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The Hong Kong-based company focuses on researching, developing, and commercializing traditional Chinese medicine, targeting neurocognitive disorders and degeneration.
Regencell Bioscience Holdings Ltd. shares have been on a tear recently, more than tripling in value even before the first quarter of 2025 has ended. Retail traders, however, are not overly bullish about this stock.
Hong Kong-based Regencell focuses on the research, development, and commercialization of traditional Chinese medicine, targeting neurocognitive disorders and degeneration, particularly attention deficit hyperactivity disorder (ADHD) and autism spectrum disorder (ASD).
According to several media reports, the recent rally has been driven mainly by buying from insiders, who own 81% of the company.
The stock’s surge also comes amid a broader rally in Chinese stocks, driven by hopes of economic stimulus from Xi Jinping’s government.
Koyfin data shows that only three institutional investors have a combined stake of a little over $156,000 in the company.
A Stocktwits poll gauging retail sentiment on Regencell showed that 52% of nearly 1,000 respondents opted to stay away from the stock as it was "too risky for me," while 31% suggested they were buying it now.
Another 12% said they were selling and taking profits, while 5% claimed to have "caught the move early."
Over the past three months, Regencell's following on Stocktwits has grown by 48% while message volume has soared by 30,000%.
One bullish user claimed they bought Regencell stock when it was less than half its last close.
However, a skeptic argued that RGC actually moved up "on no news. I'm shorting and waiting for the rug pull."
Regencell has not generated revenue or a profit ever since it went public on the Nasdaq in July 2021.
It has a low float of about 802,000 shares, making it a highly volatile stock.
One Stocktwits user expressed strong skepticism, saying, "This reeks of a scam so bad. Hong Kong biotech with 12 full-time employees. Chinese medicine ancient herbs for ADHD. This will collapse."
According to Koyfin, no analysts currently cover the stock on Wall Street. The stock ended Monday 46% higher and jumped another 42% in after-hours trading.
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