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• Genedrive stock price prediction:  the share price of GDR is near its all-time low with the last support in sight, will it break?
• The company’s sales are down to 600% in the last 6 years, what does its balance sheet and Cash flow statement say?
• The price is near to breaking its immediate resistance with 50 EMA on top, see what next

About the company: A beginners guide.

Genedrive PLC, founded in 2007, is engaged in the business of development of diseases and drug diagnosis. It operates in the Diagnostics segment and is responsible for the commercialization of the Genedrive Point of Need molecular testing platform. The company has a market capitalization of GBX 12.7M and is headquartered in Manchester United. The company is led by the CEO, David Budd

Genedrive PLC Key Financial Highlights of last year’s annual report.

The revenue of Genedrive as per its last annual report is: GBX 49k which is a decline of 92% year on year (YoY)

The company is losing in operations with a loss of over GBX 5.62M as per its last annual report 

The company is net income negative of -GBX 4.67M as per its last annual report 

The earnings per share of the company and the price-to-earnings ratio are both negative as per the net income 

The Price to sales ratio (P/S) ratio is 303.07 which means that the share price of the firm is 303 times more expensive than its sales per share.’

The Return on equity is at the negative value of -101%

The operating margin of Genedrive is -11,460%

The net margin is reported as -9,540% as per its last annual report 

The company is low on debt with the debt to equity ratio of 0.09% as per trailing twelve months (TTM)

Why are Genedrive PLC shares falling?

As we saw in some financial highlights of the last annual report, the company is performing very poorly in terms of margins, ratios, and numbers, the case has been with Genedrive for the past 7 years, The revenue has declined more than 600%, from over GBX 3M in 2016 to just GBX 49k in 2022 this has seen reflecting in the share graphs as well.

The balance sheet of the company is showing that the company has sold more than 50%  of its Investments and cash assets in 2021. This was done to pay its long-term debt. This was a very positive sign for the company but the spotlight from the investors was more towards its declining revenues and postings of continuous losses.

The cash flow statement showed that the company was never cash positive, as it is burning in operations, this also resulted in the net cash being negative. However, the percentage of the losses per year is decreasing. 

All of these factors combined caused the share price to fall consistently showing no signs of reversal in the near future until a big financial change is declared by the company.

Technical analysis and insights of Genedrive PLC.

Currently, the Genedrive share price has just broken its major support and is seen in a slight downtrend at GBX 12.68 as of this writing. The stock is between some supports and resistances, while the indicators are also giving some insights for the near future 

Support: The first and Immediate support for Genedrive share price is standing near its all-time low level of GBX 7.9. This support level was created between the likes of 2020 when the stock fell in the “covid correction”. This level has been also tested recently during November 2022. 

The 2nd support is a round-off support made on GBX 5.00 and is likely to be psychological support as it has no volume backings. This zone is usually a risk-averse zone and the holding is generally advised to be avoided.

Resistance: The first resistance which is the immediate resistance is at the level of GBX 16.32 which is the recently broken support, back in mid-July 2023.

The second resistance is at the level of GBX 32.15, this level is having a good level of volume and a wide supply zone.

MACD: The MACD chart is well below its neural level. Although despite the downtrend, the signal line has just crossed the MACD line to go to its bottom, this has happened as Genedrive share price came near its demand zone creating a short-term uptrend. As of this writing, the MACD line is at -0.883 and the Signal line is at -800.

RSI: In the Relative strength index chart, the SMA line has just crossed the RSI line when both lines bounced off the level of 30 back on 1st August this is indicating a bullish trend in the short term as the RSI is near its oversold zone. The current levels are the RSI line at 39 and the SMA line at 33

EMAs: The EMAs had a crossover back in June 2023 where the 200 EMA came on the top of 50 EMA, this was a result of the support being broken and the price coming in bearish sentiment. Right now the gap between the two is widening, 

The 50 EMA is at the level of GBX 15.68 and the 200 EMA is at the price level of GBX 19.16

Conclusion

Since the company is consistently declining its sales value and showing no chance of revival, there is no reason for a retail investor to invest in the medium to long term. 

The traders have to wait till the price gives some action when it’s near its 50 EMA, the levels are not very different. If the price bounces off its 50 EMA it is very likely to touch its immediate resistance, but since the volume levels are strong some spike up is expected.

If the price rises above its 50 EMA as MACD is confirming then Genedrive shares will have to cross a wide zone of resistance 1. It is likely to happen as the RSI has also given a bullish signal as the Genedrive share price reached near its demand zone.

Technicals

Support: GBX 7.92, GBX 5.00

Resistance: GBX 16.32, GBX 32.15

RSI: GBX 13.10

50 EMA: GBX 15.68

200 EMA: GBX 19.16

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 comes with a risk of financial loss.