NCYT Shareholders1 Dec 2021 12:12
The big challenge NCYT has is that it’s now stuck between a small company full of retail shareholders and a larger company comprised of institutional investors.
A company full of retail shareholders struggles to have a stable base meaning shares are constantly changing hands. This creates an environment where the day trader and the shorter are in paradise.
Larger firms can go in and impact the price by opening up shorts and scaring the retail investors who then sell on the panic as they have no plan to keep the shares long term causing the SP to rapidly drop. As NCYT matures and keeps growing people will start holding the shares for longer.
As we’ve just seen people have owned the stock for a month down at the 250s and have sold at the peak making 100%. They probably have no idea what the company does but because of the type of shareholders NCYT has it attracts short term traders.
The PR / IR team should be working round the clock to attract more institutional investors who will hold the shares for years.
All the company has done over the past 3 sessions is add to the cash position through selling more tests and the investment case has been solidified as covid continues to persist.
Previously NCYT has struggled with working capital constraints meaning the plethora of tests they manufacture, have been unable to achieve the CE mark meaning they have not been available for wider circulation. The cash pile changes this and underpins their growth strategy going forward.
Once long term investors are fully on-board the SP could see significant gains but in the short term it could well be controlled by the day traders and shorters causing these wild fluctuations resulting in the market cap changing by £100 million in two sessions.
Research the fundamentals and decide whether or not you agree with the long term vision of the company. Day to day fluctuations are irrelevant if you are a long term holder.