Long time stock market players will be very familiar with this saying:
Someone employing this strategy with Resverlogix would have gotten as much as $1.68 or as little as $1.12 CDN for their shares of RVX.TO in May of 2018. For the sake of simplicity I'm only going cover RVX's Canadian trading, not the US OTCBB.
RVX.TO closed out May at that low end price of $1.12 which means that in June the PPS climbed 119.6% based on Friday June 29th's closing price of $2.46
Here is June's chart.
June did see some news:
- June 7th old news about Apabetalone's potential to treat HIV was regurgitated
- June 8th announced the withdraw of a share offering first proposed back on April 17th
- June 14th reported the FDA has indicated if the BETonMACE trial is successful that approval of a NDA is likely.
Three PRs in June and nothing Earth shattering that I can see. Certainly not anything that would warrant a 120% jump in the PPS over just 22 days of actual trading in my opinion.
The idea behind the "Sell in May" strategy is that stocks often under preform in the summer months, so the move to cash is made with a return to the equity markets sometime around October when interest picks up again. Obviously though, at least thus far, employing such a strategy with RVX would have meant leaving a lot of money on the table.
On top of that the company has had 6 recommendations from the independent Data and Safety Monitoring Board (DSMB) for its Phase III BETonMACE trial and based on the roughly 4 month intervals between these reports another is due any time now. The last came out on February 26th.
We shall see what July brings.
Do note though that Canadian markets will be closed on Monday July 2nd due to the July 1st Canada holiday falling on a Sunday. Any fireworks on Monday will have to come from the US side where Resverlogix trades on the OTCBB under the symbol RVXCF where volumes are typically much lighter.
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