sadly i think public offering is not a good sign
$Recursion Pharmaceuticals(RXRX.US$ it means they're running out of capital and need to raise funds. not a good look for the business. i have a sizeable position nothing too big but it's sizeable about 2% of my portfolio.
the price of 6.50$ is lower than current market price. it is not ridiculous to predict that the market price will gap down to 6.50 in the short term. i guess i will have to see it as a way to average down my cost if i still believe in the business.
if I'm wrong please correct me.
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aims to identify stocks with rock solid growth fundamentals with 10x potential. also dabbles a little bit in trading
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102458277 : They are offering much lower price than the current market price . I bought them recently with 9.35.
Jensen 108 : look likes fair value is below current stock price. need to hodl until completed rationalise of stock price
103053687 Jensen 108 : is it too late to cut loss?
MomentumPython1337 OP 103053687 : cut loss is a double edged sword. should reanalyse the business situation and decide if it's a fundamental issue. it could also just be a sign that they want to expand the business and need to spend more in the short term.
long term I'm still bullish on the theme of AI for drug discovery. i have even considered joining their company as I work in this field as well.
once you cut loss you're saying goodbye to the ownership, if it rebounds you may regret. but if you see other better use of your capital then yes cut loss is an option.
10baggerbamm : one has to understand that anytime they invest in a young startup and that's what this is that's in the healthcare of the biotech arena that the one thing that they do constantly they being the companies is burn money and they burn money in an accelerated rate much quicker to a greater extent than a comparable non-healthcare non-drug oriented type of company. so even though one could argue and say this is a software tech company it still falls under the health care biotech drug arena where there's going to be a significant amount of FDA approvals that have to occur throughout its evolutionary period. and as a result there's multiple offerings that happen that's why despite Jensen investing in this company you only want to have your baby toe and sectors like this because they take much longer and you don't want to position yourself where you get frustrated by dilution which is what this is where you lose a significant amount of money short-term which is what's happening and miss the long-term opportunities. we were I guess we don't know so if you have a hundred thousand dollar portfolio $1,000 is all I would put into a company like this with a 5-year horizon
MomentumPython1337 OP 10baggerbamm : yes you make very fair points I do think RXRX shouldn't be seen solely as a biotech they have their own AI supercomputer and lots of machine learning people in the company with the recent remarks by CEO trying to present themselves as an AI company I think that's the right move the problem is convincing shareholders that it's not the good old biotech . I've seen their proprietary datasets those are the main bottlenecks for other biotechs it's the lack of high quality data so I'm really quite bullish on the potential here they just need to translate that into revenue more efficiently or at least land more partnerships with big pharma
it's hovering between 1-2% of my portfolio so thereabouts with your 1000$ out of 100k ratio I'll just have to be patient with this one and avoid making emotional trades I've only been constantly adding a fixed sum every month instead of a big lumpsum to manage risk
MomentumPython1337 OP 10baggerbamm : their recent acquisition of Valence Labs is another big trigger for me I've seen the work that comes out of Valence it's cutting edge top tier work I know this as someone in the field reading their research they had people at Montreal Institute of AI (MILA) it's one of the best AI institutes in the world there are some real smart people working for them so if I were to place a bet on AI advancing drug discovery I feel good doing it with RXRX
10baggerbamm MomentumPython1337 OP : if you didn't listen to the shareholder conference call yesterday which was a pre-planned script that was read by Jensen you need to go back because he talks about the different areas that will benefit from generative AI in the future and it is geared towards the medical industry is one of the segments and the healthcare industry and the research industry. and it really is how much time will be saved by identify what is not working that all of these models will be capable of producing results that will save a significant amount of money and time. so while he did not specifically talk about this company indirectly that's what he's referring to
152390662 : who can participate in $6.50 share purchase? can existing retail holders buy more? or only institutional.?
Notforsale 102458277 : I sold it when it touched 9.74.
Will try to scoop some more soon as I entered initially at 7.50