Post by
Viking2233 on Jan 23, 2024 11:29am
Liquidity Issues
So the Algorithms continue to dominate this stock and keep pressure on the share price from rising. We have had what I consider a number of material news releases recently along with several dating back to the summer.
Our next level of resistance is around $1.60, we have finally been maintaining the $1.50 range.
We need to attract big buying volume but the question remains what will it take to get daily volume in the 200,000 range versus the anemic 10,000 average daily volume we have experienced for more than a year.
One only needs to look at level 2 bids & asks to see the daily bids are the same two houses who happen to be the market makers and the same 3 houses of the ask side (CIBC, Scotia & Anonymous) This pattern has been here for more then 12 months,
What will it take to get the shorts to cover and algorithms to flip to the positive.
There is no doubt in my mind that the shorts anticipate a successful phase 2 AKI trial but smell blood with a huge bought deal being required to proceed to phase 3 trial.
Phase 3 is where more serious interest will be taken by institutional investors but facts remain this stock has a small float, huge insider interest but liquidity is a major issue for them to invest not to mention our current share price and listing on the TSXV may also create issues preventing institutional participation.
Its a fact that we are grossly undervalued for where we are in the process plus the science behind the name. We should be at $8 not $1.50 but we seem to be going in circles chasing our tail. Material News that should positively impact the share price is not moving the needle.
First dosing should be announced soon, will that have an impact ???
Personally I believe the results will be better then anticipated due to a much higher dosage bring used. The facts are there is no current treatment for Acute Kidney Injury and Arch has much more of the drug manufactured then they require for this phase 2 trial. Do they anticipate an emergency authorization in the not so far off future, that could be a game changer.
Maybe Arch doesn't require a bought deal with Bay Street sharks. Look at Arch strategic advisors, has Arch been silently communicating with big pharma for the padt 2 years. Just maybe big pharma judt waiting for this phase 2 data to either pull the trigger or invest and fund future phase 3 trial.
Lets not forget the Canadian Federal Government who have provided funding in the past.
Lots to be excited about but just widh we could see a major shift in momentum and a return to a fair market valuation We currently sit close to $100M market cap when we dhould be in the $700M to $1B market cap based on similar staged peers.