The drop is only 'unreasonable' when you look at a 12-month chart. If you zoom out to 36 months and consider a) a possible funding overhang over the next 12 months and b) first revenues likely 27/28 (assuming all goes fine on the trials, which is a big if) then it's not inconceivable this could eventually revisit late 2023 levels, say $1.50-1.80's.
I actually feel very sympathetic towards management here - normally when you see a share price run this hard in a pre-revenue company with large required cash outlays, the prudent thing to do is to raise capital, minimize dilution, and fortify the balance sheet. However Clarity had A$111.1M of cash as at 31/12 so it'd be extremely hard for them to find any narrative under which they could raise capital, except for "our share price has run way too hard, too fast and we want to take advantage of this", which obviously wouldn't cut the mustard with investors. And they had already done their A$121M raise in March. So in many ways they've been trapped, unable to take advantage of a mooning share price, and now consigned to deal with a bunch of dissatisfied investors as the share price rightly comes back down to earth.
I am interested in the company/trial, but there's really no catalyst to buy it any time soon. Patience will most likely be my friend, especially as shorters continue to build in anticipation of an eventual equity tap. Sorry it's not more bullish commentary but I think that's the plain truth here.
CU6 Price at posting:
$2.22 Sentiment: None Disclosure: Not Held
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