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ODX share price & downside risk

I've been tracking Omega Diagnostics for a while now but haven't found a good entry point since news it was potentially gonna sell to COVID-19 test kits to the government.

It seems volatile but with decent support around 55p over the past few weeks.

Successful, easy-to-use test kits are a huge market and if they crack it will dwarf any of their historical earnings but it all seems up in the air. 

The problem I see is that the 'good news' has been priced in hence its huge jump - if the good news doesn't come or the commercials not good enough, there seems to be a big downside risk as the company is not really doing well in other areas. 

What does everyone else think? I'm thinking a small investment could be good still on hope it does do what it has set out. 

Your analysis is hitting the mark with me. Good news is it's support is around mid 50's but I guess patience will run out and will be a mass sell if confirmation of sales doesn't come soon. With the Test consortium, I'm also unsure how this will all work out too. 

Confirmation of a big order will send the stock flying. Going small seems good though as it'a risk.

Saw the interview today was really reassuring to see more than just a focus on coronavirus testing. Doesn't seem this virus going anywhere soon, testing is going to be sooooo important all the time. 

Fresh

Not sure I agree that news is priced in the current share price. Awaiting CE mark and India orders +++. The share price has been as high as 90p in recent weeks, I suspect a positive News report will see quite large rises here.

 

Quote from WhiteShark on August 13, 2020, 8:16 am

Fresh

Not sure I agree that news is priced in the current share price. Awaiting CE mark and India orders +++. The share price has been as high as 90p in recent weeks, I suspect a positive News report will see quite large rises here.

 

Think you're right, no way it's fully priced in at the moment. I read that the order for the DnaNudge covid testing gizmo was for £160m from UK government alone. That dwarfs current ODX revenue. 

For sure, some really positive commercial news will send shares flying. Interview with Colin King was interesting as shown an ambitious business with some diversification too, so a bit of a safety net!!! 

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