Member Info for EnricoPallazzo

Considering a 160% rise yesterday, a 15% retrace isn't too bad. Hoping for a good day tomorrow though, as I am now under water. :-)

The MM's are short of shares, so they whack a big spread to put buyers off. However, just as earlier at 55p, they won't find sellers and will have to close the gap and move the bid up. Next leg up awaits.

The payments from AZN to REDX, even not including the royalties, represent 4x the current market cap. It has to re-rate big time.

I meant the bid should be higher to enable a steady supply of shares; people don't want to sell below 55p.

The buying pressure should increase. There's enough interest at 60p but the bid is kept too low to enable a steady supply of shares to move the SP up. Once the bid jumps, the ask will follow and we'll motor nicely towards a new high.

The real spread is 55p/58p.

The drop to 47.5p was ridiculous. The MM's used yesterday's opening price to flush out stop losses.

Remember the numbers from the RNS: 17m pounds short term, 360m pounds long term plus royalties!

Patience, dear Watson. Good things will come to those who don't overreact. Day traders looking for a quick gain were likely caught on the early morning spike yesterday, and some of them have decided to take the hit now and chase another fast riser today.

The Astra Zeneca deal is fantastic and, if I understand correctly, the company cannot be taken over by the majority shareholder at anything less than yesterday's closing price (since it's the 12-month high). Plenty of upside but it's a ride for people with balls/ovaries of steel!

For the moment, a lot of churn at these levels. The longer it lasts, the stronger the support line drawn here. The company is definitely on the up, so we should see some positive movement of the SP. Spikes of +200% are perhaps less likely, unless we get another stonking RNS like the one yesterday.

Let's see a quid per share! Sounds about right for a lovely Wednesday...

OggyXX,

I like the ten quid version. Perhaps you should keep that for later, once we've cleared 130p?

Oggy70,

Did you think of changing your username to 'Oggy130', thus sending the SP towards that level? :-)

All the best
EP

Free float is less than 16m shares here. A quarter of that already traded today at an average price of 64.5p. This will provide a strong support for further rises this week. I doubt those buying today will want to part with their golden tickets for a paltry 10%, so they won't be selling today or tomorrow, leading to a further squeeze and providing great upward pressure.

Rome wasn't built in a day;, neither will REDX: it'll take at least another couple of days to show its true potential. :-)

Soon you'll be laughing at that 'premium', all the way to the bank!

I can see this getting to about two pounds this year, which would be a three-bagger for you! The long term payments from AZN (excluding royalties!) would still be more than the market cap at that level.

The beauty of this one is that it does not depend on the Covid pandemic to make money, as opposed to many other pharma companies betting on getting THE cure or vaccine to the market before everyone else. Which eases somewhat ethical considerations when making an investment (for those who have such thoughts; I appreciate that a lot of investors are ready to invest in arms, dirty energy and so on, as long as money is to be made).

Yes, that would be great but I'm sceptical about breaking the one pound barrier today. Tomorrow at the latest! :-)

It looks like the company had sufficient 'financial runway' with that loan until Q3 of FY2021. The 17m expected from Astra Zeneca in the near term should shore up the finances considerably, so a lot of upside here. The short-term test of 110p is in order. What's not to like?

I'm even so slightly jealous of those lucky b***ards who managed to buy below 15p recently!

Lovely to see something other than Covid-focussed stocks perform very well and bag a fantastic deal with a major pharma company. I hope this will be a great success for all those invested here.
Since the majority of the shares are owned by one investment company, doesn't that make the stock less liquid though, and more difficult to trade?

Nick,
It could be the order in which they were drilled and sent to the lab (only one rig was used, I think). The last two are also much deeper than the rest, so there's more material to check.

Today's pharma flavour of the day seems to be REDX. They've just landed a massive deal with Astra Zeneca.