What a week! PYC was trading in a tight range of 17-18c as predicted in my last posting.
Next week:- The $55M cap raise had a shortfall of $14M. PYC has a 3 month window to sell new shares at or above 17c through instos.
- That would dampen any on market buying of shares above 17c by brokers.
- SP would continue to linger around 17-17.5c unless good news is announced. Hopefully by end of this month.
The Bull Case:(1) SP has bounced up twice from mid Uptrend Channel (brown dotted line) => upward momentum;
(2) All 4 indicators on the chart (Fast Stochastic, MACD, RSI and Slow Stochastic) have flipped upwards;
(3)
The weekly technical indicators (2nd chart below) is showing STRONG BUY;(4)
SP is at the end of the pennant formation, SP is likely to break to the upside. Next Fibonacci levels are 18.5c and 20.5c.The Bear Case:The US and ASX markets are pretty toppy. If they start to pull back, SP could go down to Fibonacci level of 16c, then 15c would provide some support as it is the lower bound of the uptrend channel. LT holders would not sell up easily as they have learned from the 36% Covid Selloff in March where PYC made a strong V-shape recovery in 2 weeks then an additional gain of 21.4% in the 3rd week.
PYC already has US$1-2b of projected income p.a. in 18-24 month when VP-001 is commercialized. Quickly followed by PYC-001 and VP-002 racking in another US$5b and US$1b of annual earnings respectively, year after year.
But wait, there are more... It has a number of blockbuster drugs in the pipeline and they would only announce the details when the patents are secured. Read "
PYC - 2020 AGM Chairman’s Address and CEO Presentation.pdf" for more information.
PYC's official estimation of annual sales:- US$1-2b VP-001 Treating Retinitis Pigmentosa
- US$5b PYC-001 Treating Diabetic Macular Degeneration and Age-related Macular Degeneration
- US$1b VP-002 Treating Autosomal Dominant Optic Atrophy (ADOA)
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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