Although the present Government would apparently not know a COVID test from a driving test, stocks in the COVID space enjoyed a solid start to the week as the case numbers soar. The highlight of the day was Genedrive (GDR) as it rose 27%, with investors betting that its non-lab based test would logically be the most in demand / most likely to win orders to address a backlog of tests in the hundreds of thousands. The speculative part of the whole diagnostic Gold Rush is which particular COVID testing horse or horses will win? Investors are betting on the right decisions being made. This despite the way so far during the authorities have demonstrated all the expertise of a drunk, blindfolded sniper. Other COVID test plays like Braveheart (BRH) and Omega Diagnostics (ODX) also sported hefty gains.
Catenae Innovation (CTEA) celebrated Rule Of Six Day with a 16% rise to 3.6p, as traders took the view that it will be a matter of when and not if its blockchain based app will be called into service via a significant order, given that it can securely store individuals’ COVID status. Indeed, it may be that its Cov-ID electronic passport could find itself more in demand in the private corporates initially, than in the public sector.
Some of the day’s COVID pixie dust even fell onto internet of things specialist Tern (TERN), as the tech company rebounded 8%. It has been one of the few stocks in its space not to have delivered a significant rally since the pandemic hit in March. However, last week’s £112,000 modem order from a satellite operator seems to have reminded the market that not only is its Wyld Networks track and trace technology being tested by the Scottish NHS, but if it gets the thumbs up could be a significant contributor in enabling social distancing and crowd control.
Shares of Bezant Resources (BZT) rose another 20%, effectively doubling from last month’s lows and the £625,000 placing price. The funds had been raised to fund fresh drilling at the group’s Copper – Gold Gorob-Vendome deposit in Namibia. Given that we are in an ongoing bull run in Gold, and Copper is rising on an almost daily basis, the rise in the share price is reflecting renewed investor interest as traders look to capitalise on stocks which are playing catch up on the rally in the mining sector.
Chariot Oil & Gas (CHAR) became another stock to hit a rather ambitious near term technical target, in this case 4.5p intraday, even though on the face of its sector is rather out of fashion. The shares have nearly tripled since the beginning of the month, and were up 27% on the day. Momentum has been built by traders looking forward to what the new CEO can do, and continuing to celebrate a significant upgrade of the company’s Moroccan asset last week. There was also talk that a farm-in announcement could be forthcoming by the end of the year.
Perhaps not too surprisingly, Alba Mineral Resources (ALBA) continued its recent share price run with a 26%, off the back of a weekend BBC Wales report in the manner of “there’s gold in them there hills.” Indeed, the fundamental driver was the prospect of finding more gold / fresh veins off the back of new drilling results, in the run up to the company re-opening the Clogau St David gold mine in Gwynedd.
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