u/Fantastic-Row1967

Question is as it is above. I feel like all the kindling is there (20% short, multiple catalysts, 180M PRV voucher sale not priced in), and institutional investors seem to be increasing their positions. Assuming there is a positive Danon update, what do people think the odds are? Will there be a violent rerating to above $5? $8? $9? $13+? I’m looking at the +20% short and the gamma on the calls. I’m hopeful.

I appreciate the feedback on my last post, which was centered around the clinical side. I want this discussion to be more focused on the technical indicators and market sentiment.

Hi everyone,

Disclaimer: this is not professional advice and I used AI to get these numbers. Not sure if they are great, and take what I say with a grain of salt. DYOR.

I’ve been a lurker for a bit, am a new-ish retail trader, and I have recently loaded up on RCKT after a lot of research. Ive taken a very bullish position on it for what I believe to be a steep discount on the stock and added potential of multiple (re-rating?) catalysts within the near-to-immediate future: $150M+ PRV sale announcement, Danon P2 safe dosing resumption announcement, and domestic production / commercialization update during May earnings call). Further, the company has invested in a domestic manufacturing facility in NJ and is hiring a LOT of new people recently per their LinkedIn postings. Management approved a $100M at-the-market offering and are pushing an option trade back, which I take as a signal that management thinks the company valuation is as low as it will go right now.

But, the stock tanked after the Kresaldi approval ($5.10-> $3.50) and even dropped after the $180M non-dilutive cash from the PRV sale today (3.50->3.40), and the short interest right now is crazy at over 20%. It’s been trading around $3.50-4 since Kresaldi. There is an earnings call sometime in early May during which they will likely give a clinical pipeline update.

I estimate it’s discounted future cash flow to be worth well over $7 a share right now and is likely to reach that $13.68 “high” price target if there are multiple positive updates on Danon Disease Progression, the commercialization of Kresaldi, and their domestic biologics manufacturing ops within the coming weeks. So now I’m all in on RCKT stock and an aggressive amount of options. I literally signed up for options trading for this stock specifically and bought my first ever calls. But, I’m wondering if I am missing something - something others with more experience see.

Do you all think the PRV award is reflected in the stock price? What are all the shorts betting on factually that I’m missing? I know investors consider the Danon disease program to be high risk following the 2025 May patient death, but would the FDA really approve trial resumption if the amended protocol had a significant chance of another patient death? Is rocket pharmaceuticals rocketing this month (or next)? I’m new at this and want to know if my high-conviction play is warranted or if I am about to learn my first “market lesson.”