Biotech stocks are fertile fields for manipulators for much of...

Biotech stocks are fertile fields for manipulators for much of the risk and binary events that occur will always generate volume one way or another. It's obvious the next few weeks/days are going to determine a binary outcome but one thing that's not so sure is how the market will react to it immediately. On low SOI and low liquidity stocks like RCE it would be quite easy to make it drop on good news with any ambiguity before running on as institutions/holders acknowledge the derisking event to buy more. It's definitely not uncommon for stocks to go in the red on good news and climb higher when you least expect them to.

One key risk here as a holder is the stampede at the gates should we all want to bail ship on drastically bad news (which I think is unlikely but not impossible) without the liquidity buffer of a higher SOI stock may have. To this end, it would also run on nowhere near as much volume as other high SOI stocks too should there be a demand for it where the supply isn't there for a decent holding.

Basically, the negative risk of low SOI stocks like this and other biotech stocks (RAC, etc) mean a potential for much more upside on demand - however with much greater volatility. As a result I think conditional orders here have to be set pretty carefully and pretty deep and wouldn't be something I'd personally opt for in RCE. Better to have a holding size you'd be happy to lose and not over-invest. Easier said than done, as I'm bag-holding and up to my tit in the stock from not being able to resist buying more at these prices

Nice breakdown in the annual report and the MOA descriptions of 327 were very welcome. I'm stoked to be able to get in at this stage of the company where there are so many professional votes of confidence from external institutions like Prof Fiona Wood, CSIRO, etc