BPO 0.00% 0.3¢ bioprospect limited

today's events

  1. 3,749 Posts.
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    Hi all

    Very interesting day for BPO is a huge understatement!! Talk about a spike in volume!!

    This is what I think, firstly from a fundamental perspective... Sure it was a positive announcement, I mean there was no bad news, but there wasnt anything REALLY positive was there. Only that six species of BPO's library are bing further investigated by Apath. Nothing more, nothing less. Sure Apath are looking at a Hep C product, but this is very very far away from potentially being in a position to be commercialised.

    There was no mention of any $$ for BPO, and alot more would need to happen IMO before we see any revenues from the Apath collab. They say Apath are pleased with the number of hits... 6 out of how many?? Still on the positive side, it does mean that BPO have 6 chances for success with this collaboration.

    That brings me to the main thought for the day... why would well over 20 million shares change hands based on an announcement of very little substance. There was no deal and no cash for the company. Interesting when you really think about the announcement, and what it really means for the company... not much in the short term.

    The logical question then is why was volume so ridiculously high? Could it be that the market was starved for BPO news they ran the price up? Doubt it, as it has already risen from 5c. Could it be that the market is liking what they see with this announcement? Sure its good news, but its taken 8 months since the collaboration was announced to get this far, surely the testing will take longer and be more focused from now on, so we could be another 8-12 months for turther news.. so I doubt it. Or could it be that there is more news coming out of the company very soon? Now I dont like to speculate about what the company is going to release, because frankly I dont know. But one would think based on massive volume that Qcide results will come out soon. It has been 10 months since the deal was announced with Neudorff, and July last year that the Sumitomo deal was announced. Not only are there trial results due, but you still have Japanese company commercialisation discussions, plus the purchase of a cashflow positive company. Not to mention an update regarding the termicide product, and licencing rights.

    So bottom line, with 20 million + shares traded, it seems there is more to this than what has currently transpired.

    From a technical perspective, after it broke through 13.5 I thought how high can this go??? It hit 15 and came back down, tried to break it a couple more times but there was not enough strength to overcome the huge amount of sellers. Interesting that the weighted average price of the day is 14c, so there are on average 20+ million shares that were bought above the current close. A 13.5c close is ok, mainly because it is the highest close in this current run, and it has also closed on the prior resistance mark reached last week.

    Tomorrow should be interesting, as without an announcement volume will no doubt be considerably less. If we close down, we should close above 12.5 and re-establish a support level there. If we can close higher, it will go along way to establishing a good support level at 13.5 (prior resistance, once broken, usually turns into support). Should be interesting..

    From a longer-term weekly perspective, we have a high of 15c which will hopefully be re-tested towards the end of the week. At the moment we have a small white candle with long shadows. If the close on friday can be near the highs of the week, it will create another long white candle and reinforce the strength of the upmove.

    Just my thoughts...
 
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