This company is actually quite special, focusing on using natural therapies to treat neurological diseases, with an emphasis on ADHD (Attention Deficit Hyperactivity Disorder) and autism (ASD). Simply put, it is not about traditional Western medicine nor hardcore biotechnology, but rather follows a route of 'natural therapy + herbal medicine + traditional medicine.'
Its selling point is quite attractive, but as it stands:
– No stable income
– Still conducting early efficacy observations
– No large-scale FDA clinical approval (none seen for now)
In other words, the current core selling point is more of a story concept + potential expectations, still quite far from real commercialization.
Why did the stock price suddenly explode?
The core of this surge comes from:
1. 38 to 1 stock split: The stock price has been split very cheaply, making it easier for retail investors to participate;
2. Low circulating market: There are very few circulating shares in the market, making it easy to be speculated by funds;
3. Market hot money: Recently, the sentiment for small-cap and meme stocks in the U.S. stock market is particularly high, and RGC has tapped into this rhythm.
Simply put, the recent rise is more about 'stock splitting + capital driving,' rather than a sudden explosion of the company's fundamentals.
What does the future market look like?
Advantages:
– ADHD and autism are areas of high global demand and attention; once it has some results in the future, it could indeed attract long-term funding.
– The company's approach is very asset-light, with low R&D costs, unlike traditional biomedicine companies that burn cash.
Disadvantages:
– No revenue support, very high risk.
– Currently, there is no authoritative large-scale clinical validation, more so early, regional small sample tests.
– This big surge has short-term overdrawn a significant part of the 'emotion', making a quick correction very likely.
My view:
– Short-term players
You can go for it, but the key is to be quick, keep a close watch on the market, and definitely set stop-loss and take-profit levels in advance to avoid getting trapped.
– Medium to long-term players
This company has a bit of high risk, and its fundamentals cannot support it; it is recommended to wait and see, don't rush in.
– Looking to make a swing trade
This surge is too intense, a deep correction is likely coming; wait for it to retrace to support before considering an entry.
Summary
RGC is currently a speculative variety played by capital, not a value investment.
Short-term looks at the atmosphere, mid-term looks at storytelling, and long-term relies on clinical data; otherwise, it will eventually be brought back to reality.
