Why Regencell Bioscience Holdings Ltd. (RGC) Surged On Thursday?

We recently published a list of 10 Micro-, Small-Cap Firms Dominate Thursday’s Gains. In this article, we are going to take a look at where Regencell Bioscience Holdings Ltd. (NASDAQ:RGC) stands against other micro-, small-cap firms that dominate Thursday’s gains.

The stock market edged lower on Thursday, erasing gains from the previous trading day that was buoyed by the Federal Reserve’s decision to keep rates unchanged.

The tech-heavy Nasdaq decreased by 0.33 percent, the S&P 500 declined by 0.22 percent, and the Dow Jones dipped by 0.03 percent.

On Thursday, investors immediately booked profits following the lack of fresh catalysts to further boost buying appetite.

However, 10 companies under the micro- to small-cap sectors noticeably defied market pessimism, having surged by double to triple digits. In this article, we have identified Thursday’s 10 best performers and detailed the reasons behind their gains.

We classify micro-cap companies as those between $50 million and $300 million in market capitalization, while small-cap firms are those with $300 million and $2 billion in market capitalization.

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Regencell Bioscience Holdings Ltd. (NASDAQ:RGC)

Regencell Bioscience soared to a new high on Friday, adding 46.25 percent to its valuation to end at $45 each following a share buyback program initiative.

Earlier this week, RGC announced that its chief executive officer, Yat-Gai Au, supported a share repurchase program and personally financed funds to finance the acquisition.

The initial transaction involved the buyback of 652,000 RGC shares from investment company Digital Mobile Venture at an average price of $9.5 apiece for a total of $6.19 million. Following the acquisition, Au owned a little over 11 million shares, representing 86 percent of the firm.

In the past four trading days alone, RGC’s shares were already up by 256 percent from the $12.62 closing price on Friday.

RGC is a biotech company that’s on a mission to commercialize traditional Chinese medicine for ADHD treatment, a subject that hits close to home for Au.

Overall, RGC ranks 6th on our list of micro-, small-cap firms that dominate Thursday’s gains. While we acknowledge the potential of RGC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as RGC but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.