KYTX: Cup & Handle Forming on a Deep Value Backdrop

Technically, KYTX is setting up with a classic cup and handle. The cup has formed, the handle is in development, and price is tightening just beneath the breakout level. A clean move through resistance could trigger a strong upside extension -- the structure is solid.

Now for the backstory:

At $2.14, KYTX is trading at a level that’s hard to justify by any rational measure. The company holds approx. $285.98M in cash against just $8.24M in debt, resulting in a net cash position of $277.74M, or $6.43 per share. Meanwhile, the market cap sits at just $90.98M, giving the stock a negative EV of -$186.98M. That’s not just undervalued -- it’s structurally mispriced, IMO.

Factor in institutional ownership from heavyweights like Gilead Sciences (9.56%), Bain Capital Life Sciences (7.8%), Novo Holdings (4.28%), Westlake Village BioPartners (10.5%), and Vida Ventures (10.47%), and it's clear that some of the smartest money in biotech is backing this name.

The dislocation between price and fundamentals here is, frankly, laughable. At some point, the market will have to reconcile that. As always, do your own DD. I'm long and bullish. Stay tuned!