Now we need more institutions buying this stock to give the market more confidence on this company. Chinese company investment is just the beginning.
At least it would trigger some short covering and stop more shorts coming.
If the phase IIb trial is passed, this company will become a serious investment target.
But for now, it's still just rebound. Maybe $15 is the best I could hope for.
Keep this in mind that the China company which just invested $5M in ORMP has $200M cash on book and near $200M profit per year. They might want to invest much more than $5M in ORMP in the future if the Phase IIb finished well. They could even easily take over the whole company if they really want.
Also there are many similar medical China companies like this one seeking investment opportunities on the market, this one might be just the beginning.
But maybe they would like to take 20% of the float of ORMP at least, who knows.
Even though, I would still be very cautious on this stock due to its high risk on drug approval etc.
A lot of shorts and day traders are on this stock so it would be always violent if you watched how
it went from $33 to $8 this year. So safe investment is the first concern, I only have 10% position on this so far.
I bought SYNM at $3.25 and then sold it at $3.75 since I felt the transfer of REGI shares might take much longer than I expected so I bought REGI directly instead.
By "previous SYNM shareholders" I mean those who got REGI share from SYNM share transfer.
I had been trading REGI since last March but I only traded SYNM for a few months due to the price difference between SYNM and REGI share price.
Actually FDA was approving their drugs for Phase IIb trial pretty quickly comparing other drugs from large companies.
The information you provided is not helping me at all but a waste of my time so I am going to ignore your posts from now. You could do the same to me to be fair.
Let me put it into a simpler way, the institutions are waiting for the previous SYNM shareholders to sell their 3.6M REGI shares distributed from REGI due to the purchase of SYNM.
So there would be some selling pressure until the rest of the SYNM shareholders decided to hold their REGI shares for longer term.
This selling pressure could last for weeks or months, before it's done, the stock price won't break $12 unless
there is any good news on the blender credits and that might be at the end of the year.
I will be a seller near $12 and a buyer near $10 for the next three months.
I don't know why are you here and you have no idea what you are talking about. Institutions had been accumulating their shares to about 25M - 28M now, almost all of the floating shares.
First of all, I was not a previous SYNM shareholder but a REGI shareholder.
Second, I am looking for opinions from previous SYNM shareholders since they knew the value of SYNM better than REGI shareholders. If you have no idea about the value of SYNM assets, then you are not the supposed reader of my post.
Third, the short squeeze depends on the demand and supply of REGI shares.
Clearly after about 3.6M REGI shares has been distributed to SYNM shareholders and ready to be traded, there are more REGI shares to be traded on the market now than last week.
Fourth, if you have lost lots of money on SYNM before, clearly you are not a good investor for others to seek advice from so you should keep quiet here and wait for REGI to grow until you could break even on your previous SYNM investment or simply sell it now and move on if you have no confidence on the future growth potential of REGI or the extension of the blender credits.
If the blender credits is extended for the next three years.
I would expect REGI to have up to $20 cash and $30 book value per share and thus the valuation of the stock might be up to $25 - $30 next year not to mention the long-term growth potential of REGI which nobody could really tell for now.
How much does it worth?
1. How much revenue and profit per year could it bring to REGI if the plant is restarted?
2. How much extra blender credits per year will REGI get is the blender credits is extended?
Maybe previous SYNM shareholders could answer these questions better?
At what price can you break even on your initial SYNM purchase?
Survey for previous SYNM shareholders, what is your expectation for your REGI shares?
In another word, how much are you willing to sell your REGI shares or are you planning to hold REGI shares for long-term investment?
Hold your breath shorts.