were inspired by their personal experience with TCM and the major improvements they saw on ADHD and ASD patients.
"For our company to remain true to what we believe in, and continue to head in the right direction, it's critical to have the right set of people with a shared value of interests. Our team develops programs and leads scientific trials to ensure our services and products are effective, safe and useful," shares Yat-Gai.
The company has grown to be more than just a research and development facility for the treatment of neurocognitive disorders and degenerations. "It's paving the way for extraordinary improvements in TCM to be mainstream. Why should only a small group of people or communities have access to these groundbreaking treatments?"
In a recent clinical study - EARTH Trial - results showed that RGC-COV19TM is an effective formula for the alleviation and elimination of COVID-19 symptoms within 6 days. This in return helps to reduce the risks of hospitalizations and death. The rigorous trials have shown the effectiveness of TCM and alternative medicine in a hyper-modern and tech-driven world.
https://www.ibtimes.com/regencell-ceo-shares-his-vision-insights-aims-change-way-patients-are-treated-3600337
Regencell Bioscience Eliminating Mild to Moderate COVID-19 Symptoms within the 6-Day Treatment Period
Regencell began its investigational approach towards COVID-19 treatment when a friend of Regencell contracted COVID-19 in March 2020. To treat his friend, the TCM Practitioner used his proprietary TCM formula which he has been using over the past 30 years to treat various cold and flu patients, including during the 2003 SARS outbreak. The TCM Practitioner subsequently treated 9 voluntary COVID-19 patients in the United States using the proprietary TCM formula.
Study results showed that the treatment was effective. As Regencell has a mission to save lives, improve patients’ well-being and address unmet needs in the market, Regencell aims to make its natural and holistic treatment available to everyone in need.
From March 2020 to August 2021, Regencell set up protocols and procedures to conduct the EARTH efficacy trial in Malaysia and the United States.
RGC-COV19TM is designed to reduce COVID-19 symptoms such as fever, fatigue, cough, sore throat, runny nose, headache, nausea, chills, drowsiness, shortness of breath, persistent chest pain and muscle ache as the medicine works to (i) reduce and clear the mucus and phlegm from the upper respiratory system; (ii) dispel exterior viral pathogen via heavy sweats, urine and excrement; (iii) clear endogenous and liver heat; (iv) detox the liver; and (v) improve body circulation. By applying the TCM Practitioner’s “Sik-Kee Au TCM Brain Theory®”, RGC-COV19TM is also designed to remove blood clots from the brain and restore the patient's brain functions.
RGC-COV19TM (RGCA-CV01) is administered at 1 dose of RGCA-CV01-1Na (approximately 230ml) and 1 dose of RGCA-CV01-2Da (approximately 230ml) each time, with 1 dose of RGCA-CV01-1Na to be taken starting from the night of the first day of treatment and 1 dose of RGCA-CV01-2Da to be taken after lunch the next day, until symptoms are eliminated.
About RGC-COV19TM
RGC-COV19TM (RGCA-CV01) is an investigational, natural, orally administered liquid formula which aims to reduce and eliminate COVID-19 symptoms.
RGC-COV19TM is a natural formula designed by the TCM Practitioner according to the TCM Practitioner’s brain theory known as “Sik-Kee Au TCM Brain Theory®” and can be taken safely for two to three weeks. In conducting EARTH, the treatment was limited to 6 days in order to evaluate its efficacy in reducing and eliminating COVID-19 symptoms. The “TCM Practitioner” refers to our strategic TCM research partner, Sik-Kee Au, father of our founder and Chief Executive Officer.
According to the brain theory, brain functions depend on the oxygen level required for the brain to perform normal cognitive functions. For optimal brain performance, the heart needs to function normally to deliver sufficient oxygen to the brain. When the heart is weakened, the heart’s ability to deliver enough blood to circulate oxygen throughout the body is impaired. When this happens, brain functions are suppressed, resulting in a person experiencing fatigue, nausea, disorientation and reduced immune response.
RGC-COV19TM is designed to strengthen the heart’s functions. According to the brain theory, when the heart is strengthened, it increases blood flow and delivers more oxygen to the brain, resulting in reduced blood clots and restored brain functions. Regardless of the COVID-19 variant, the lungs and heart are where the coronavirus does much of its damage by setting off an inflammatory immune response that ravages infected and uninfected cells alike, leading to tissue scarring and oxygen deprivation which in turn suppress brain functions. RGC-COV19TM is formulated to generate more responsive cognitive functions which in turn stimulate the body’s own healing mechanism.
Original article:
https://www.businesswire.com/news/home/20220518005682/en/
Regencell’s COVID-19 formula
RGC-COV19TM is a natural formula designed by the TCM Practitioner according to the TCM Practitioner’s brain theory known as “Sik-Kee Au TCM Brain Theory®”.
According to the brain theory, brain functions depend on oxygen level required for the brain to perform normal cognitive functions. For optimal brain performance, the heart needs to function normally to deliver sufficient oxygen to the brain. When the heart is weakened, the heart’s ability to deliver enough blood to circulate oxygen throughout the body is impaired. When this happens, brain functions are suppressed, resulting in a person experiencing fatigue, nausea, disorientation and reduced immune response.
RGC-COV19TM is designed by the TCM Practitioner to strengthen the heart’s functions. According to the brain theory, when the heart is strengthened, it increases blood flow and delivers more oxygen to the brain, resulting in reduced blood clots and restored brain functions.
