PYC finally broke out of the pennant formation and heading up...

PYC finally broke out of the pennant formation and heading up again!

Decreasing volume as SP consolidates means selling pressure is easing and confidence returning. In my last post, I mentioned 14c remains to be a resistant unless better news such as another lead drug candidate is announced. Bingo! PYC announced last Friday 07.08.2020 that it would add a 2nd drug pipeline in 2H 2020.

"PYC’s retinal pipeline expansion is progressing well. An additional drug program is expected to be added to the pipeline in 2H 2020. Pre-clinical development for this program is anticipated to be rapid, as it uses the same delivery technology as PYC’s lead drug program."

The bull case: Another leg up as long term investors could see a quantum leap in future recurring earnings from the 2nd drug. The 1st drug for RP11 represents a US$1-2bn p.a. target market. It translates into 34c - 68c per share of income per year every year. Even if the 2nd drug brings in half of that, it would still be 17c per share per year! No wonder the current SP of 12.5c makes a fantastic entry price at the ground floor. Also keep in mind that the CPP Library and platform technology would easily be valued more than 12.5c per share.

• 1st projected target is 14.5c on or around 24.08.2020.
• 2nd projected target is 16.5c - 17c on or around 02.09.2020.
• Do expect a slight pull back when 1st target is reached. This is to re-test the upper bound of the uptrend line now becoming support before heading to the 2nd target.

The bear case: This is less likely but some would like to wait for the SP to hit the bottom of the uptrend line at 9.5c. Then again, 11.5c has now become a very strong support with 13 touch points in the last 2 months.

These are my TA thoughts, DYOR! If you would like more of these charts and analysis, please click the "Great analysis" button for encouragement.