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Message: The three fundamentals that matter most: Price Price Price

Okay.....here goes. Before looking at Resverlogix specifically I will share my views on how the larger market works.

https://youtu.be/gMShFx5rThI

This is a web based interview with Mad Money personality Jim Cramer from 2006. Its ten years old, but like the article about the so called "Wycoff Method" that I've posted before, there are manipulations that have been around ten, fifty....for one hundred years.

Cramer talks about a number of stocks, notably Apple and RIM. And he uses the word "foment"a couple of times. To foment means to stir things up, to create a negative or angry reaction, as in "to foment political unrest". Specifically he talks about how to demoralize "moron longs" by creating the impression of a broad based sell off. How? By taking out bidders and then hitting a stock with sell orders...pushing the price down.

Why? Well obviously to make money on the short side. And it works because ultimately the only fundamental that really matters to retail sheep is price. If the price for a stock is climbing things must be good, retail players are emboldend....buying releases endorphins into the brain and people are happy.

He refers to RIM as the "fulcrum of the market", and back in 2006 RIM (now blackberry) was absolutely huge, it was almost a benchmark....followed like the DJIA or the S&P 500. If RIM was up the markets got a lift, if it was down it affected the overall indicies. Cramer says he might have to commit something like $15 or $20 million to "knock it down"...

Okay.....does this stuff happen? Yes it does, its the Hedge Fund game. Hedgies have two items in their tool box that Mutual Funds don't. One is short selling, Mutt funds only go long...Hedge Funds can go long or short, and will do both with the same stock....pushing a stock down and profitting on the short side, then going long after pushing the price down and selling into a rally. The other tool they have is leverage, they can and will use margin to increase their financial firepower.

Okay....that's enough of the larger market, there's more in the interview but I'm sure the basic thrust is pretty clear. Now let's look at Resverlogix.

RVX has around 50 million shares in the public float by my estimation, if there is disagreement about that number please correct or share contrary points of view.

While I only showed up in early 2014 I know there are others who have been here for 10 years and more. And many bought shares back when RVX was trading for $10 and even $20+ in late 2006 and into 2007. We are a long way from those lofty share valuations now of course.

Now I am going to pull a figure out of my nether regions, $2 billion USD. If BETonMACE is successful and Apabetalone garners regulartory approval as a marketable drug I think that is incredibly conservative as an estimation for an eventual market cap.

Right now our market cap is somewhere around $150 million USD. Just to make the math simple and allowing for some inevitable dilution I am going to suggest that shares of RVX currently trading somewhere around $2 CDN, that they could be worth $20 with a successful BETonMACE trial....in point of fact I think a positive futility analysis could conceivably send us to that level just on speculation.

50 million shares in the public float....at $20 per, that is $1 billion CDN right there.

Now....I'm a retail investor. Do I know 100% for certain that BETonMACE will pass muster when the futility analysis is completed. Am I positive that the trial will ultimately succeed after 500 MAC events? Nope...I'm hopeful, in fact I'm optimistic, but I do not know....I don't think anyone does. So right there is an element of doubt, and doubt means uncertainity...and a lack of certainty can cause fear....FUD for short.

But wait....I said the only fundamental metric that matters is Price. The 3 most important factors affecting investor sentiment are Price, Price and Price.

So if there are big players who see the same potential that many retail longs do here....and if we retail sheep are holding onto a signficant number of those 50 million odd shares in the float. How can we be convinced to sell them? How can a whale get us little guppies, us "moron longs" to let go of our shares?

Price price price.

In that interview Cramer talks about needing someting like $20 million to knock down the PPS of a stock like Apple. How much would it take to engage in that type of activity for a stock like RVX. $1 million? Maybe just a few hundred grand.

80,000 shares sold short up September 20th.....buying them back at $2 each would cost $160K or so, provided there are shareholders willing to part with them for that price.

Is the market manipulated? IMO its not even up for debate.....the golden rule applies. Those with the gold make the rules, and there is always a bigger fish.

For my own part I have a firm and fixed opinion as to the value of the shares I hold.....and it ain't anything near $2. I do believe there are players using the tools at their disposal to try and shake those shares loose.....That's fine, it sucks but I have no control over it. And if I am right and RVX is being held down by those looking to accumulate.....then the only thing I can do is say "thank you" and take advantage of their activity and buy.

And if they push it down lower.....back down to $1 or even less? I have my opinion on Resverlogix's ultimate value so I will buy more.

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