The Montgomery-Asberg Depression Rating Scale.
We were flying from Hawaii to Las Vegas yesterday and when we landed, holy sh*t. Compass Pathways (CMPS) the one-time shining beacon of the entire Psychedelic sector closed at $2.25 down 49%. Did they fail in their trial, we wondered? This was looking like another MAPS* who failed last June, with their PTSD treatment using MDMA. It was the first ‘completed’ Phase III trial.
The failure took the winds out of the entire sector, dropping it from cannabis hyped valuation to grossly undervalued.
A there’s a lot of ways to describe a stock dropping nearly 50% in one day, that was already down 80% from its peak. From the peak of $59 in 2021 to $5.90 a month ago, and then a single day 50% whack – is not something we see too often. Hmmm interesting.
So after landing in Vegas we went straight to the MGM Sports Book to do a little research. “Beat down, bitch slapped, bludgeoned, clobbered, mauled, pummeled and taken out to the shed and shot,” are all things which come to mind.
There isn’t a single long-term investor in the past four years who is up on their position. Though traders have made bank numerous times. Which got us to wonder, is this a another trading opportunity here? Has anyone who wanted to sell, sold?
We think yes. And we think yes, this has trading opportunity written all over it. So let’s look at the charts and yesterdays scoreboard. Then we’ll peek at “Montgomery-Asberg Depression Rating Scale‘” which we believe only a handful of investors understand.
SCOREBOARD
CHART
So…
110% +39% +75% +203% +120% = 547%, or an average of 109% for each beautifully and perfectly timed trade! We’re not short-term traders, don’t have the mentality for that…but could it go up from $2.50 to $5.00?
Well duh, especially because they reported their treatment is safe (so far) and effective. Their goal (see below) was a “3.6” but the street was looking for a “5.”
Montgomery-Asberg Depression Rating Scale (MAD).
AKA as the ‘wigged out’ scale for short, or MAD, Compass’s psilocybin drug reduced depression symptoms by 3.6 points, short of the 5-point benchmark expected.
ATAI (ATAI) Sells 2,660,000 shares at $6.00
*MAPS FDA Failure: Flawed, scandalous trials tank FDA expert support for MDMA therapy.
