RE: how we are looking16 Jul 2020 12:33
@Moneymaker2015
I would slightly disagree with you there, I think you get signs of the top before a drop is coming, it's always about the instrinic value, the assets and the sales behind the company.
Give you two very recent examples from Covid stocks:
- NCYT, early doors you could see that NCYT was the biggest player in the game for the gold standard NCYT test, some companies were talking about developing tests but none were at the level of NCYT. Eventually NCYT ran up to £4-5, then you saw a couple drops followed by a rise back to £4.50, the smart people at that point sold, because 1. Covid cases and deaths were dropping, 2. Other companies were actually getting their tests out, getting them CE marked, these tests were faster and played on the agenda of moving away from lab tests and towards POC tests.
- AVCT, a lot of hype building around the saliva test, the share price was at £2 and was threatening a breakout to £2.50, the RNS suggested that the test was ready to go within a week or two, once we didn't hear anything, it saw a little drop and then a return to £2 with people anticipating news on that Monday, but once again, smart indivdiauls would have realised for a test like this to be developed, accuracy tested and approved, it would take a long time. Today they sit at £1.17.
Bottom line is you always hit the top, a slight retrace and a test of the highs one last time, there's where doing your due dillegence and research is so important.
Today we look at EUA at 18p, it's so clear to see that 18p is no where near the top, and if we do our research, we know the inistric value of the company is way higher then 18p, our assets are worth billions, we have an excellent BOD, and the icing on the cake is we have entered a takeover process with UBS and CITIC behind us, if that doesn't scream BUY then I don't know what will.