Short Term Trading Week Starting: 12 June, page-23

STTCOMP RCE TA Long
SOI 178 MIL
MKT CAP APPROX $100m
Last traded 58 cents

Disclosure :- Long Term holder in the red

Substantial 5m share trade pre-market this morning. SP has been on a downtrend for sometime , like many biotech companies.
I have previously seen turnaround points when a large trade occurs after along spell head south. this MIGHT be a block trade to clean out shares that a holder has been dripping out for sometime.

On a macro level, there is anecdotal evidence that the US FED may well stop raising because DEflation is starting to enter the system. The US economy is strong, if slowing, but barring a War with China, which IMO is a higher risk than many perceive, the outlook 6 to 12 months away would be for declining interest rates, thus boosting growth stocks and the biotech sector. The effect of AI on reducing costs cannot be understated. Many high growth stocks have probably been bought up a bit ahead of their time in the past 10 years, but with advancements in tech and the inter-related nature of biotech research and the power of AI and computing power, I see these as the sectors to be in for the next decade.

Recent attendance at conference in South Korea by RCE management, sponsored by the WA Government, and an increased social media presence plus ongoing trials are all positive. Like many spec biotechs, RCE need to find a partner to fund further trials and IMO have sufficient evidence their assets work in a urgently needed area to attract such a partner. Time spent in the US are also leading me to think a deal may wel come out of a US based company

I think we may see renewed interest post 30 June and at least a return to around 72c. ( there may be further declines pre June 30 as stragglers take the tax loss. Tax loss selling is likely to have been a factor in that block trade sale this morning. But someone was also willing to stump up approx $2.5m for the shares.