Regardless of the COVID-19 variant, the lungs and heart are where the coronavirus does much of its damage, and such infection can set off an inflammatory immune response that ravages infected and uninfected cells alike, leading to tissue scarring and oxygen deprivation which will in turn reduce optimal brain function. RGC-COV19TM is a natural formula designed by the TCM Practitioner according to the TCM Practitioner’s brain theory known as “Sik-Kee Au TCM Brain Theory®”.
RGC-COV19TM has been formulated to generate more responsive cognitive function which in turn, stimulates the body’s own healing mechanism to reduce COVID-19 symptoms. RGC’s formula and the body’s own response work together to:
• reduce and clear the mucus and phlegm from the upper respiratory system;
• dispel exterior viral pathogen via heavy sweats, urine and excrement;
• clear endogenous and liver heat;
• detox the liver, and
• improve circulation.
https://finance.yahoo.com/news/rgc-second-investigational-study-rgc-094600752.html
RGC: The results of the second investigational research of RGC-COV19TM in removing COVID-19 symptoms are consistent with those of the first study.
Founded in 2014, Hong Kong-based Regencell Bioscience (NASDAQ:RGC) is an early clinical stage bioscience company using Traditional Chinese Medicine (TCM) approach to develop standardized TCM formulas to holistically treat autism spectrum disorder (ASD) and attention deficit hyperactivity disorder (ADHD) in children, and infectious diseases such as the coronavirus disease (COVID-19).
In March 2020, Regencell’s strategic partner and TCM practitioner, Mr. Sik-Kee Au, modified his proprietary cold and flu TCM formula for use in COVID-19 patients. The TCM practitioner subsequently treated 9 voluntary COVID-19 patients in the United States and patients showed improvements after an average of five days. Based on these promising results, Regencell formed a joint venture with Honor Epic Enterprises Limited in September 2021 to conduct further tests and commercialize Regencell’s COVID-19 treatment in ASEAN countries.
EARTH Efficacy Trials (EARTH-A Trial and EARTH-B Trial)
From March 2020 to August 2021, Regencell set up protocols and procedures to conduct the Evaluation and Assessment of RGC-COV19TM TCM through a Holistic approach (EARTH) efficacy trial in Malaysia and the United States. The first EARTH efficacy trial (EARTH-A Trial), was a non-blinded trial of 37 subjects to study the efficacy of Regencell’s TCM formula for COVID-19 (RCG-COV19TM) over a six-day treatment period. In the EARTH-A Trial, of the 37 subjects, 36 patients (97.3%) had all mild-to-moderate symptoms eliminated (except for Sensory Dysfunction or occasional cough) within six days.
An additional efficacy trial (EARTH-B Trial) was conducted from January 30 to March 31, 2022 to corroborate EARTH-A’s results. The EARTH-B Trial followed the same design as the EARTH-A Trial, on a larger group of subjects. During the EARTH-B Trial, the Omicron variant accounted for 80% of COVID-19 cases in Malaysia. The EARTH-A Trial was conducted when Delta was the dominant variant.
51 subjects in Malaysia, aged 11 to 75, were enrolled for the EARTH-B Trial. They were of different races, ethnicity and socioeconomic background. All subjects showed onset of symptoms within five days of treatment initiation and laboratory-confirmed diagnosis of COVID-19 within three days to the start of treatment. Subjects with a confirmed diagnosis of COVID-19 but who were asymptomatic, were excluded from the study.
In the EARTH-B Trial, 50 subjects were fully-vaccinated and the one unvaccinated subject was 11 years old. Subjects who were vaccinated either received Pfizer-BioNTech, AstraZeneca or Sinovac-CoronaVac, the top three vaccines distributed in Malaysia.
Each subject was first given two doses of Regencell’s formula (two days of treatment) and were followed for a maximum of six days. Subjects took a reverse transcription-polymerase chain reaction test (RT-PCR test) for COVID-19 every two days. The COVID-19 treatment ended upon patients receiving a negative RT-PCR test or when their symptoms were gone (except for loss or reduce of sense of smell and/or taste (Sensory Dysfunction) or occasional cough), at the end of the six-day study period.
To assess the efficacy and time to symptom improvement/resolution, patients recorded their symptoms daily on a three-point scale ranging from mild to severe. Patients were asked to log specific symptoms such as fever (including hot flashes or chills), upper respiratory issues (cough, sore throat, runny nose), lower respiratory issues (shortness of breath, chest pain or pressure), muscle aches, nausea, abdominal discomfort, and drowsiness, and to identify any other symptoms they were experiencing. The largest number of different symptoms reported by the enrolled patients was 16 and the average number of different symptoms reported was approximately 7.
None of the trial subjects was hospitalized and there was no death. The efficacy of RGC-COV19TM was not affected by timing of symptom onset or underlying risk factor. Results were consistent across all ages, gender, races and ethnicity demographic among subjects.
Symptoms elimination
Of the 51 subjects, 48 patients (94.1%) had all mild-to-moderate symptoms eliminated (except for Sensory Dysfunction or occasional cough) within six days. 46 of 51 patients (90.2%) reported elimination of one or more symptoms after one day of treatment, which is considerably better than the 83.8% response reported in the EARTH-A Trial. On average, subject reported elimination of all symptoms (except Sensory Dysfunction and occasional cough) 3.6 days after starting treatment.
Clearing the virus - negative RT-PCR test
Subjects took RT-PCR tests every other day during the study. In Malaysia, the threshold for ‘not detected’ is above 40, meaning a CT value of 40 or lesser means a person is COVID-19 positive while a CT value of more than 40 means a person tested negative for COVID-19. Of the 51 subjects in the study, 23.5% (n=12) tested negative for COVID-19 by the end of the study. The remaining 36 subjects who reported all symptoms eliminated (excluding Sensory Dysfunction and/or occasional cough) before the end of the study (averaging recovery period of 3.4 days) were not further tested for COVID-19.
