RE: Trinity Delta 30th March11 May 2021 11:58
Up till now I believe the Hutchmed board and HHHL, having mishandled their ADS placements a few times, are quite happy with relying on getting big chunks of $100M investment from GA, Baring etc to finance the company to the point of “proven commercial success first”, then do a HK/Shanghai listing.
Why did GA, Baring etc invest? It must be the promise of jam tomorrow with Hutchmed meeting milestones and HK/Shanghai listing pushing up the share price.
Thus the company has been either deliberately keeping the share price low in order to attract these big chunks of $100M investments, or incompetently handling the situation. Either way, the result is same: the share price is low and getting worst. It is quite alarming to see that the achievement of milestones or getting awards did not make any difference. There has been a persistence lack of interest in buying HCM shares.
As the result of the lacking of buying interest, even a small-ish sell can push down the share price dramatically as the market makers will just push down the price until someone buy the shares.
I am beginning to doubt whether a HK listing can rescue the share price now as the company may have waited too long and missed the opportunity. Surely, any potential future Chinese investors in HK/Shanghai will look at Hutchmed’s share price history on Nasdaq and AIM markets and wonder whether this company is investable. They too buy shares to make money, not because of patriotic duties.
I will see how Christian Hogg presents himself at the fireside chat. Up till now I think he behaves more like a Chief Scientific Officer than a CEO while the Chair, CFO and CSO are nowhere to be seen. Not sure the non-execs are worth their money either.
I am certainly wouldn’t buy anymore Hutchmed shares. I am agonising as to whether I should hold until 2024 “proven commercial success first” HK/Shanghai listing, or dump it now while I am still in a tiny profit and buy it back when the share is lower, or just call it a day and move on.
Selling while the share price is rapidly down is rarely a good idea unless there are clear signals of the company heading toward bankruptcy which Hutchmed is definitely not.
HHHL, GA, Baring, Christian Hogg, etc all have big chunks of skin in the game. There is literally billions of dollars at stake here. No way these guys will stand idly and let Hutchmed sink.
So it’s a hold for me. It’s time like this that you need to have nerves of steel. Numbers don’t lie.
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