RAC - Charts & Price Action, page-18191

Risk is all about where the company is in its pipeline development. You make a good point that it doesn't tell the whole picture. This is very true. This is how investors make money out of drug discovery companies. They pick the diamond from the rough before the market recognises its true value.

RAC has a market cap circa $140 million. Take away money in the bank, gives an IP value of over $120 million. In 2019 that would have been cheap. AML and breast cancer studies for Bisantrene in the 1990s were showing similar results to what it is showing now. FTO is exciting and has huge potential. But that is still some way away.

Check peers. That is those in the same stage of development. IMU would be the only other cancer drug company on the ASX with an IP value per asset close to that of RAC. But IMU has $160million in cash and 4 completely different and independent assets. So I think we could consider it de risked in comparison to RAC. There has been chatter about traders posting on RAC threads to manipulate the price. With its low volume, its almost impossible to trade effectively.


I reduced my holding of IMU starting at 35c on the way up some years ago. I still free hold 750k shares, but wont be spending money investing there, apart from quick trades. It can be easily traded due to its high volume. As I believe there is better value elsewhere. Holders there, like RAC should still do well.

We dont need to agree. I am probably well off course with my calcs. But for every buyer there needs to be a seller. Two investors with differing ideas. Both think they are getting a good deal. Its how the free market works.

I would suspect most of the larger RAC holders have average buy in well below where the price is now. With the low volume, it makes sense to hold, as any sell will lower the price. The low volume proves the diamond hands holding these shares. Any buyer wanting to take a position will raise the price for exactly the same reason.