Sensory dysfunction and breathing difficulty
Sensory dysfunction (loss or reduce of sense of smell or taste) appears to linger beyond the six-day study period for many subjects. Prior to receiving treatment, 17 of 51 subjects reported sensory dysfunction. 11 of the subjects regained their sense of smell and/or taste at the end of the six-day study, while the other six reported improvement.
Prior to treatment, 15 patients reported experiencing a combination of dyspnea (difficulty in breathing) and persistent chest pain. 10 of these 15 patients no longer experienced difficulty in breathing and/or persistent chest pain after 1 full dose of RGC-COV19TM.
https://finance.yahoo.com/news/rgc-second-investigational-study-rgc-094600752.html
Regencell Bioscience's Path to Registration and Commercialization
Regencell Bioscience has a four-year timeframe to commercialize its standardized formulations and gain proprietary Chinese medicine (pCm) registration in Hong Kong. The Company has a number of tasks ahead:
• Completing its second clinical trial for ASD/ADHD and COVID, and evaluating results.
• Conducting additional clinical trials to support its proprietary formulae in ASD/ADHD and other applications.
• Obtaining patents and other forms of IP protection in Hong Kong and other markets.
• Establishing manufacturing capability and supply chain that will meet registration requirements.
• Assembling and filing documentation for pCm approval.
• Build out its marketing and distribution strategy and infrastructure.
We believe that an emphasis on conducting well-designed clinical trials that measure outcomes based on well-established assessment instruments, will provide Regencell Bioscience with a competitive advantage in terms of expertise and credibility in an industry that is moving towards higher standards for efficacy, safety and quality. While there is still much work to do, in our view, Regencell Bioscience is taking a thoughtful, systematic approach to developing its TCM formulae.
https://finance.yahoo.com/news/rgc-second-investigational-study-rgc-094600752.html
As investors are on the lookout for cheap biotech stocks which may have great potential upside, the slow and steady performance of some companies may present viable financial returns in the coming years.
One company of interest in this specific category is Regencell Bioscience Holdings Limited (NASDAQ:RGC), an early-stage bioscience company focusing on the research, development, and commercialization of Traditional Chinese Medicine ("TCM").
Regencell Bioscience focuses on the research and development of neurocognitive disorders and degeneration, more specifically in ADHD, ASD, and infectious diseases such as COVID-19.
The bioscience company went public with around 2.6 million ordinary shares at $9.50 per share, raising approximately $22.7 million.
RGC has kept investors interested and has received media attention for all the right reasons; the most recent - the company's chairman and CEO, Yat-Gai Au used over $5.9 million of his personal funds to purchase ordinary RGC shares through the open market to support the growth and potential of the company.
Sizable stock purchases by insider investors, with the CEO being an exception, have helped the company sidestep short sellers and hedge fund managers that have been taking advantage of small-time investors. Currently, the company has just over 2.6 million shares on the market available for trade.
The amount of bearish bets against Hong Kong stocks has risen to levels that could trigger a surge in share prices as traders rush to close out their positions, according to quantitative analysts at Morgan Stanley.
Hedge funds and other short sellers say they’re either covering bearish wagers or planning to do so, strategist Gilbert Wong wrote in emailed comments Wednesday. Short-selling activity was running at just under 20% of total turnover on the city’s stock market this week, a level not seen since May, calculations by Bloomberg based on exchange data showed.
“We believe the risk of short squeeze in China and Hong Kong equities is rising,” Wong said. “Stay alert.”
Betting against Hong Kong’s stock market has proven to be a profitable trade this year, with the Hang Seng Index down over 20% at its low point in March on fears of an economic slowdown and regulatory overreach. Global investors are so underweight Chinese assets that bearish equity bets were considered one of the most-crowded trades in Bank of America Corp.’s investor survey earlier this year.
But it can also be a perilous one -- in the middle of that month, a coordinated pledge from China’s top regulators to address investor concerns triggered a two-day, 17% surge in the benchmark.
Theories on what could lead to a rebound this time range from beaten-down valuations, low positioning after August redemptions and signs of increased stimulus from Beijing. The Hang Seng climbed as much as 3.3% Thursday after China announced additional measures to boost infrastructure spending. The Hang Seng Tech index rallied 5.3%, with Alibaba Group Holding Ltd. surging 8.1%.
While short-covering flows may have little to do with fundamental changes in the outlook for Chinese equities, some investors are behaving like the best of the bearish-China trade is behind them.
“They believe further market downside is limited from current levels because positioning is low and very defensive,” said Wong.
One ticker that is Hong Kong based, that some traders have looked at to also have short squeeze potential is Regencell Bioscience Ltd.
The short volume ratio has a similar pattern to that of GameStop with both averaging over 40% in the past year. In fact, Regencell has sometimes been more heavily shorted than GameStop, with occasional days close to 90% shorted.
Although Regencell and GameStop stocks’ short volume profiles might be considered to be similar, not as much is known about Regencell. As of May 16, the company’s founder and CEO held 10,539,159 ordinary shares, representing 81% of the total number of issued and outstanding ordinary shares in Regencell.
