RE: The American 🇺🇸 investors2 Nov 2023 11:47
Porky9 Premium Member
Posted in: VAL
Posts: 6,253
Price: 55.25
Strong Buy
Terrific Thursday – 74p to 85p Range Inbound28 Oct 2021 05:48
Still trending towards 80p peer average as we await the major news.
Plagued by de-ramping posts Wednesday by certain individuals trying to encourage retail to sell to gain a couple of pence discount off our already low £ 36m mcap value. Despite this we still added albeit a small amount. Volume 2.6m which for a half term holiday day for this stock wasn’t bad. Thursdays are generally a higher volume day so confident for today.
Despite our mcap value being so low, when a share price starts recovering its typical to see this tug of war with bears wanting the price to decline to get in cheaper and bulls expecting the price to go higher due to its undervalue.
Research shows that this happens because new investors can be cautious about buying where it’s perceived the price has already gone up (despite the shares being cheap due to the true value being materially undervalued) Psychologists call this anchoring. As humans, we tend to take our time when it comes to changing our opinions in the face of new information, even when it's good news.
Currently, the market is slowly starting to hear more about Valirx, and the information is spreading, the presentation still being syndicated, and investors are catching on.
Normally, this emotional tug-of-war often ends with a ‘new high’ with the stock drifting higher in price over the coming weeks and I’m confident we are going to see this here.
Obviously, when the contract confirmation does land, we should see a material step change in the share price anyhow.
There are some other catalysts for a further move north in the meantime, such as Suzy updating us on other projects, Biofunds taking an interest or gaining some positive coverage in the share publications or mainline media to create further awareness.
On balance, I remain incredibly bullish, I’m a buyer at this low mcap level and I’m sure many others will also see the strong risk/reward ratio at this point and also take a position. Once contract confirmation lands there will be a stampede for this stock but I would certainly like to see us trending at least in that peer average range before that happens.
This is a great biotech to be supporting
GLA