NASDAQ trading is directing ASX's.
Retracement is common as initial huge spike and stop out from traders.
I didn't expect GTG was institutions' favorite until I checked broker data yesterday.
Apart from aggressive sell from Pershing which probably was from placements, Instinet, Morgan Stanley, Canaccord, Goldman Sachs, UBS, Wilson, Merrill Lynch, all are net buyers over last nine months, collectively loading net of 215m shares.
Do you think these institutions sold over last few days? I highly doubt, will check the data while available next Tuesday.
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I tried to figure out why all institutions have loaded GTG.
Had gone through company presentations and history again, and prospective does like attractive.
BrevaGenplus potential:
- Test price USD$723 (AUD$1,000) - 65% recoverable from insurance
- Potential market size: 8.6m women
- Potential market: US$6.2b
Then applies risk factor, still a good number for thoughts.
If GTG can achieve just 100,000 test per year, annual revenue will be A$100m, gross margin 95%, less sales and admin costs, research, still would make nice profit.
The share price will be determined by US investors and institutions.
Let's wait and see if they agree or not.
June presentation:
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http://gtgcorporate.com/staging/wp-content/uploads/2015/09/GTG-management-presentation-June-2015.pdf
(20min delay)