The REAL reason THTX stock price is declining.
As other asset managers on this board know (whether they are still actively managing money or not) clients tend to change financial advisors more often during down turns. No doubt there are many advisors who have some of their clients move away from them. The “new” advisor points out to their prospective new client that “any asset manager who has held on to TH stock without a stop loss order is not wise” They would use the decline in TH price as further evidence this prospective client should move their assets away from the current advisor. The new manager wants to align a new client with their stocks, which means they will sell TH in the portfolio that is being transferred to them for asset management.
Most of these clients would have at least 5,000 to 10,000 shares of TH, a small part of the client’s portfolio.
It doesn’t take too many clients moving to a new money manager to have TH sell off, usually in first two weeks of transition. IMO, THAT is what is happening. The new manager isn’t too concerned about waiting around for TH to go back up. They are not going to start tracking TH. Therefore, you have many more people selling TH than buying. I don’t think this is addressed here on Stockhouse very much.