Okay, buckle up because this is one of those “only in the stock market” stories that’ll make your head spin.
Meet Regencell Bioscience (NASDAQ: RGC), a Hong Kong company that just pulled off what might be the most impressive magic trick of 2025: turning absolutely zero dollars in revenue into a 17,000% stock gain. Yes, you read that right. Seventeen. Thousand. Percent.
So what does this company actually do? They’re researching Traditional Chinese Medicine treatments for ADHD and autism. Noble cause, sure, but here’s the kicker – they haven’t sold a single product since going public in 2021. Not one. Their SEC filing basically reads like a confession: “We have no saleable products and have not generated any revenue from product sales.”
In fact, they’ve been losing money – about $3.6 million last year and $4.4 million the year before. Their business plan seems to be: spend money on research, lose money, repeat. They even admit they expect to “continue to incur increasing operating losses for the foreseeable future.”
But here’s where it gets weird (and by weird, I mean absolutely bonkers).
The Perfect Storm of Stock Madness
Regencell had what traders call a “low public float” – fancy talk for “there aren’t many shares available to buy.” The CEO owns 88.6% of the company, so only about 56 million shares were floating around for regular folks to trade.
This created the perfect recipe for chaos. Algorithmic trading bots and AI systems apparently flagged this stock, social media started buzzing about Traditional Chinese Medicine being the next big thing, and boom – the stock went absolutely parabolic.
By June, shares hit $595 each. Then came the pièce de résistance: a 38-for-1 stock split. Suddenly, instead of one $595 share, you had 38 shares at $16 each. This made the stock “cheaper” to buy (even though the total value was the same), and retail investors went nuts.
The split-adjusted price shot up to over $70, crashed back down, bounced around between $14-17 for months, and recently surged to $23 per share.
The Reality Check
Now, before you start googling “how to buy Regencell,” there’s a tiny detail worth mentioning: the U.S. Department of Justice is investigating the company’s trading activity. Just a casual federal probe, no big deal, right?
This whole saga is like watching someone win the lottery by accident while being audited by the IRS. It’s fascinating, terrifying, and probably not something you want to bet your retirement on.
The moral of the story? Sometimes the stock market makes about as much sense as a soup sandwich. A company with zero revenue can become worth $11 billion, while profitable companies get ignored. It’s a reminder that markets can stay irrational longer than most of us can stay solvent.
So there you have it – the wild tale of how Traditional Chinese Medicine research, algorithmic trading, and a stock split created one of 2025’s most bizarre success stories. Just remember: past performance doesn’t guarantee future results, especially when there’s no performance to begin with.