G'day BULTANA et al,
I have no real knowledge of why Cellestis has traded down so hard today. However, before anything else I should say that it has a habit of doing this and then recovering over the ensuing day or two.
Okay. There are no fundamental reasons whatsoever that I am aware of for today's trading. The company announced more than a week ago that it expects the CDC guidelines for use to be published by January 2003. Following that release we would expect sales to start in the US.
Last week a Canadian study, based on CDC and WHO data was released which examined the financial benefits of testing immigrants to the US for latent TB (currently this is not done). The report estimated a saving in future treatment of ensuing active TB at up to $US90m per year. The US dept of Immigration is one of Cellestis' target markets.
The market may have got a little confused by a press release put out by Oxford Uni through the BBC last Friday. This press release discussed a test for latent TB that they have "developed". This test has, in fact, been around for some time and is not an effective competitor to Quantiferon TB.
Unless there is some announcement before Christmas (I have no info on this one way or the other) then I would expect CST to continue to range trade between 150 and 200. It looks as though somebody wanted out today (maybe their daughter wants a pony for Christmas). I am quite confident that there is no hidden bad news lurking.
Typically, when days like this occur, the faithfull take advantage and pick up the bargains. I would be one of them but have no available cash this time.
Relax.
Add to My Watchlist
What is My Watchlist?
