"It's in your genes After yesterday's big move, Genetic Technologies requested that its shares not trade on the markets as it considers raising capital. Back in May, it received approval to manufacture a breast-cancer test for women at moderate risk of contracting the disease, meaning it would be able to sell the test in the United States. It would be moving into a potential $500 million market with no direct competitors. It says the halt in trading should last no longer than Thursday.
Genetic Technologies is also the exclusive licensee of Myriad Genetics' (Nasdaq: MYGN ) BRCA patents in Australia. BRCA1 and BRCA2 are the genes that indicate breast-cancer susceptibility.
Is there good news to be announced, since the company is looking to raise capital, which could indicate a big sales push? Or is it bad news, as there is a lot of litigation that's arisen from a court ruling that companies can't patent isolated DNA sequences since they occur in nature? Sometime between now and the lifting on the trading halt, Genetic Technologies will clarify things. Until then it is speculation.
I'm leaning toward the former, though investors generally don't much care for the biotech's prospects. Fewer than 30% of the CAPS members rating Genetic Technologies think it can beat the broad indexes, but you can add it to your watchlist to keep tabs on whatever developments might crop up as a result of this move."
good news or not, it was leaked so is already priced in..if the news was as great as many believe it wouldnt have peaked midday and began a slow decline. even with good news this is gonna drop on open.besides, fear is a powerful motivator..when this stock opens many will take their profits till the situation stabilizes