Just taking me as a sample of one, I hold both CU6 and RAC (and previously IMU).
My forward looking view is that CU6 has a (max) upside of x1 or so left over the next 12 months, after delivering 10x over the past 2 years and 5x over past year. I believe the RAC sp is 12 to 18 months behind that of CU6, ie RAC could do at least 5x-10x over the next 12-18 months emulating what CU6 has performed at the very least.
RAC has so much expected news over the remainder of 2024 (refer RAC presentation extract below), not to mention the unexpected news.
I have been selling CU6 gradually in 2024 and reallocating capital to RAC, buying on market as well as funding the bonus options. What I have learnt over a couple of decades investing in ASX and global markets is that I have NO UNIQUE ability to pick the tops and bottoms. I am better suited to “scaling in” and “scaling out” of positions gradually, and taking profits gradually when it is presented to me. This approach saved me when IMU peaked at 62c in 2021. Like many IMU holders I was hoping for an exit in the dollars … $1 or $2 at least. However I was happy to gradually scale out from 60c to 30c. IMU is now 5c. Many of my family and friends are “stuck” in IMU because they were anchored on a target of $1 or at least getting back to highs of 62c.
Last Friday I sold 1,000 CU6 shares at $7.15 and bought 8,900 RAC shares with the proceeds. My CU6 sale represented just 0.02% of the volume of CU6 trades whilst my RAC buy presented a whopping 12.27% volume of RAC for the exact same dollar value of trade. I had to accept a buy at the day’s high of $1.56 for RAC. In other words I was moving the market in RAC due to its extremely low SOI and daily volumes. This is great for us long term holders in RAC. But the time to accumulate is when the stock is still unloved.
Stands to reason that if and when happy CU6 holders start to gradually take their mega profits in CU6 and looking for alternative biotech investments (I argue RAC will take a good proportion of the CU6 sales proceeds) then those CU6 sales will translate to market moving RAC buys, just like my simple one day / one sample example from last Friday. I am guessing a tipping point for when more CU6 holders will be happy to take more profits is $10 … a nice big round number and only 37% away.
Besides the known milestones over the next few months, we can also look forward to:
- Annual report to be released by30 Augustand staff trading black out period to be lifted 48 hours after. If Dr T and Dr Pete (and other board and staff memebrrs) are interested in buying more on market, this would be the ideal timing.
- JC’s contract runs out in mid-September - again, ideal time for a major transaction to be announced without having to pay JC a max of $5m for doing nothing.
(20min delay)