RE: Innova £1.2 billion contract win10 Apr 2021 19:29
Beret, the thing about charts is not to predict what they will do, but to react as to what is most likely to happen.
Look, an RNS could drop Monday and the SP immediately goes to 400p.
What is happening currently is the SP seems to have found a level, 250p-275p, based on the expectancy of further positive news in the next few days.
There is a push-pull on as every days goes by without news you get a FOMO for the next day, until you get to a tipping point where the market stops expecting news to arrive.
Clearly with a rising SP the market is firmly of the belief that good news will drop and soon.
When the SP fell 20p in a couple of minutes on Friday I assumed it was the washout from NCYT and bought another £10ks worth as it started to recover just as quickly.
Now there is possibility I guess, the fall was on the Innova order. I don't know which (or it may have been something else)
I try not to get over involved in stocks just for this reason. Once you start "wanting" something to happen, rather than reacting to what's in front of you, you lose whatever edge you might have had. (That's one reason why most PI's lose money.)
For me, on the one hand it seems simply inconceivable that AS, in all the interviews, in all the test related tie ups, that something very good test wise is very, very close not to unfolding.
But I don't know how to explain a govt order for another 3 months worth of inferior tests alongside that.
A scenario might be that this very incompetent govt, (which I think is true), is so useless that they have broken their word or promises to AVCT at various stages and left them out on a limb and AVCT have reacted by no longer trying to get on board with the uk govt but going global from the outset.
That would explain the Mologic tie-up and the Spanish hospital testing link as well. It would also then validate AS's remarks for me (as its me that is having the doubts for the UK), about being so bullish about tests and the size of the market and time scales, because he is ONLY looking now to initially sell into anywhere but the UK. And he is in fact having the test manufactured now, by other non-uk global manufacturers ready for lift off.
Then it falls into place. (That's my positive Spin and why I am still invested to the level I am).