RGS's sp may very well be capped, helped by "dead wood" holders. I add the spec folks, those that knew news was coming, took a position, and sold the fact. Nothing odd about that, it even has an explanatory saying, "Buy the rumour, Sell the news." May well explain in part the CYP-Fuji (Disclosure: Own) sp moves. That's my view of the trading aspect of RGS. This action's dip for me is a BUY window.
The science side is made far simpler by the deal. AGC believes in RGS. The deal makes this clear, including AGC picking up the tab for manufacturing Progenza (on top of the $16.5MM). Make no mistake, this is a cut throat business; moreso in Japan where "business" is very close to "war." Or, if that's too stark, think: AGC just did my research/diligence for me! without the usual sp climb. (I partly attribute the current sp range to investor impatience because of the delays in signing this deal.)
Bottom Line: The sp will go higher.
OV
RGS Price at posting:
16.0¢ Sentiment: Buy Disclosure: Held