Regencell’s total cumulative short volume, as reported by a third-party data analytics provider, is over 19 million shares, while the total outstanding shares less CEO and Chairman’s shares is only approximately 2.4 million, yet Regencell is still trading over 289% its IPO price. Its total reported short volume to outstanding shares ratio (excluding CEO and Chairman’s shares ratio) is almost double of GameStop, being approximately 8 times whereas GameStop is slightly over 4 times. GameStop is currently trading 50x over its historical low of $2.52. Where are all the extra shares coming from?
As witnessed on Reddit and other social media and forums, especially during the GameStop short squeeze, retail shareholders came together, driven by the community’s effort to punish market participants who make a living shorting and distorting public companies, causing them to stumble and fall.
https://www.bloomberg.com/news/articles/2022-08-25/hong-kong-short-squeeze-is-rising-risk-for-morgan-stanley-quants
https://www.benzinga.com/general/biotech/22/06/27567868/traders-may-keep-hunting-for-another-squeezable-stock-like-gamestop-how-does-this-tickers-short-i
When the economy moves toward a recession, investors usually rotate into sectors that are less sensitive to the economic cycle.
Sector Rotation And 9 Stocks To Watch During A Recession
Coca-Cola Co $KO
Albertsons Companies Inc $ACI
Altria Group Inc $MO
NRG Energy Inc $NRG
PG&E Corporation $PCG
Clearway Energy Inc $CWEN
National HealthCare Corporation $NHC
HealthStream, Inc. $HSTM
Regencell Bioscience Holdings Ltd $RGC
The commonly accepted definition of a recession is a brief period of decreased commerce and manufacturing activity that is typically indicated by a dip in GDP over two consecutive quarters. The GDP shrank at an annual pace of 1.4 percent, down from 6.9 percent in the fourth quarter of 2021, according to the Bureau of Economic Analysis.
Although the macro picture is at best gloomy, it is important to comprehend the larger market dynamics that show where money is moving, such as the economic cycle and sector rotation.
A recession is a well-known natural component of an expanding economy and a stage of the economic cycle. The economy's transition from a growth stage to a recession and back to growth is known as the economic cycle. Since it directly affects stock prices in relation to corporate profitability, this is perhaps the factor with the most impact on the overall markets.
The numerous market sectors, each of which is responsive to a distinct stage of the cycle, are what link the stock market to the economic cycle.
Are you still perplexed? This ought should make it simple.
When the economy is expanding, some industries (such as real estate, consumer brands, and consumer goods) will perform better than others (Healthcare, Food, Consumer Staples, Utilities)
This is referred to as sector rotation or the movement of capital by investors throughout the course of the economic cycle.
Investors typically shift into less cycle-sensitive sectors, such consumer staples and utilities, when the economy is headed for a recession. These sectors are referred to as defensive sectors because they can provide a certain level of protection during a recession.
https://www.benzinga.com/general/entertainment/22/05/27291606/sector-rotation-and-9-stocks-to-watch-during-a-recession?SNAPI
3 Reasons Why Companies or CEO Buy Back Stocks
1) Stock Buybacks Preserve the Stock Price
Shareholders usually want a steady stream of increasing dividends from the company. And one of the goals of company executives is to maximize shareholder wealth. However, company executives must balance appeasing shareholders with staying nimble if the economy dips into a recession.
Why do some favor buybacks over dividends? If the economy slows or falls into recession, a company might be forced to cut its dividends to preserve cash. The result would undoubtedly lead to a sell-off in the stock. However, if the bank decided to buy back fewer shares, achieving the same preservation of capital as a dividend cut, the stock price would likely take less of a hit.
Committing to dividend payouts with steady increases will undoubtedly drive a company's stock higher, but the dividend strategy can be a double-edged sword. In the event of a recession, share buybacks can be decreased more easily than dividends, with a far less negative impact on the stock price.
2) The Stock Is Undervalued
Another major motive for businesses to do buybacks is that they genuinely feel as if their shares are undervalued. Undervaluation occurs for several reasons, often due to investors' inability to see past a business' short-term performance, sensationalist news items, or a general bearish sentiment. For example, a wave of stock buybacks swept the United States in 2010 and 2011 when the economy was recovering from the Great Recession.
3) Many companies began making optimistic forecasts for the coming years, but company stock prices still reflected the economic doldrums that plagued them in years prior. These companies invested in themselves by repurchasing shares, hoping to capitalize when share prices finally began to reflect new, improved economic realities.
Stock Buybacks Consolidate Ownership
Companies issue shares to raise funding for projects. Several types of shares can be issued, but the two most popular are common and preferred shares. Common—also called ordinary—shares come with voting privileges and ownership. Preferred shares differ in that dividends are paid out to the shareholders before common shareholders, and these shareholders are higher in the queue for payout during a bankruptcy proceeding.
A company with thousands of stocks issued essentially has thousands of voting owners. A buyback reduces the number of owners, voters, and claims to capital.
If a stock is dramatically undervalued, the issuing company can repurchase some of its shares at this reduced price and then re-issue them once the market has corrected, thereby increasing its equity capital without issuing any additional shares. However, investors may be reluctant to purchase the re-issued shares if they feel they've been burned by a company this way.
RGC Ownership Breakdown
To get a sense of who is truly in control of Regencell Bioscience Holdings Limited (NASDAQ:RGC), it is important to understand the ownership structure of the business. With 81% stake, individual insiders possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises.
Data shows that insiders recently bought shares in the company and they were rewarded after market cap rose US$64m last week.
Let's take a closer look to see what the different types of shareholders can tell us about Regencell Bioscience Holdings.
What Does The Lack Of Institutional Ownership Tell Us About Regencell Bioscience Holdings?
Small companies that are not very actively traded often lack institutional investors, but it's less common to see large companies without them.
