The share price of Omega Diagnostics saw one of its biggest intraday gains in recent weeks with a 17 percent surge by the early afternoon.
Buoyed by a share price in excess of 70 percent for Abgingdon Health following a market update today ( Abingdon Health BioSURE progress boosts shares in testing times ) – investors appeared to pile back into Omega Diagnostics in the hope that a similar positive announcement would considerably lift the share price up from their recent lows of around 40p.
Omega Diagnostics has not issued a a market update and has been quiet on social media as investors await for confirmation of the government selecting a suitable COVID-19 test to put through its production line ( Omega Diagnostics CEO promises very exciting times as confirms landmark government deal ).
The last meaningful update from Omega Diagnostics was that it had taken delivery of government-loaned equipment in anticipation of a suitable lateral flow test being put through its production line upon instruction of the government:
👋 Stu!— Omega Diagnostics (@OmegaDiagnostic) July 26, 2021
And yes, we can confirm delivery of new UK Government-loaned equipment.
These are, after all, *very* busy times as we prepare our Alva HQ for the production of a government-selected lateral flow test.#ODXhttps://t.co/zHWnuARis1
A calculated risk by investors as ‘COVID stocks’ bounce back from lows
Buying back into Omega Diagnostics shares appears to be a calculated risk by investors. In recent weeks it has seen three other popular ‘COVID stocks’ bounce back following positive but not transformational news.
The controversial Remote Monitored Systems saw its share price soar 50 percent alone with a thinly-veiled mention of a distribution agreement for its face mask in India and Abingdon Health has soared 70 percent on news that a rapid antibody test is ready to launch that it manufactures.
Likewise, Novacyt has seen a solid recovery in recent weeks as it posted promising revenue guidance and less reliance on DHSC revenues ( Novcacyt share price soars once more as non-DHSC revenue grows ).
What investors appear to be buying in Omega Diagnostics is firstly that there is still demand for ‘COVID stocks’ and amplified gains following recent lows as the aforementioned movements in share price show.
Secondly, hope remains that Omega Diagnostics will announce that the government has finally selected a test to put through its production line.