Genedrive Shares May Have Bottomed After the Earnings Selloff, What’s..

Shares of molecular diagnostics company Genedrive PLC (LON: GDR) seem to have bottomed at the support level shown in the chart below as they have been trading sideways since hitting that level. Can the shares rally higher?

Yes, Genedrive shares are likely to rally higher if the support level continues to hold, which appears very likely. I viewed the massive selloff that followed the release of its H1 earnings results as a major overreaction by investors, but only time will tell.

Investors ignored the positive outlook painted by the molecular diagnostics company’s management team regarding the second half of their financial year, which is likely to be much better than the first half.

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Genedrive is set to benefit from its partnership with Beckman Coulter after securing an order worth £400,000 in February from Beckman. The company also has a distribution partnership with Mountain Horse Solution that gives it access to the US military.

These partnerships are part of the company’s revised business strategy that has shifted its focus from middle and low-income countries to developed countries with predictable product life cycles and existing demand.

The firm’s fundamentals are pretty promising, and it is great to see that the technical perspective supports the bullish case. Long-term traders interested in opening new positions in the company may find the current prices very attractive.

You can read our previous coverage of the company in the articles liked below.

*This is not investment advice.

Genedrive share price.

Genedrive shares appear to have bottomed following the massive decline occasioned by its disappointing H1 earnings results.

Should you invest in Genedrive shares?

Genedrive shares are traded on the London stock exchange’s AIM market (the alternative investment market), which is the submarket specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are Genedrive shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

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