Definitely agree with that Buzz, on 14th March Clinuvel announced to the ASX that the "Board of Directors view current market capitalisation as decoupled from the Company's value". PW said on the same release "Given expected earnings, underlying growth in existing and new porphyria markets, current cash reserves, and projected expenses over the next 12 months, redistribution of capital to shareholders through a buy-back program is appropriate". This was all as they announced a Share Buyback which was a fantastic and momentous occasion overwhelmingly supported by shareholders (it will also only use a tiny percentage of massive cash reserves), and just days later came a Clinuvel newsletter with further great news see below (underline mine)
"We have chosen the moment of a repurchase as first clinical results for 2024 are published, and we will keep at it until those who gamble against the Company have understood the message. Given the expected future cash flows, we are in the position to prolong the program when required, since Board and management do not believe that market value has reflected the Company's performance in recent months. To those shareholders who have proven supportive, we have waited for the right moment to strike on your behalf."
"The share buy-back further increases the relative percentage of ownership for our owners, and thereby compounds CLINUVEL'S strategy to minimise dilution. With 1,500,000 shares (or approximately 3% of the outstanding share capital) to be repurchased, we hold a longer-term view on capital management without jeopardising plans to reinvest and expand the Company."
"The first trading days after the buy-back announcement on 14 March dispelled the myth that the share price is reflective of performance only"
Every single word there was great in support of long-suffering shareholders and signalled a change in fortune was at hand and coupled with the news that Disc flunked their phase 2 EPP trial it led to some significant buying. In fact, ASIC data indicated that if the shorter did not pump an enormous amount of fake liquidity - about 500 000 new open short positions - into the market in those few weeks then the share price may well have exploded into the mid $20s. The short seller of Clinuvel clearly observes message boards and everything very closely and they understand they can't allow momentum to build, whenever chartists start to get bullish they dump the share price, too much positive sentiment or feeling and they dump the share price. In the past just a rumour of competition in the media (very suspicious I may add) was coupled with a massive short attack - strangely enough there is no media coverage of how Clinuvel are probably in the most monopolistic EPP position they have ever been in right now. And the shorter continues to attack CUV every single minute of every trading day because when the have such a high risk position they obviously want to keep that price right down and keep shareholders upset because if everything was cruising along nicely at a more realistic valuation (ie ~$30+ like cash burning, EPP trial flunking Disc) then they would be in massive trouble as CUV is so very, very tightly held and pretty much financially peerless.
So unfortunately they have let a nice momentum building opportunity slip at Clinuvel, 3 months along and the share buy-back is pretty much a non-starter, virtually no shares bought back, share price largely unchanged, CUV with more cash piling up in the bank and investor sentiment a bit confused with all above statements which were announced to the ASX. On the plus side competition going backwards and the shorter had to make a big increase to their open shorting position to control the price. On the downside management pulled the 15-17 y.o EMA application showing another misstep, and they in my opinion failed to recognise a nice opportunity and build on the positive momentum the above announcements created which would have been nicely compounded as this thread stated by some Director buying to show they are really aligned with shareholders and equally strong believers in the strategy as are many/most shareholders.
So lots of fighting words but a failure to capitalise on the situation and have a coherant plan. It's weird they have allowed the shorters to simply continue manipulating the share price and investor sentiment, surely 5 years of that is enough? They have bought a few thousand shares here and there with the buy-back as the shorters have dumped fake shares into the market but that is it. They need to buy a lot more aggressively in my opinion to back up their own words, use the buyback to actually raise the share price by buying-back 40 or 50 thousand shares on consecutive days. I don't think they have ever bought shares on a single day when the share price has risen, they are managing to stuff up something that should be fantastic for shareholders. Wolgen himself gave me a few concerns on the latest newsletter with his "this current period of market weakness" statement despite markets clearly being at ATHs, they really need to get some fresh faces on the board and develop some cohesion, people who can challenge and provide consistency like Sir Andrew Likierman. I think shareholders all like the strategy eg. get Vitiligo approved, grow EPP, grow the pipeline, get a tanning cosmetic released but there is a worry about some of the execution when mixed messaging occurs. Anyway, crapped on for long enough, easy day in the office I have some great stuff I have found with Artificial Intelligence that I will share when I get a chance.
(20min delay)