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Genetic Technologie Ltd; Deutsche Bank Buys.
Nov 23, 2015 4:09 AM | about stocks: GENE
If you haven't been following the news that's been circulating lately around Genetic Technologies Limited, then read along.
As of November 17th, 2015, DB filed a Form 603, and declared themselves a substantial holder with 579,200 ADRs. Let's clear up some of this noise, there is a lot of misleading information floating around social media.
ADR: American Depository Receipt, is one of the most convenient and popular ways to buy stocks of companies based overseas. This is exactly what DB did on November 17th. The 579,200 ADR's is equivalent to 86,880,000 ordinary shares under U.S. dollars. This also gives DB the voting power of 5.07%.
So why should investors care?
Genetic Technologies Limited (NASDAQ:GENE): With a less than impressive balance sheet, and the reputation for burning capital at an excessive rate, just got a substantial holder from DB? Why would DB be risking a stake in such a speculative company?
News: This transaction comes off the heals of a insider transaction of the CEO. Furthermore, earlier on November 2, 2015, Phenogen Sciences, Inc (U.S. subsidiary of Australia-based Genetic Technologies and maker of BrevaGenplus) commented on the American Cancer Society's (ACS) recent breast cancer screening guidelines, which plays directly in favor of BrevaGenplus. The company makes it clear they are ready to solve this clinical gray area, and offered some guidance on how their product can solve this new protocol from the ACS.
Speculative pharmaceuticals are typically known for their cash burning capabilities and their low ROI on investment returns. Although, once and awhile these sleeping giants can reward those shareholders who do their due diligence of their homework on these speculative investments. With that said, when a substantial player steps up to the plate, it's good to take notice and due some further research into what is really going on here.
What is BrevaGenplus and BrevaGen?
It's a simple swab-based test that help determines the risk of breast cancer. It's the first test of its kind validated to asses both 5-year and lifetime risk for sporadic breast cancer. With early detection assistance from BREVAGen, 95% of these women will have even a stronger chance of survival.
How is this product being accepted in the open market?
From FY2012 Q1 samples received were mere 78, in closing on FY14, samples received in Q4 were 1,096. Which suggest the marketing of the brand from the sales team has gathered some steam, and with BREVAGenplus just released October of 2014, this story is fresh and has plenty of room to gather some momentum.
All these catalyst and more could send this speculative pharma company to new heights. It's important to keep this company on your radar, since it's a low float stock and small catalyst can send this stock roaring back to early January highs.
Disclosure: I am/we are long GENE.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Themes: long-ideas, event-special-situations, new-shareholder-base, speculative, underfollowed Stocks: GENE
