What Triggered the Wild 120% Rally in Regencell Bioscience Stock (RGC)?
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What Does Regencell Bioscience Do?
Regencell focuses on developing traditional Chinese herbal therapies aimed at treating conditions like ADHD and autism. The company has no approved products, no revenue, no patents, and no distribution channels—its herbal treatments remain in the early stages of clinical testing.
What's Happening with RGC Stock?
RGC stock snapped a 10-day losing streak on Thursday with a 120% gain. The shares have skyrocketed by more than 17,000% year-to-date.
On June 16, Regencell's stock surged around 300%, reaching an all-time high following a 38-for-1 stock split. The company said the split aimed to improve market liquidity and make its shares more affordable and accessible to investors. However, it has been trading down by over 70% from its peak in June.
The company recently pointed out that short sellers are behind the recent rally and suggested a possible short squeeze. However, experts doubt this claim, pointing to data showing low short interest and modest trading volumes. For context, a short squeeze happens when a stock's price jumps quickly, and traders who had bet against it are forced to buy shares to limit their losses, driving the price up even more.
Regencell's Financial Performance
Regencell has posted net losses for six straight years. On June 30, 2025, the company shared its unaudited results for the six months ended December 31, 2024. It reported a net loss of $1.85 million, slightly better than the $2.19 million loss in the same period the year before. The update also showed lower operating costs and a small rise in total assets, suggesting a modest improvement in its financial position.
Is RGC a Good Stock to Buy?
RGC may be a risky bet, but its recent stock split makes it an appealing option for bold investors. The stock split lowered the share price, attracting more retail traders and driving strong buying interest, especially during price dips. With few shares available, any good news like success in a clinical trial could trigger another sharp price jump.
While the stock may seem overvalued now, the traditional Chinese medicine (TCM) market is expected to grow significantly in the coming years. If Regencell's therapies prove effective, they could potentially sell at premium prices.
On the flip side, even in the best-case scenario, companies in this space face tough regulatory barriers in Western markets, where herbal treatments must meet strict approval standards. With limited clinical evidence to back its claims, Regencell could face a difficult path forward.
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