RE: teczs24 Sep 2020 16:15
mannan,
A lot of people are still working from home or on furlough; those who have an interest in shares have had the time and opportunity to be logged into trading accounts and to watch prices go up and down in real time; this is a luxury that they normally do not have.
These wanna-be Robinhood Traders have pumped the market full of liquidity, and they have been recycling gains into the next 'hot share'. Many have made good profits out of bio shares with exposure to Covid-2019, and they seem to have got overconfident in their ability to pick winners. As the price goes up more are drawn in forcing the price even further up.
The company has said that results of the VAL201 trial will be released in the next few days and the FOMO factor has well and truly kicked in. But, it seems to have kicked in amongst people who are buying in based on what others are claiming and those people making ridiculous claims are not being challenged - Valirx have not cured cancer; it is a trial to work out safety and dosing amounts.
I expect the house of card to crumble - if it was a 1 drug company a collapse could be due but there are other compounds that folk might hang their hopes in for a while. The company even apologised to investors for a placing at 7p when they said they were taking advantage of the general enthusiasm for the sector.
Obviously I could be wrong but I see a bitter ending coming - it happens all too often on ramped shares on AIM.