Genetic Technologies Limited (ADR) (NASDAQ: GENE)
When it comes to Genetic Technologies in the market recently, the key word has been dilution. Recently, the company raised millions of dollars; issuing new shares to do so. As a result, dilution hit the price of the stock hard; causing it to plummet from $9.82 per share on February 18th to a close of $3.70 per share on Friday.
It Seems As Though Dilution Is No Longer An Issue
While share dilution did bring the stock to incredible lows over the past month and a half, it seems as though the issue is behind us as investors started to jump in with heavy volume today. As a result, the company’s stock skyrocketed. By 9:30, heavy trade volume brought the company’s stock price to $4.03 per share; and that would prove to be just the beginning. Currently (1:02), GENE is trading at $4.54 per share after a gain of 22.70% so far today.
What We Can Expect From GENE Moving Forward
Back in February, when this drop began, I weighed in with my opinion of the company; stating that I believe we will see a bit of a decline from share dilution, followed by strong gains in the long run. I’ve got to admit that the decline we saw was much heavier than what I expected. Nonetheless, I still have faith in the fact that Genetic Technologies is a great company with great things to offer the biotech space! With that being said, I’m still expecting long term growth out of GENE.
What Do You Think?
Where do you think Genetic Technologies stock is headed? Why? Let us know in the comments below!