There are multiple explanations for why institutions don't own a stock. The most common is that the company is too small relative to funds under management, so the institution does not bother to look closely at the company.
Hedge funds don't have many shares in Regencell Bioscience Holdings. With a 81% stake, CEO Yat-Gai Au is the largest shareholder. With such a huge stake, we infer that they have significant control of the future of the company. It's usually considered a good sign when insiders own a significant number of shares in the company, and in this case, we're glad to see a company insider with such skin in the game. In comparison, the second and third largest shareholders hold about 7.6% and 0.1% of the stock.
Insider Ownership Of Regencell Bioscience Holdings
While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. Insider ownership is positive when it signals leadership are thinking like the true owners of the company.
Most recent data indicates that insiders own the majority of Regencell Bioscience Holdings Limited. This means they can collectively make decisions for the company. So they have a US$430m stake in this US$531m business. Most would be pleased to see the board is investing alongside them.
General Public Ownership
With a 11% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Regencell Bioscience Holdings. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.
Private Equity Ownership
With a stake of 7.6%, private equity firms could influence the Regencell Bioscience Holdings board. Some might like this, because private equity are sometimes activists who hold management accountable. But other times, private equity is selling out, having taking the company public.
https://www.investopedia.com/ask/answers/042015/why-would-company-buyback-its-own-shares.asp
https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-rgc/regencell-bioscience-holdings/news/regencell-bioscience-holdings-limited-nasdaqrgc-insiders-hav?utm_medium=article&utm_source=robinhood
https://simplywall.st/stocks/us/pharmaceuticals-biotech/nasdaq-rgc/regencell-bioscience-holdings#information
Short Squeeze Potential in This Stock
Stocks with high short interest are often very volatile and are well known for making explosive upside moves (known as a short squeeze). Stock traders will often flock to such stocks for no reason other than the fact that they have a high short interest and the price can potentially move up very quickly as traders with open short positions move to cover.
If two companies both have 25% short float, but one has 10M unshorted shares floating and the other has 200M unshorted shares floating, the first one is clearly more susceptible to a short squeeze. The effect of this change is that the updated model will favor low-float companies over others, all other things being equal.
"The possibility of a short squeeze is one reason some analysts look at a high amount of short interest as a bullish indicator. Short Interest is the fuel, performance is the fuse, says ShortSqueeze.com"
- USA Today
So this one stock behaves like $GME (Gamestop Corporation), does it also have a potential short squeeze?
Both $RGC (Regencell Bioscience) and $GME's short volume ratios, which have averaged over 40% over the past year, follow a similar pattern. In fact, there have been days when Regencell's shares have been shorted about 90% more than GameStop. It should be noted that, in comparison to GME, RGC has a very low float.
Little shares of $RGC are also available for shorting, but it appears that more shares have been sold short than are currently available.
Regencell’s total cumulative short volume, as reported by a third-party data analytics provider, is over 19 million shares, while the total outstanding shares less CEO and Chairman’s shares is only approximately 2.4 million, yet Regencell is still trading over 289% its IPO price. Its total reported short volume to outstanding shares ratio (excluding CEO and Chairman’s shares ratio) is almost double of GameStop, being approximately 8 times whereas GameStop is slightly over 4 times. GameStop is currently trading 50x over its historical low of $2.52. Where are all the extra shares coming from?
https://www.benzinga.com/general/biotech/22/06/27567868/traders-may-keep-hunting-for-another-squeezable-stock-like-gamestop-how-does-this-tickers-short-i
https://fintel.io/shortSqueeze
HighShortInterest.com
This stock has an ongoing growth potential despite pandemic and recession.
As countries across the world have in recent months lifted all, or remaining pandemic-related restrictions and lockdowns, and as the COVID crisis looks to cool down, many health experts are not completely convinced that the pandemic has yet subsided.
At the start of July, the chief of the World Health Organization, Tedros Adhanom Ghebreyesus noted that a number of countries were still reporting a continuing rise in daily active cases, which in the long run can put severe pressure on public health systems and frontline workers.
While it's not yet clear when we will mark the end of the pandemic, Regencell Bioscience has made encouraging advances throughout the pandemic to establish new formulas and treatments for infectious diseases.
Separately, the company has been working on philanthropic projects that could help thousands of children who are in severe financial distress or have been impacted by COVID.
According to Yat-Gai, "In April, I started looking to provide grants and financial support to more than 10,000 children that have been financially impacted by COVID, and others affected with ADHD and ASD. Until now, I have managed to help over 150 children. This is a project I'm personally handling through the Regencell Foundation."
Investment in the future, whether through monetary means or philanthropic efforts, is slowly helping to reshape the human understanding of bioscience and biotechnology, and the impact it has to make a difference in the broader society it serves.
https://www.ibtimes.com/regencell-ceo-shares-his-vision-insights-aims-change-way-patients-are-treated-3600337
What’s Behind the Rally of GCT Stock on Friday?
It looks like meme stock traders have latched onto GCT shares as one of their big investments. This has it joining other popular Hong Kong meme stocks, such as Regencell Bioscience, $RGC, AMTD Digital $HKD, AMTD IDEA, $AMTD and Magic Empire Global $MEGL.
GCT joins the ranks of other Hong Kong meme stocks like RGC, HKD, MEGL & AMTD. What's the hype?
GigaCloud Technology (GCT) is getting a major boost on Friday following its initial public offering (IPO) Thursday.
That's due to meme stock investors taking notice of the fintech company.
This has shares climbing over 100% as heavy trading takes place.
