Genetic Technologies Limited soars 30%: Here's why

Highly speculative Genetic Technologies Limited (ASX:GTG) could be one to watch

| More on:
a woman

You鈥檙e reading a free article with opinions that may differ from The Motley Fool鈥檚 Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Genetic Technologies Limited (ASX: GTG) ("GTL") has seen its share price soar another 30% today, after its ADR shares on NASDAQ surged 8% earlier this week and 36% overnight.

ADRs or American Depositary Receipts聽are a security that trade on US exchanges聽and represent shares traded on other stock exchanges. In Genetic Technologies' case, 1 ADR is the equivalent of 150 GTL shares traded on the ASX.

Genetic Technologies specialises in providing genetic tests, including those addressing various aspects of cancer development, progression and management. In October 2014, the company announced the US launch of BREVAGenplus, an easy-to-use test for breast cancer.

In a statement to the ASX, after receiving a speeding ticket yesterday, Genetic Technologies pointed to its recent announcement that up to 6 new breast diagnosis / treatment centres are expected to be offering BREVAGenplus to their at-risk patients in January to March 2015. But, the company says this will only impact on sales results in the second half of this calendar year.

In the past month, shares in GTL have climbed 240%, including rising 100% following the announcement mentioned above. More centres are expected to follow later this year, and as a result Genetic Technologies says it "expects sales growth to accelerate in the second half of this year and beyond".

The company recently changed its strategy to focus on large comprehensive breast treatment and imaging centres, which have a longer sales cycle, but higher potential.

Genetic Technologies is still looking to raise capital to fund the development of BREVAGenplus, which could see shares issued at a substantial discount to the current price.

While still speculative, Foolish investors may want to keep their eye on Genetic Technologies, given not only the prevalence of breast cancer, but also the recommended medical testing to identify the cancers before they become a major problem.

Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter聽@TMFKinga

More on 鈴革笍 Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
鈴革笍 Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
鈴革笍 Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more

asx investor daydreaming about US shares
鈴革笍 How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more

鈴革笍 Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more