RE: My View6 May 2020 02:56
Technicals are strong buy..fundamentals of company is good..Also, Today’s 2nd RNS on share placement gives all the more reasons to buy/ double up/ topup/ stay invested in GDR....this is why
The RNS clearly states the reason for placing shares were to support “RAPID DEVELOPMENT of GDR SARS-CoV-2 assays, fund the scale-up of the Genedrive-96-SARS-CoV-2 test including build-up of inventory for an initial period, fund product development, commercialisation and general corporate purposes”.
As per investopedia “If the motivation for the share placement was a circumstance in which the company saw an outstanding opportunity for rapid growth that simply required additional financing, then the eventual extra profits realized from the company's expansion may push its stock price substantially higher"
It’s common the shares decline after an RNS on share placement however that’s over and gone as the share price nicely surfaced back up and closed at positive 220p tonight...
I’m expecting all the long term/ professional investors to come in for GDR now...
P.s. don’t forget the technicals..”STRING BUY”
Investopedia ref link on how share placements can influence a company’s sp : https://www.investopedia.com/ask/answers/052815/how-does-private-placement-affect-share-price.asp