Nigel has been in the regulated financial services industry for nearly a decade, has previously owned a financial brokerage and has written many times for sites relating to personal finance and trading.
Ocugen (NASDAQ: OCGN) has entered Tuesday trading with a further 10.5% gain, as retail traders continue to bolster the bullish surge, following rumors surrounding a Covid-19 vaccine from partner Bharat Biotech.
Following an impressive start to the week, the stock price of biopharmaceutical company Ocugen continues to surprise analysts whilst pleasing the mass of retail traders that have hijacked Ocugen price movement.
As one of the most discussed stocks on Reddit’s r/WallStreetBets, as well as trending on numerous other stock forums, Ocugen’s price growth is arguably built on not a lot more than aggressive blind faith – but we’ve seen what that can do before.
There is some reason to believe that Ocugen’s support isn’t completely unwarranted. Even though there has been no specific stock-driving news, its partner Bharat Biotech has developed a Covid-19 vaccine (Covaxin); now wavering on the edge of approval from the WHO.
Yet there is firm reason to believe that this just doesn’t equate to long-term profitability for Ocugen. Primarily, for the company to find success in Covaxin, the vaccine would need to be a key player in the US – and with vaccination now at 70%, the slice of the pie is growing ever thinner. Again, the U.S and Canadian authorities would have to give the green light, and there is no assurance that this will happen any time soon.
The truth is, Ocugen is still a long way away from success. Sure, there may be goals lingering on the horizon, but whether or not they are achievable in a profitable time frame is a different story. Once the mass of Reddit retail bulls lose interest, It wouldn’t be a shock to see the Ocugen stock price tank, with a potential for 80-90% price retraction.
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