Shares in Universal Biosensors (UBI) looks set to retest its 60 cents support as the stock struggles to bounce from this week’s drubbing.
There’s a new theory why the stock is not getting much love even though experts agree that the 10% crash this week to 64 cents puts the medical testing device maker in value territory.
The speculation is that there is a big sell order waiting in the pipe after PFM Cornerstone announced on September 25 that it was undertaking an equal capital reduction on its shares and will transfer 9.3 million shares in Universal Biosensors to its 72 shareholders, which includes Universal Biosensors chairman Andrew Denver and non-executive director Denis Hanley.
That equates to around 5% of the company stock and it is unclear why PFM’s shareholders have elected to do a capital reduction and what their intentions are regarding their holdings.
Denver didn’t reply to questions from Eureka Report at the time of publishing, and the stock is already under pressure on Tuesday’s news that the launch of its coagulation tester it was developing with Siemens would not happen this year as originally planned, but in the first half of next year instead.