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- 1 GDR stock price: The stock has been experiencing a downtrend since March 2023
- 2 The company has made a 79.2% decline in revenue since 2019. See whether the firm will make a comeback
- 3 The current stock price is near its all-time low, this may be a chance to place bets.
Genedrive PLC (LON: GDR) focuses on developing diagnostic tools for diseases and drug testing. Its Diagnostics segment is responsible for commercializing the Genedrive Point of Need molecular testing platform. The GDR stock has a market capitalisation of £12.7M.
Fundamental Performance of Genedrive
Genedrive’s last annual report shows that the company has faced a decline of 92% YoY in its revenue, The company has gained a revenue of just £49K, which is a 79.2% decline from 2019’s revenue of £2.3M.
Along with that, one of the major shortcomings is the net income negative of -£4.67M. It has made other profitability ratios such as Earnings per share and Return on equity negative. While the company is low on debt with a debt-to-equity ratio of 0.09%, it is not going to cover the shallow revenues.
Multibagger or Mirage
Considering the firm is a small-cap company, it is acceptable that the net profits could be negative due to high reinvestment in the start-up phase. However, it is done with the intention of increasing revenue. In Generdrive PLC’s case, the revenue is declining rapidly.
The optimistic management
Despite “this ultra-decline” in the revenue, the management is still optimistic, Chairman of Genedrive Dr Ian Gilham said that they completed a placing and open offer in October 2021, raising net proceeds of £6.6m. It has extended their cash runway to at least the end of their 2023 financial year, using a forecasting basis that excludes all revenues. Additional material revenues will further extend their runway, as they continuously assess their future funding options and requirements.
Technical Analysis and Prediction of GDR Stock Price
The GDR stock price is going through a challenging phase. The trend is negative, while the only deviations are shadows of candles. It means that the bulls couldn’t make any substantial efforts to reverse it. The current trading price is £9.42, already at the last support of £9.5. The 50-Day EMA price is £11.7 while the 150-Day EMA is £15.3.
The trend line is just above the current price. Therefore, the bulls must push the price soon to reverse the trend. If the bulls reclaim this support level, the next target price for GDR stock price will be the immediate resistance of £19.98.
Conclusion
Genedrive PLC (LON: GDR) is performing poorly on a fundamental basis. Despite being a small-cap stock and a 100% reinvestment rate, the firm cannot grow its revenue. The GDR stock price is downtrend and might break the last resistance. The management is looking optimistic, but investment decisions should be taken after a significant turnaround point.
Technical Levels
Support: £9.5
Resistance: £19.9, and £25.8
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets or stocks comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