GigaCloud Technology (NASDAQ:GCT) stock is continuing to rally on Friday after the Hong Kong-based fintech company launched its IPO yesterday.
That IPO saw the company list shares for $12.25 each and it included 2.94 million of them. That has the company expecting gross proceeds of $36 million from its IPO before deducting underwriter discounts.
GigaCloud Technology holding an IPO in the U.S. is somewhat surprising considering the delisting fears Chinese companies have faced. GCT isn’t worried about that though as it says it’s willing to switch auditors if need be to keep its U.S. listing.
$RGC was the IPO top performer for the year of 2021 with an increase of 190% (if one bought the stock on IPO and still holding).
That resulted in heavy trading yesterday as investors pumped up shares of GCT stock with its IPO. This saw shares rise as much as 62% yesterday and that momentum isn’t stopping today. As of this writing, more than 8 million shares of GCT stock have changed hands. While we don’t have a good daily average to compare that to, there’s no denying it’s a lot of momentum for the stock.
GCT stock is up 145.1% as of Friday morning.
https://investorplace.com/2022/08/gct-stock-alert-what-is-going-on-with-gigacloud-technology-today/
Identifying biotech stock to invest in
Identifying the best biotech stocks to buy or the best biotechnology stocks to invest in isn’t always as easy as picking a four-letter stock symbol. Clinical trials are not always positive, and in many cases, a negative result can produce a considerable downfall in a biotechnology company. In turn, the underlying biotech stock could fall as well. Regulatory concerns from agencies like the Food And Drug Administration keep tight constraints on biotechnology companies. It is crucial for investors to make sure they are fully aware of what the FDA guidelines are so that these investors can make good investments.
Generally speaking, biotech stocks are a mainstay among growth investors. The rewards can be jaw-dropping – prices on biotechnology shares can double or more overnight – but with this reward also comes a level of risk that is just as high. It’s not unusual for these stocks to be cut in half or more if drug-trial data disappoints or a drug application is rejected by the FDA.
In the end, it’s vital for anyone looking to invest in biotech stocks or those looking to learn how to trade biotechnology stocks to pay attention to everything going on within the industry. Though many of these biotech stocks can see strong momentum trading, it’s also important to note that depending on the catalyst for the move, it can last for a short period or months on end.
Some examples of biotech stocks in the US stock market that you can look up:
1) Jasper: A new stem-cell conditioning agent
Jasper Therapeutics $JSPR is a clinical-stage biotech company that went public last month through a deal with the special purpose acquisition company Amplitude Healthcare Acquisition (NASDAQ: AMHC). The biotech's shares have gained an eye-popping 99.7% in just the past week, thanks to coverage from the investment bank Oppenheimer.
Long story short, this unique therapy may be able to overcome the limitations associated with the current regimen of toxic agents used for conditioning before treatment with these life-saving therapies. JSP191, in effect, could become an integral part of the standard of care for patients undergoing these cutting-edge procedures for a wide range of blood disorders and rare diseases.
2) NRx Pharmaceuticals: A potential breakthrough in the treatment of severe COVID cases
NRx Pharmaceuticals' $NRXP value proposition centers on its severe COVID treatment called Zyesami (aviptadil). The company and its shareholders are hoping that the FDA will greenlight the drug soon in light of its impressive performance in the clinic.
What's the upside potential? COVID-19 is expected to morph into an endemic respiratory illness. That means there will be a consistent need for novel coronavirus drugs -- especially for hospitalized patients with severe forms of the disease -- for a long time to come. Now, NRx still has a lot of work to do to get the drug on the market.
One more stock that I like more than these TWO is Regencell Bioscience $RGC.
Regencell Bioscience is an early-clinical bioscience company which focuses on the research and development of Traditional Chinese Medicine (TCM) to holistically treat neurocognitive disorders and also infectious diseases which affects the immune system such as COVID-19.
The company have been researching and conducting studies to address the fundamental causes of ADHD and ASD disorders. The goal is to improve the lives of ADHD and ASD patients, their families and caregivers and become a market leader for the treatment of these disorders. $rgc aim to achieve improvements in both symptoms and overall health of patients as compared to currently available medications in the market. They are passionate about transforming the lives of patients, their families and caregivers and help them feel their best physically, mentally and emotionally!
RGC’s steady share price ascension in recent weeks may be a sign of greater things to come as its moves towards commercialization, we are encouraged by its thoughtful, systematic approach to developing its therapies, and communicating its progress to shareholders.
https://www.nasdaq.com/articles/2-biotech-stocks-poised-for-jaw-dropping-growth-2021-10-17
Biotech stocks could be a big opportunity for exponential gains
Biotech stocks are always in the spotlight as the sector itself has been the source of significant disruptions for the global healthcare system. Long sought after by both high-risk investors and low-risk investors, biotechnology stocks offer something that other stocks do not: highly speculative opportunities. Because many of these companies are involved in early phase trials of things like novel drugs, a positive result at any phase can end up producing a favorable reaction in the stocks market. And for biotech stock investors, this could be a big opportunity for exponential gains.
Regencell Bioscience, an early-clinical bioscience company which focuses on the research and development of Traditional Chinese Medicine (TCM) to holistically treat neurocognitive disorders and also infectious diseases which affects the immune system such as COVID-19.
The company have been researching and conducting studies to address the fundamental causes of ADHD and ASD disorders. The goal is to improve the lives of ADHD and ASD patients, their families and caregivers and become a market leader for the treatment of these disorders. $rgc aim to achieve improvements in both symptoms and overall health of patients as compared to currently available medications in the market. They are passionate about transforming the lives of patients, their families and caregivers and help them feel their best physically, mentally and emotionally!
