RE: Why,why,why15 Mar 2023 21:08
Avacta is already valued at £350m - that’s a lot for a company that’s burning over £500K a month and generating next to no income.
In terms of the SP fluctuations the short lived spikes are making it harder to sustain any gains because each time the market creates a new batch of trapped investors / traders who will be relieved to break even if and when they get the chance.
Whenever people are speculating why the price maybe up or down they seem to overlook basic market mechanics. The problem is one of excess supply, there’s approx 270m AVCT shares and 1.75m changing hands every day. Demand is what drives higher prices, there’s simply not enough demand for shares (at the moment)
This market is a self for fulfilling prophecy, what everyone fears is the price collapsing and group behaviour is causing just that, by rushing to buy on news AVCT are a sitting duck for short sellers and these are usually organisations with very deep pockets (not retail, I don’t know of a UK broker that provides the facility for AIM stocks - spread bets are not short sales as they are derivatives and don’t show as trades add volume on the tape)!