CU6 - ASX Charts, page-2097

Clarity's stock fell over 70%: But Lets not Confuse That With a Broken Company!

[This one is for those who believe that fundamentals drive value. APOLOGIES for another funnymentals post on a chart thread]

I agree with those who say that most companies whose stocks fall 70%+, never return to their all-time highs. But, most of those falls happen for a reason, and that reason is usually weak funnymentals .The story collapses. The science doesn’t hold. The drug fails. The market isn’t there. Etc. Once the hot air clears, there’s nothing left to lift the stock back up!

Clarity fell 70%+! But was it because of failed trials? Negative data? Regulatory delays? Product failure? Nope. None of that.
With fundamentals intact, we are left with things outside of Clarity: valuation mismatch, short-term market mechanics (incl macros), and maybe even positioning ahead of a raise! The interview with Michael Frazis was very welcome as it said to everyone that nothing has broken in the actual business. Afterall, its the business behind the stock that we invest in!

And if fundamentals are what drive long-term value - Clarity is going to be just fine. Falling from AU$1.6B to $600M didn’t erase the science, or break the platform. It didn’t change the unmet need either. It just reset the runway.

And lets also remember that Clarity has reacted to these market dynamics, including the share price crush, by pruning its pipeline. By closing trials that were going well, so as to preserve cash and elongate the runway, Clarity can not be judged the same way as some company whose drug failed. This is not Opthea! Which brings me to a question;

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Just How does Clarity measure versus Other stocks that we love?

The chart may be looking uglier than most, but this is NOT just another junior biotech.Let’s stop thinking, or even pretending it is.Clarity has:
a) Multiple clinical-stage programs across diagnostics and therapeutics,
b) A true theranostic platform with scalable, superior chemistry,
c) Products that are not theoretical: they actually work,
d) Phase 3 is already underway - not a speculative Phase 1 shot in the dark (or dim lighting)!

Compare that to almost all pre-revenue names we’re all holding in or portfolios, some of which don’t even have functional human data yet. We are sold stories with no data, and we buy into them! I'm glad we do - and I do too (I was in OPT)! But to turn around and suggest that Clarity is somewhat broken, especially while still holding the other stocks I shall not name, sounds rather disingenuous to me!
I have great respect for Chris B, the visionary Telix CEO, for seeking a tie up with Clarity. Telix is not a small player - they are eyeing $1.2billion in revenue this year 2025. Clarity has superior products, and the road to FDA approval is already cleared and paved.

Sentiment can swing while fundamentals keep working quietly in the background.

Not advice — but perspective.
DYOR. Fundamentals matter.
And Clarity still has them in spades.