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Even a few of our detractors have now come around
As folks guzzled on the covid testing hype, one man grew very rich. Graham Mullis was CEO of Novacyt (NCYT), a nothing biotech perennial dog, which just happened to have a test. Mullis was to be awarded a cash bonus, the size of which was dependent on the share price as of October 17 2020.
You do not need the brains of, the amazing, Rachel Riley to work out that Omega Diagnostics (ODX) needs to do a placing PDQ or it is in serious danger of going tits up, But for those Bulletin Board Morons who, having the brains of a park bench, are in denial here are the maths:
The last time I wrote about Omega Diagnostics (ODX) was back in June when I got slated for suggesting that the company had missed the boat when it came to Covid testing, and that its Department of Health and Social Care contract wasn’t worth the headline figure you so often saw people banging on about!
Abingdon Health (ABDX) will, no doubt, claim that its up to £6 million placing, open offer and Primary Bid offer at 25p is down solely to the DHSC not paying delayed bills. But then again this was a company that was technically insolvent before it raised £20 million at is IPO a year ago so, in my view, it has always been a basket case and I have explicitly warned you many times that a bailout was looming. For the record, this will not be the last one. So, who is next? Abingdon again or the other grossly overhyped covid dog Omega (OMX). But first a covid prediction…
You may remember that directors of Novacyt (NCYT) made an abosolute killing because of a cash bonus plan which was dependent on the share price at October 17 2020. Assisted enormously by news of a massive contract win with the DHSC announced on September 29 the shares were c930p on D day. Today they are 325p as the horror of the DHSC feck up emerges. As a reminder here is what Novacyt said on 29 September sending its shares roofing it:
I’ve recently found myself wondering how many of these ‘Covid stocks’ have missed the boat, as many of them still aren’t producing any significant amounts of revenue, yet often their markets caps are comparatively very high.
