PAA 0.00% 22.5¢ pharmaust limited

GREAT NEWS, page-41

  1. 12,830 Posts.
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    It's an interesting observation of Market Behavior isn't it . And not one that I am all that surprised with to be honest.

    On the one hand , and if we look to ATX ( Amplia Therapeutics ) for strictly comparative purposes , we can see that upon their own announcement of Phase I ' Dosing ' Human Clinical trials for various Cancers and Fibrotic diseases , we can see how the market had responded to this apparent ' UNKNOWN ' event which elevated the SP to almost 20% once announcement had become ' KNOWN ' officially in the the controlled setting of the Market and ASX listing rules.

    On the other hand , we have the PAA share price determined to remaining idle in what could be a more temporary ' transient ' state of ' Equilibrium given the backdrop of this somewhat saturated ' UNKNOWN ' news emanating from a ' KNOWN ' study and recent affiliation / collaboration ....sneaky.png

    And in my opinion this comparison is valid because the similarities between these Companies / Biotech's are so striking when you look at them closely. At first glance you would argue that the ' relative ' movements on SP are the same due their similarity in the 10 - 20 cents pricing . They are BOTH extremely tightly held due their registers - ok with PAA having perhaps 2 - 3 times more shares on issue..... but this is still relatively low compared to others and adequately reflected in the current comparative market depths. One could argue that this provides much more liquidity right ..... ? And because of these features , these two companies' relative share prices are susceptible to wild and potentially large gyrations.

    However and probably the single biggest similarity with these Companies as far as my knowledge will allow , is that they are both operating in the FAK ' Inhibitor ' sphere of Biotechnology and Human Health - But everyone and their uncle is doing that right ..... rolleyes.png with the significant exception that NOT everyone has a ' Trial Ready ' drug in tablet dosage form ready to go on ALL it's human trials. right

    So o.k , ATX was up almost 20% upon release of this ' UNKNOWN ' news with the results of the trials not really becoming ' KNOWN ' until around ' Mid 2021 ' ...with PAA having at least 3 Human Trials ' in motion ' ....also with multiple disease applications.

    So I ask myself what then is the main difference between why these similar SP's of similar Companies operating in very similar Industries which are seemingly reacting so differently .....

    And the answer in my opinion comes back to the fact that because PAA is perhaps so tightly held that it is reluctant to respond to News which is ' KNOWN '.......' yet ' UNKNOWN ' in the context of being ' officially 'confirmed in anyway directly by the Company.

    And if you think about it closely - why would Investors who are ' Entrenched ' on this companies share register as with those who may be entertaining an Investment in this company. Why would they make a move one way or another until you can ' Fact Check ' these media reports against what may or may not be connected with the Companies drug candidate programs associated with MND. You wouldn't right ?.....unless you were a mad Speculator. So the result then is the SP remain's ' Held Up ' waiting for confirmation.

    And I know this thesis dispels the one which suggest to ' BUY the News ' and ' SELL the Facts ' .....but what I think we are more seeing here due ALL these ' KNOWN ' SP fundamentals and Company structures is this phenomenon of ' Wait for the Facts ' ,and then ' BUY the Story '

    Whichever way it goes , it would be my opinion given everything we ' KNOW ' about the ' KNOWN'S ' and ' UNKNOWNS ' ....is that there is really only one way from these SP levels , and that's UP. .....wink.png


 
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