RE: tomorrow26 Jun 2019 23:16
I think Woodford first lodged his sell order on ETX before the start of 2019 - on 1st January the share price was 6.35
Volume during January was a grand total of 197k shares, yet the price ended the month at 5.25
In Feb there were 555k shares traded with the price falling to 4.8
There was a 5m sell on 20th March that coincided with a 15m volume day and a fall down to 2.8 - so the first 5m of Woodford clearing.
From there until the end of April there was just 3m volume and the price stayed at 3p ish
May saw another 3m volume with the price falling to 2p, finally seeing the the first Woodford notification on 3rd June confirming that he’d sold 10m shares and explaining the fall.
Since then the price has fallen further before finally attracting widespread attention at 1.6p, now we have had 69m shares traded in 4 days - more than in the previous 249 trading days combined (and that includes 30m trades on 5/12 when the Novo agreement was announced, and the SP remained stuck at 6.63p).
With such a historically low volume of trades (you can download the daily data from the investors page of the ETX site), it’s no wonder that a 10m sell from Woodford decimated the price! The recent volume has meant that PI’s have actually dug into ETX and discovered a company in better shape than most AIM pharmas.
£5m+ plus in the bank, low burn, very recent collaborations with C4XD & Novo Nordisk and two separate broker reports with targets with valuations of 20p+
The reason to buy is that the price has fallen 73% since the collaborations with Novo & C4XD were announced, a 200% rise from here would still only get us to 5.25, which is still well below 1st Jan price. The high volume is here to stay until the price recovers to a sensible level post Woodford - with those 20p broker notes, the collaborations and a secure cash position, it makes the next few sessions a very enticing prospect!