RE:The REAL reason THTX stock price is declining.Every money manager loses clients, even during good times. There are just a lot of life events that happen that bring some turnover in the cleint base no matter the market conditions. But you are right that bear markets increase client angst and lead to more turnover. Fortuately, my firm has had an outstanding year so far and we have positive returns in many of our portfolios. So, our client losses in 2022 have been quite minimal. Also, Soleus has not been as decimated as I would have thought they would be given the type of stocks they own and they have not sold any THTX. But there are many others who may be losing clients and therefore seeing small sales of THTX go through as a result. And individual investors may be reaching the point of capitulation not realizing how close THTX might be to having good news on cancer. Overall, however, it seems like THTX has managed to bore investors to the point that few seem to care one way or the other given the unusually low trading volume. Obviously, that will change when news on cancer and/or financing or partnerships comes out, which could be any time.
Then again, there are stillsome remants of the bullmarket left out there in retail investor land. Last Friday another biotech stcok I own for our clients jumped almost 70% on no news. Someone must have highlighted it on Reddit or something. And companies declaring bankruptcy are often soaring again. Too bad that is not really an option for THTX ;) !
retiredRIA wrote:
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.