UTime Ltd’s stock (WTO) went on a roller coaster ride this week, plummeting by a staggering 93% on Wednesday following the announcement of a non-disclosure agreement with Bowen Therapeutics Inc. This agreement involved the acquisition of a laboratory at UMASS Medical School, a move UTime says is part of its strategy to enter the global vaccine market. Specifically, they’re focusing on developing a vaccine for mpox (monkeypox). Bowen Therapeutics has been researching the mpox virus and has developed what UTime claims is a promising hexavalent recombinant protein vaccine. UTime intends to oversee ongoing clinical trials and future vaccine development, aiming to expedite FDA approval.
However, the following day, Thursday, UTime’s stock price bounced back by a substantial 48% to 13 cents after the company released a press statement addressing the recent share price volatility. They assured investors that their operations remain unaffected and that there have been no fundamental changes to their business. In the press release, UTime stressed its commitment to transparency and regulatory compliance, announcing an internal investigation to ascertain if any undisclosed information may have contributed to the stock’s wild swings. The company urged investors to remain cautious and rely solely on official communications for accurate information.
So, what should investors do? When deciding whether to hold or sell a stock, investors should consider their investment timeframe, unrealized gains, and total return. UTime’s stock has seen a significant decline of 74.64% over the past year. An investor who bought UTime shares at the start of the year would experience a loss of $0.14 per share if they sold today. The stock has also dropped by a massive 90.16% over the past month, meaning an investor who bought shares on July 1 would see a capital loss of $0.61.
Investors should also consider market dynamics. The Relative Strength Index (RSI) can help determine if a stock is overbought or oversold. UTime stock currently has an RSI of 19.17, indicating oversold conditions. This means the stock may be primed for a rebound, although this is not guaranteed.
Ultimately, deciding whether to hold or sell UTime stock is a personal decision based on individual investment goals, risk tolerance, and market outlook. The potential for a successful monkeypox vaccine may attract some investors, while the recent volatility may deter others. It’s essential to conduct thorough research and consult with a financial advisor before making any investment decisions.