Nasdaq Listing
On July 16, 2021, the ordinary shares began trading on the Nasdaq Capital Market. The company raised net proceeds of approximately $19.3 million from the initial public offering of 2,300,000 ordinary shares at a public offering price of $9.50 per share. They plan to use these proceeds to fund for the second research study (currently ongoing), TCM formulae and products, staff salaries, product and intellectual property registrations, facilities rental, renovations and equipment, for working capital and other general corporate purposes
Stocks worth to put in your watchlist
Sector rebalancing and nine stocks to keep an eye on amid a downturn.
The commonly accepted definition of a recession is a brief period of decreased commerce and manufacturing activity that is typically indicated by a dip in GDP over two consecutive quarters. The GDP shrank at an annual pace of 1.4 percent, down from 6.9 percent in the fourth quarter of 2021, according to the Bureau of Economic Analysis.
Although the macro picture is at best gloomy, it is important to comprehend the larger market dynamics that show where money is moving, such as the economic cycle and sector rotation.
A recession is a well-known natural component of an expanding economy and a stage of the economic cycle. The economy's transition from a growth stage to a recession and back to growth is known as the economic cycle. Since it directly affects stock prices in relation to corporate profitability, this is perhaps the factor with the most impact on the overall markets.
The numerous market sectors, each of which is responsive to a distinct stage of the cycle, are what link the stock market to the economic cycle.
Are you still perplexed? This ought should make it simple.
When the economy is expanding, some industries (such as real estate, consumer brands, and consumer goods) will perform better than others (Healthcare, Food, Consumer Staples, Utilities)
This is referred to as sector rotation or the movement of capital by investors throughout the course of the economic cycle.
Investors typically shift into less cycle-sensitive sectors, such consumer staples and utilities, when the economy is headed for a recession. These sectors are referred to as defensive sectors because they can provide a certain level of protection during a recession.
Some of those defensive names include:
1) Coca-Cola Co
2) Albertsons Companies Inc
3) Altria Group Inc
4) NRG Energy Inc
5) PG&E Corporation
6) Clearway Energy Inc
7) National HealthCare Corporation
8) HealthStream, Inc
9) Regencell Bioscience Holdings Ltd
On the other hand, after a recession ends, investors switch to stocks with a high cycle sensitivity, including industrials and consumer cyclicals.
https://www.benzinga.com/general/entertainment/22/05/27291606/sector-rotation-and-9-stocks-to-watch-during-a-recession?SNAPI
Why This Biotech Stock Deserved A Chance?
RGC launched a follow-up research for their experimental liquid formula RGC-COV19TM in the treatment of COVID-19 symptoms on May 18, 2022. (EARTH-B Trial). The second study expanded on the encouraging findings from the initial EARTH experiment (EARTH-A Trial), which was carried out in 2020–2021. In the two studies, 95.5 percent of the participants (n=81) reported complete symptom relief six days after therapy, with the exception of occasional coughing and loss or reduction in sensation of taste and/or smell (sensory dysfunction).
RGC anticipates publishing data from its second clinical research of its standardised TCM formula for the treatment of ASD and ADHD in the coming months.
In order to set standards for therapy, dosing, adverse effects (AEs), and assessing patient response in a methodical and reproducible manner, Regencell Bioscience's initial clinical study was created. Seven adolescents with clinically confirmed ASD or ADHD, ranging in age from five to eleven, participated in the 2018–2019 study. Subjects got a personalised TCM formula for up to three months after stopping all current treatments and medications. Parental interviews and four validated assessment tools, such as the Autism Treatment Evaluation Checklist (ATEC), Gilliam Autism Rating Scale (GARS), Vanderbilt ADHD Diagnostic Parent Rating Scale (VADRS), and Pelham (SNAP)-IV 26-item Parent Rating Scale, were used to gauge the responses of the patients (SNAP-IV-26). During the course of treatment, all seven patients showed a reduction in symptoms on all four scales.
The second clinical trial assesses how three standardized TCM formula mixes (for mild, moderate, and severe impairment) respond to children in the same age group. Weekly practitioner meetings, twice daily medication for three to twelve months, and monthly assessments are all part of the study's design. The outcomes will be used to submit a proprietary Chinese medicine (pCm) registration application in Hong Kong, making the product available for purchase both over the counter and in other clinic.
To support its findings, Regencell is concentrating on its clinical research. Through these initiatives, the infrastructure for manufacturing and the supply chain that is needed to obtain pCm registration will be built. The commercialization of Regencell Bioscience's standardised formulations and pCm registration in Hong Kong are both subject to a four-year timeline. A lot of tasks lie ahead for the company:
•Finishing its second clinical trial and reviewing outcomes.
• Running more clinical studies to support the use of its patented formulas for ASD/ADHD and other uses.
• Getting IP protection in Hong Kong and other markets through the acquisition of patents and other types of IP.
• Setting up a manufacturing infrastructure and supply chain that complies with registration criteria.
• Compiling and filing paperwork for pCm approval.
• Develop the infrastructure and marketing and distribution plan.
We are encouraged by RGC's thoughtful, methodical approach to developing its therapies and communicating its progress to shareholders, which we believe may be a sign of greater things to come as it moves towards commercialization. RGC's steady share price ascent in recent weeks.
• Completing its second clinical trial and evaluating results.
• Conducting additional clinical trials to support its proprietary formulae in ASD/ADHD and other applications.
• Obtaining patents and other forms of IP protection in Hong Kong and other markets.
