Omega Diagnostics Share Price Forecast July 2021 – Time to Buy ODX?
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Omega Diagnostics (LSE: ODX) is in the news lately after the company filed to the U.S. FDA requesting emergency use authorization(EUA). Investors are interested in the medical diagnostics company, which normally focuses on infectious diseases, CD4 and food intolerance.
Omega Diagnostics PLC – Technical Analysis
According to the financial statement released by Omega Diagnostics PLC, the company’s market cap is at £94.056 million with total assets worth £28.448 million. Revenue for 2020 was at £9.82 million, with a profit margin of -69.54%. This is a sharp decline from 2019 where the company’s net income was £72.44K. ODX shares closed on July 12th at £47.50 with a downtrend of -7.77%.
When we look at the company’s technical information, we find that moving averages such as Volume Weighted Moving Average (20)(55.39), Hull Moving Average (9)(49.41), Exponential Moving Average (100)(66.96) and Simple Moving Average (100)(74.43) are pointing towards selling. On the other hand, Omega Diagnostics PLC’s oscillators such as Stochastic RSI Fast (3, 3, 14, 14)(26.40), Williams Percent Range (14)(−96.15), Bull Bear Power(−7.91) and Ultimate Oscillator (7, 14, 28)(32.01) are pointing towards neutral.
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Recent Developments
Omega Diagnostics PLC is at the final stages of preparing a submission to the U.S. FDA for both its Global Access Diagnostics and Visitect brands. The company signed a contract with the Department of Health and Social Care (DHSC) on February 11th for developing a Covid-19 antigen test. ODX shares have shed almost 15% since the beginning of this year but saw an increase of 3.7% when the company’s submission was confirmed. ODX shares rose to £65 in March 2020 which was 85% higher than the previous year’s average. However, ODX shares have been volatile in 2021, falling from 98 to 52 points in a matter of 3 months.
Should You Buy ODX Shares?
Investors should look at the company’s key metrics before they decide whether to pick up ODX shares in July. As per its September 2020 financial sheet, the company had no debt and cash on hand of £7 million. The company’s cash burn increased by 251% in the last year, which investors should note.
Many investors are scrutinizing Omega Diagnostics PLC’s future capital requirements because its cash burn is increasing while its revenue is dropping. The company’s cash burn of almost £3.5 million accounts for 3% of its total market cap. The company can easily fund another year of expansion by issuing additional shares given the low percentage. More news regarding the test results and future application of its products are need before investors can confidently add ODX shares to their wishlist.
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