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Think this is spot on and I would add that small cap liquidity is light at the best of times and holders should expect or anticpate swings like this as part of investing in this market segment. It's not stock specific, there's a market-wide liquidty drawdown in play with risk premiums increasing as part of rising bond yields. In the meantime, the company continues to recover, grow and invest in future growth, plenty of cash in the bank, no debt and paying a dividend, what's not to like?
Its not just ekf - the whole bio tech market has taken a battering over the last quarter - started late 2021 and has accelerated into 2022. Completely indiscriminate - start ups through to heavyweight pharma - no one is safe. EKF is investing in its business through both internal investment and acquisitions, is cash generate despite its investment programme, has plenty cash in bank, has double digit growth and growing EBITDA and PBT - and still gets hammered. As I said - its a sector wide downgrade - not that it makes it any easier to bear.....at some point it will be oversold - lets hope that happens PDQ. SB
Some notable selling today. I am at a loss to understand why, but your last post may offer an explanation.
Most of the buys are automatic trades, so someone also accumulating.
I have added some more today and I now on the limit of what I will hold for one share. I cannot see anything concerning and I expect to see a rise into the results, which we now are good.
Some forward guidance for 2022 would help, just allay fears that this EKF is not dependant on Covid for revenues.
Its altogether a strange market at the moment,
vig - does seem to be constant downward pressure at the moment - but on relatively light volume. Its possible people are just taking profits - its had a great rise in the last 2 years from 30p, and whilst we are at an 18 month low sellers who had held for a while will still be able to make a decent return in a choppy market. EFK normally reports end march so no worries there. Would be a good time to see some director support - although we are just heading into a closed period prior to the EOY results - which are both 'strong' and 'ahead of already upgraded market expectations'. Ones things for sure - diagnostic testing is a huge growth sector - and we are in the right place to develop in this space alongside the scaling of our contract manufacturing business. SB
More automatic sells showing up, but one large 100k buy this afternoon.
No real idea on who is selling, but the share price seems to be pegged back at circa 63p.
Release of 2021 results I understand may not be until March.
Yes, I was in SXX and thought that was pretty solid. That was a painful experience. . I think Anglo American got a bargain! and I guess the government were not focused on the shareholders as the jobs and project were assured by AA.
Re EKF it looks clear someone is offloading shares, so the price is drifting down.
I will post on here if I can get any information to throw light on this. Vig.
Thanks - didn't see the Singer note - broker notes don't seem to get updated here. Price is at an 18 month low - should move up towards actual results expected late March 22. Unless the market knows something we don't - like an acquisition and fundraise. Good timing on your move into cash last week! I note you were also in SXX - not a particularly pleasant investment experience for me - just didn't see that outcome coming and still gets me that the government did not provide more support to help unlock the debt package. SB
I think you could be right about people making assumptions that EKF are reliant on Covid ( like ODX, GDR etc) and thinking they will take a hit from related revenues in 2022. I personally don't think so as they quite well diversified.
I was selling up a lot of holdings last week, but decided to hang on to EKF. You can never be completely sure in this game as sentiment plays as big a part as fundamentals at times.
FYI Research note from Singer Capital Markets yesterday was pretty bullish with conservative target of 86p
Agreed - does appear a disappointing reaction to a good update. Another issue may be the perception that the covid trading side of the business may not be as strong moving forward and as such growth will focus on core business which has performed well with a 13% increase but that's perhaps less than the market expected - albeit ahead of previous projections. That said - the business does refer to diversification into non-covid testing and the ADL purchase will build on that capacity. As you say - don't see any specific risk here other than people moving into cash and the global market issues. Don't think we will be at this price for too long. SB
My opinion:
Someone is offloading shares at the moment, but there are regular A trades buying up shares at around 62.
I don't know why they would be offloading in advance of stellar results, but they may have bought in at a much lower price and taking profits.
On top of this we have the macro economic uncertainty (Ukrain + +) so people are moving to cash.
I cannot see any reason to worry personally, as EKF seem sound and have a good fwd strategy.
One of the few shares I hold now, I have opted for cash now until the macro economic volatility subsides,