* WHY BUY * longer term potential

[NWriter]

Stocks fall after Walmart profit warning. Consider diversifying to weather the storm

U.S. stocks extended losses at Tuesday's open as investors mulled disappointing earnings from Walmart and General Motors and braced for results from Big Tech due out after the bell.

The benchmark S&P 500 tumbled 0.6%, while the Dow Jones Industrial Average declined by roughly 100 points, or 0.3%. The technology-heavy Nasdaq Composite fell 1.1%.

The International Monetary Fund further downgraded its forecast for global growth this year and warned of a "gloomy and more uncertain" amid worse-than-expected inflation.

The market sentiments now is filled with uncertainty as investors had thought that the dip had bottomed from the past weeks bounce. Certainly, this was not the case as we’ve seen recently in the past few days.

Volatile periods calls for a reshuffling of portfolio in many investors and traders where they may opt for defensive sector equities ie. REITs, F&B, Utilities or Healthcare which has shown resilience against market turbulent.

Regencell Bioscience Limited’s (NASDAQ:RGC) a bioscience and healthcare company which focuses heavily on R&D and commercialisation of Traditional Chinese Medicine (”TCM”) treatment specifically Attention Deficit Hyperactivity Disorder (”ADHD”) and Autism Spectrum Disorders (”ASD”), and infectious diseases affecting people’s immune system such as COVID.

A little background on the CEO, its investors and stock-option plan which we know so far,

- Chairman and CEO support
? Since RGC’s incorporation in October 2014 up to the IPO, the Company has been fully funded by its Chairman and CEO, Mr. Yat-Gai Au. (whom is also a practitioner of TCM)

?Upon the IPO, the Chairman’s loan of USD $3.25 million, was converted into ~342,000 common shares at the initial offering price of USD $9.50.

? Pledged to not draw salary and bonus of more than USD $1 until the Company reaches USD $1 billion market capitalization;

? Will not award share options for himself;

? Since the IPO, RGC’s Chairman and CEO has purchased over USD $5 million in common shares on the open market. Most recently, he purchased [49,010 shares](https://www.sec.gov/Archives/edgar/data/0001829667/000121390022026630/ea160018-13da4regen_regen.htm) (~ USD $1.1 million) between April 1 and May 16, 2022, bringing his ownership to 81% of outstanding shares (~10.5 million).

- Billionaire investor backing
Samuel Chen, a successful early Zoom Video Communications (NASDAQ:ZM) investor is one of the major backers of RGC. Last reported 13G filing shows he holds a 7.63% stake in the company.

- Stock option lock-up extended
All directors and employees who were previously granted stock options upon the Company’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.

Having the full support and confidence of the company CEO and its employees, we hope to see further upside and positive news on the company, especially on treatments of ADHD, ASD & Covid19 with the company’s TCM method.

[https://scr.zacks.com/news/news-details/2022/RGC-CEO-Figuratively-Putting-His-Money-Where-His-Mouth-Is/default.aspx]