Missed Company Earnings, Market goes down. Time to
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In recent weeks since market has touched levels that, said that are the low point of the current bear market, there’s been a change in leadership among best performing sectors.com
For most of the first half of 2022, the only sector posting gains was energy, with utilities living up to their defensive reputation and posting the smallest losses among the 10 remaining sectors.
But since June 16, technology and consumer cyclical stocks are the leading sectors after being hit harder than the rest of the market in the first half of the year. Stocks leading the bounce include Amazon (AMZN), Tesla (TSLA), Home Depot (HD), and McDonald’s (MCD).
But watchfull eyes are looking out on whether it is just a relief rally or a more durable trend.
Good investors should not time the market, but to adapt and rotate based on the market sentiment and trend. Defensive stocks are a recommendation for all cautious investors ie. Healthcare, Utility, F&B and REITS.
A small cap healthcare industry which has not yet reach mainstream media is Regencell Bioscience Holding (RGC).
RGC is an early bioscience healthcare company which focuses on R&D and commercialization treatment of ASD, ADHD and COV19 using Traditional Chinese Medicine (”TCM”) method.
Unlike some early-stage companies, where it can be difficult to parse the many ways in which founders and executives may benefit whether or not the company succeeds, RGC has taken a more transparent approach that is well-aligned with shareholders’ long-term interests.
Some highlights about the company executives and founders, showing long term conviction in the company:
- CEO to draw only $1 annual salary and no bonus until the company reaches a $1 billion market capitalization
- CEO to continue company share buyback to demonstrate commitment to the Company and position against short and distort sellers.
- All directors and employees who were previously granted stock options upon the Company’s IPO have agreed to a further lock-up undertaking for a period of six months after their stock options become vested. As their stock options are set to vest on July 16, 2022, their shares will remain locked up until January 16, 2023.
This brings to a healthcare stock which had been recently IPO last year July 22’ which had seen a a good run of 300% capital gains after listing. Shares have taken a heavy hit from short sellers and hedge funds whom had strategically targetting the company stock. However RGC had recovered to the $30s, encouraged by study results for Regencell’s RGC-COV19 Traditional Chinese Medicine (TCM) formula for treating COVID-19 symptoms, frequent shareholder communication, and support for the shares in the market.
[https://scr.zacks.com/news/news-details/2022/RGC-CEO-Figuratively-Putting-His-Money-Where-His-Mouth-Is/default.aspx](https://scr.zacks.com/news/news-details/2022/RGC-CEO-Figuratively-Putting-His-Money-Where-His-Mouth-Is/default.aspx)