Skip to content

Here’s Why MyHealthChecked (MHC) Shares Fell 19.3% Despite Lower H1 Losses

Simon Mugo trader
Updated 29 Sep 2021

MyHealthChecked PLC (LON: MHC) shares fell 19.3% after releasing its H1 2021 results, where it reported a loss of £199,670 compared to the -£1,171,359 loss reported in a similar period.

Investors disregarded the lower losses as the home-testing healthcare company’s shares fell heavily at the open in what can be termed as a market overreaction given the report’s positive highlights.

For instance, MHC signed two new commercial contracts with Boots UK Limited to supply COVID-19 PCR test kits and complimentary laboratory services.

The company also won a new contract with AAH Pharmaceuticals Limited (Lloyds Pharmacy) to supply COVID-19 PCR test kits and complimentary laboratory services.

Furthermore, MyHealthChecked reported strong trading results in Q3, having generated £8.5 million in revenues and being on track to generate at least £1.4 million in gross profits, yet its shares still sold off heavily.

MHC generated £3,274,145 in revenues during the six months compared to £12,707 in a similar period last year. Finally, the company had £2,214,496 in cash as of 30 June 2021 after raising £3.4 million via a share placement in February 2021.

MyHealthChecked shares have fallen heavily from the April 12 high of 7.44p despite excellent fundamentals. Investors keep anticipating falling demand for its PCR test kits as the UK and global COVID-19 vaccination rates keep rising.

The company recently reassured investors that it expects demand for its PCR test kits to remain high despite the Briitish government’s recent changes to the OCOVID-19 testing associated with international travel.

Only time will tell whether MHC shares can rally back up to their past highs in future.

*This is not investment advice.

MyHealthChecked share price.

IG chart of MyHealthChecked share price 29-09-2021

MyHealthChecked shares plunged 19.31% to trade at 2.34p, falling from Tuesday’s closing price of 2.90p.

Should you invest in MyHealthChecked shares?

MyHealthChecked 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 MHC shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading