Genetic Technologies Limited has explosive potential as the company has recently announced that six facilities will be begin offering BREVAGenplus(R). This is a new predictive risk test for millions of women at risk of developing sporadic, or non-hereditary, breast cancer.
The financials for the company are typical for a penny stock company, especially in this category. The company posted annual net losses, but sales have increased on a year over year basis for the past five years. Also, the company has a current assets to current liabilities ratio of 2 to 1, which is reasonable. Obviously, with the new announcement, shareholders are expecting the financials to change dramatically for the better. This stock could move big on additional press, new facilities offering the test, or better than expected sales estimates.
Just a few days ago, the company announced additional breast health facilities offering BREVAGenplus(R). The stock soared to $6 per share, but has sold off back to recent support levels.
GENE gapped nearly 50% to $6 per share a couple of days ago on more positive news. Since then, the stock has sold off and bottomed off in the upper $4 range where there is decent support.
Just after 2 pm yesterday, the stock spiked from $4.70 to $5.20 in a matter of minutes on strong volume. So far, a news announcement hasn't been made to explain the big move, but something may be coming. This company is very newsworthy as seen a couple of days ago.
On an intra-day basis, GENE found resistance at $5.20 per share as it has several times in the recent past. The stock then sold off and closed at $4.88. There is a decent layer of support in the low $4.80 range, so this could be an excellent low risk opportunity.