• Establishing manufacturing capability and supply chain that will meet registration requirements.
• Assembling and filing documentation for pCm approval.
• Build out its marketing and distribution strategy and infrastructure.
•
RGC’s steady share price ascension in recent weeks may be a sign of greater things to come as its moves towards commercialization, we are encouraged by its thoughtful, systematic approach to developing its therapies, and communicating its progress to shareholders.
https://finance.yahoo.com/news/rgc-ceo-figuratively-putting-money-092700965.html
Gains are made despite a reduction in the number of US biopharma IPOs in 2022.
While there are significantly fewer initial public offerings in 2022 than in 2021 and 2020, the caution expressed by biopharma companies and investors seems to be paying off, with this year showing the best average performance of the three years. An analysis of only 12 IPOs conducted on U.S. exchanges this year indicates that since their debuts, they are up an average of 7%. In contrast, the 90 IPOs completed in 2021 that were part of the analysis are down an average of 42%, while the 74 from 2020 are down by 34.6% on average.
Enthusiasm for the industry skyrocketed in 2020 following the World Health Organization declaring COVID-19 a pandemic. IPOs hit record levels over the next 21 months and huge sums of money were raised for research. Companies seized the moment to collect funds through a wide-open window, enabling some to enter the public arena before their time and without the knowledge of future market influences, such as rising inflation, a mutating SARS-CoV-2 virus, and political upheaval.
In 2022, investors have pulled back and fewer companies have sought a public listing. The year seems to have served as a correction for the earlier zeal. Even follow-on offerings are at their lowest levels, having raised only $8.4 billion through the second week of August, compared with about $20 billion during the same period in 2021.
A total of 23 IPOs so far in 2022 have raised $3.7 billion, compared with $16.7 billion through the end of July in 2021 and $12.5 billion during the same timeframe in 2020. The volume of IPOs in each of the two prior years was 98 and 51, respectively, in those seven months.
Cincor up 125%
The best performer among 2022 IPOs analyzed is Cincinnati-based Cincor Pharma Inc., which raised $212.6 million in a January IPO. Shares (NASDAQ:CINC) were priced then at $16 a piece and have since climbed to a $35.94 close on Aug. 15, representing a rise of about 125%.
Top 2021 performers
The top performer among 2021 IPOs is Hong Kong-based Regencell Bioscience Holdings Ltd., which went public in July of that year, raising $24.9 million. Its stock (NASDAQ:RGN) has risen 232% since then. The company focuses on traditional Chinese medicine for neurocognitive disorders and degeneration.
As an early-stage bioscience company, Regencell Bioscience (NASDAQ: RGC) is a Hong Kong-based company focused on the research, development, and commercialization of Traditional Chinese Medicine (TCM) for the treatment of neurocognitive disorders and degenerations.
The company has grown to be more than just a research and development facility for the treatment of neurocognitive disorders and degenerations. "It's paving the way for extraordinary improvements in TCM to be mainstream. Why should only a small group of people or communities have access to these groundbreaking treatments?"
In a recent clinical study - EARTH Trial - results showed that RGC-COV19TM is an effective formula for the alleviation and elimination of COVID-19 symptoms within 6 days. This in return helps to reduce the risks of hospitalizations and death. The rigorous trials have shown the effectiveness of TCM and alternative medicine in a hyper-modern and tech-driven world.
San Diego-based Prometheus Biosciences Inc. (NASDAQ:RXDX) is up 156% and Cambridge, Mass.-based Verve Therapeutics Inc. (NASDAQ:VERV) is up 99%.
Prometheus is focused on therapeutics and companion diagnostics for immune-mediated diseases. It expects phase II data in the fourth quarter for PRA-023 for ulcerative colitis and for Crohn’s disease. Verve’s lead candidate is a gene editing medicine, Verve-101, for heterozygous familial hypercholesterolemia. Regulatory clearances for a clinical trial application in the U.K. and an investigational new drug application in the U.S. are expected later this year.
https://www.bioworld.com/articles/521750-downsized-crop-of-2022-us-biopharma-ipos-make-gains-amid-correction
Low-float stocks with Hong Kong-based companies are popular right now.
After going public on July 15 at a price of $7.80, $HKD reached a high of $2,555.30. However, it had a severe accident on August 1.
$MEGL experienced a run from its IPO price of $4 to $249.94 after $HKD. Since then, it has decreased to $13.
On Friday, $GCT, which had an IPO price of $12.25 on August 18, ended at $48.01 and appeared to be the play.
You may be thinking, "What else?"
Regencell Bioscience ($RGC) might be a stock to keep an eye on. According to stockanalysis.com/ipos/2021/, $RGC is the best-performing stock among all IPOs in 2021. RGC was ranked first up until August 1, 2022, with a return of 237% above its IPO price of $9.50.
$RGC fits the current trend by having a low float and being situated in Hong Kong. According to a June 2022 report, $RGC has approximately 19 million shares totaled in cumulative short volume. $RGC has performed well despite the attacks from short sellers that have plagued the company since its launch. Due to the founder and CEO's recurrent purchases of RGC common shares on the open market, $RGC has a low float and around 2.6 million marketable ordinary shares.
$RGC is closely owned by its CEO, who owns more than 81% of the business, as was already mentioned. Since $RGC's IPO, he has spent $5.9 million of his own money to buy company shares on the open market.
The corporation has avoided being taken advantage of by short sellers and hedge fund managers who have been buying large amounts of stock, with the CEO being the exception. Just over 2.6 million of the company's shares are now traded on the market.