Industry news, page-16

My perspective is that it is better for knowledgeable/informed investors to keep accumulating stock before smart money biotech funds from overseas take a position. Strong accumulation like this will only have a strong spring-loading effect ahead of newsflow (a tightening share register plus lack of supply meeting strong buying demand / volume with newsflow or awareness).

Position sizes between 5,000 and 100,000 shares are where most of the accumulation is occurring (you can see that in the chart below). I've given these two groups an orange border. Accumulation is still happening in the 100,000+ group but it is masked by the selling of legacy management holders (Molloy, Garner, etc, etc).

Total shares on issue at end of September 2020 was around 127.5M. Based on a proportion of shares on issue at that time, 9% of shares on issue have moved into the two groups covering holding sizes from 5,000 to 100,000 shares. So in that time 11.5M shares combined has flowed into these two groups. That's some quite good evidence of strong accumulation occurring.

We have only seen reduction in the 100,000+ category due to legacy holders leaving (but this disguises the increase in the number of shareholders in this group - and increase from 177 at 30 September to 192 at 30 March ). Implied by numbers = 15 new entrants over 6 months (at least 1.5M shares accumulated into this group, notwithstanding existing holders in the group adding to their positions ).



The good news is that the amount of selling from legacy holders is slowing down. That's evidenced by slowing rate of reduction of the 100,000+ group.

Reduction of 4.2M shares in Q4 2020.
Reduction of 3.3M shares in Q1 2021.
We might see net outflows from 100,000+ group down to 2.6M this quarter (if same rate of reduction of outflows applies).