The model definitely calculates cash burn. That is what leads to many of the Red FSTs, the company is about to run out of money and desperate. The stop lights in the upper left hand corner also depict short term financial health(most recent quarter at the top), as well as long term on the right row of lights.
You are correct, ultimately the slope goes down because long term most of these companies don't/won't exist. That's why these aren't all auto plays, there has to be some research to support the chart.
Also, what you see elsewhere is not necessarily indicative of what is inside the model, or what good plays looking like. You're seeing a lot of post run charts from a big runner that day, just trying to generate clicks. Many people see a 100% runner, and start searching sites for more info on it. So I post our chart, and probably some sort of sarcastic jab at it.
Oddly, the last 3 posted SNES, BPTH and TMBR would have been plays that definitely warranted further research into, as just the chart's appearance are those that we look for.
Charts might look similar out of the dozen or so you are looking at, but when you start scrolling through 100s of them in a search, they definitely will look different.
The premarket action is a liquidity injection by those who are manipulating the stock and have skin in the game. News alone doesn't force price to increase, it can make it move, but we often see some that jump up 5-10% for a few minutes because some algos pick up the news event, then come right back down. That's because the company/book runner did not have it planned for the price to go up.
A news event is usually used to inject liquidity, and that's what causes these runs. Throw in a book runner who gets 3% on the offering, plus the option to buy 3 million extra shares to sell in the run, and it is in their best interest to also run the price up. Also, in some offerings, the company will authorize the use of $X for the book runner to purchase shares in the open market, to increase share price. This is all in black and white, they tell you what the play is on many of these. You just have to look for and find it.
CLBS was a prime recent example of one I was in, expecting the news of a COVID trial starting. News came, price went up 10 cents for 3 minutes and that was it. I sold immediately because I've seen it happen many times before, and of course that started a decline in share price. I cashed out up about 7% I think?
So, this was also interesting because the CEO had just purchased 50,000 shares 2 weeks prior. When insiders buy these micros, its always because something is about to happen. This leads me to believe that they did not have the Press Release worded correctly, and the news algos that buy on certain words didnt get the party started correctly so they aborted mission. Or, they are planning on a second PR to announce full enrollment of the trial, and use that one to run it.