What was previously known as Omega Diagnostics is now Cambridge Nutritional Sciences shares, listed on the London Stock Exchange under ticker CNSL. In it’s previous guide, the stock saw some dramatic price moves during the COVID-19 pandemic, with investors scrambling to find the next big stock in the industry.
Looking over the 5 year chart gives some rather unexpected looking peaks, but over recent periods the company has been re-establishing itself.
Who is Cambridge Nutritional Sciences?
Operating out of Alva, Scotland, Cambridge Nutritional Sciences (previously Omega Diagnostics Group Plc) can trace its history back to 1987. It was previously listed on the London Stock Exchange under ticker ODX.
While the company’s focus during the pandemic was capitalising on the Covid opportunities, not all of its business lines are COVID related.
However, the reputation it built as a developer and manufacturer of medical testing equipment led to investors piling into the shares in March 2020. The other services it provides cover food intolerance, allergies, and HIV testing. Some of the ‘traditional’ business lines suffered due to the pandemic, which also helped to take the steam out of lofty expectations for the company during the pandemic.
Where Will the Stock Price Be in the next year?
First things first, the firm does not make a profit. It’s not the only loss-making company in the sector, but it’s essential to approach any stock predictions from that starting position.
The financial realities go some way to explain the excitement about the stock has significantly waned. Trading volumes have fallen away, and those considering buying CNSL might well be looking for that particular metric to pick up considerably before pulling the trigger. The stock’s decline since 2021 needs some kind of a catalyst to be applied if it is to be reversed over a longer period, but as far as short term trends go, there is some bullish momentum building.
Over the past 12 months, CNSL share price has added more than 40%, and since the beginning of 2024 the ascent is even more pronounced, at almost 70%. With a market cap under £10 million, this is a company that is rebuilding, and gathering any sort of institutional coverage is hard to find.
Earnings on 25th July may prove to be the next catalyst, but you would be best served reverting to fundamental analysis when looking for forecasts here.
The last three or so years highlight a topsy-turvy experience. The headline figures don’t make for great reading, with losses before tax leaving many questioning if holding shares is a good idea. The company’s revenues contracted, and it reported, and it reported an underlying loss in its most recent update.
Is The Stock Oversold?
Despite what many may think, the company was more than a COVID stock. It has a long track record and is currently below its pre-pandemic levels.
Where the stock will bottom out is another question.
The uncertainty surrounding the wide range of variables in play means plenty of potential new investors can find at least one reason to steer clear.
The firm has shown that being closely linked to potential pandemic related silver bullets has been both a curse and a blessing. It’s a complicated situation. Even the most ardent fans of the stock would agree that when assessing CNSL, a little patience in the decision-making process is required.
