Proteome Sciences results in big news CJD + Stroke tests
MegRyan - Mon, 01 Jan 01 :
BOLTWORTH,
If I may answer as well as goatherd. There is an element of truth that the graph trend of PRM's price has flattened during the last weeks of 2000, but this was against the back drop of a very fragile, in fact, awful tech market.
Any conclusions from charting are rather like weather forecasting...the further ahead you try and predict the less likely that your forecats will be accurate. It all depends how you want to invest. If you are a day trader you will rely more on charts rather than knowledge of a company...if you're in for a long term investment then the charts are like long term weather forecasts, worthy of note but to be treated with a wide latitude of scepticism. The real price of a share depends on several factors including (not exhaustive); supply & demand, market sentiment and market capitalisation/compared to estimated value (where PRM is clearly severly undervalued compared to other players in the niche such as GTX and OGS).
There will be considerable newsflow from PRM during the next 6 months...this news will reset, consolidate or accelerate any trends, and chart forecasts will have to be corrected accordingly. I wold certainly expect volatility both up and down...but the trend will probably be up. The only bearish factor in the first 6 months of 2001 is if the CJD test does not meet the surveillance unit expectations. This is a possibility. But against that, you need to realise that the CJD part of PRM, although of great media interest, is not PRM's main asset. The stroke test, organ rejection, diabetes markers and Intronn are the real pearls.
If you hold PRM for 4 years you will make a big killing IMHO (expect £5 plus per share) and you will avoid nearly all the CGT (it will only be 10%)
With the share being tipped in the papers the chartist may well be right that the share will be a cheaper buy after tuesday as the MM's often raise the price on the nearest trading day after such news. What is interesting is that by implication the chartists suggests he might buy if the price falls from its current level.
