Regencell Bioscience Limited (RGC) shares continued their extraordinary rally on Tuesday, soaring 29.13% in intraday trading. This surge follows the company's recent 38-for-1 forward stock split, which became effective on Monday and triggered increased trading activity. The biotech firm, focused on traditional Chinese medicine-based treatments for neurological disorders, has now seen its stock price skyrocket by over 46,000% year-to-date, despite having no revenue or profits.

The stock split, announced earlier this month, provided shareholders of record as of June 12 with 37 additional shares for every share held. Regencell stated that the split was intended to enhance market liquidity and make shares more accessible to investors. However, market observers urge caution, as the company's meteoric rise appears to be driven largely by speculative trading rather than fundamental developments.

Despite its massive market valuation of nearly $30 billion, Regencell Bioscience has yet to generate any revenue or turn a profit. The company reported a net loss of $4.4 million for its fiscal year ending June 2024. The extreme volatility in the stock price, including multiple trading halts due to circuit breakers, highlights the risks associated with such speculative movements and raises questions about the sustainability of its current valuation. Investors should note that the company's tiny float, with only about 6% of shares available for trading, may contribute to the outsized price swings.