Right on cue! I trust some HC members who read my last post have benefited in trading PYC shares.
For the last 5 sessions,
SP has been tracking the predicted curve well (light blue). And it did hit the bottom of 15.5c in the anticipated trading range (pink box). There is a buyer with 1,000,000 shares at 15.5c but only 80,458 shared got filled on open. This could trigger the robots and pros to switch into buy mode. SP quickly recovered and peaked at 17c before closing at 16.5c on Wed 28.10.2020.
Dilution with a 1 for 10 offer would cause a value reduction of 9.0909%. Hence CR at 17c means the true value of each share is actually 15.45c or rounded off to 15.5c. So this is a critical level for SP to drop to, this was how the trading range bottom was derived in my last post.
Wednesday's volume was 2.6X the 12-month daily average, then followed by 2 days with half the average volume means the
selloff is pretty much finished. In the absence of any news, SP would track sideway in a consolidation pattern between 16-17c next week. You need to understand not all investors are LT holders. A lot of people who bought into PYC in the last CR at 5.5c would be very tempted to take the fat 290% profit especially against the backdrop of market jitters caused by Covid and the US Election.
Just looking back at
October, PYC has pulled 3 rabbits out from the hat: new drug PYC-001, VP-001 successful on 5 patients' cells, and new drug VP-002. It managed to catapult the SP from 15c to 20.5c, a whopping 36.7% rise BEFORE announcing the CR. The management must be commended for the SP hike in order to buffer the investors from a massive drop from CR discount and dilution. Otherwise we would have been staring at a 12c bottom in the trading range.
After all these years and the hard work done by the team in PYC (both management and the scientists), the CPP platform is now a rock solid drug transport into the human cell with high efficacy and low toxicity; far superior to AAV virus based methods. Lipid Nanoparticles Delivery (LNP) is the other viable transport method and on 14.03.2019 PYC has entered into collaboration with Professor Dan Peer of Tel Aviv University in Israel. Professor Peer is considered a honcho in the field of LNP systems.https://ramot.org/news/2019/collaboration-agreement-with-phylogica-sirna-deliveryI have a warm and fuzzy feeling that more good news would come out in Nov/Dec and 26c by year end is possible, a joyful Christmas for us all.These are my TA thoughts, DYOR! If you would like more of these charts and analysis, please click the "Great analysis" button for encouragement.
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