PropThink: Genetic Technologies' Wednesday Gains Unsustainable, Declining Without Momentum

RELATED QUOTES

SymbolPriceChange
GENE1.32-0.03

The Australian diagnostics company Genetic Technologies (NASDAQ:GENE - News)(ASX:GTG.AX - News) is giving up gains from Wednesday, down 6% on the day to $3.48. The middle of the week saw immense momentum on the stock from traders, driving share price from $3.18 to $4.20 before beginning a descent that lasted through Thursday and into this morning. Gains on Wednesday were triggered when the Australian banking firm Lodge Partners initiated coverage of Genetic Technologies with a 'Buy' rating, followed by news of a patent infringement suit from GENE against the Reproductive Genetics Institute. GENE markets BREVAgen, a diagnostic tool for determining genetic predisposition to breast cancer in women and is the exclusive marketer of Rosetta Genomics' (NASDAQ:ROSG - News) miRview set of assays in Australia, New Zealand, and Singapore. Genetic Technologies had losses of $1.15 per share in fiscal 2012 - ended June 30 - but expects to improve revenue through sales of BREVAgen, saying that market penetration so far is in-line with similar products; the assay is now available in 48 states. GENE is beginning to even out as trader involvement dissipates and is trading on the low end of its 52-week range. Investor chatter points to Roche's (OTC:RHHBY - News) Investor Day on the 5th as a catalyst for companies in the field of personalized medicine, like Genetic Technologies, however, this kind of trade is very speculative. PropThink identified another company that will benefit from Roche's conference next week, however, and that report on Halozyme Therapeutics (NASDAQ:HALO - News) is availablehere.

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