What are the next moves for this medical cannabis stock?
Share price could triple if company replicates its success overseas.
15th April 2021 08:49
by Alistair Strang from Trends and Targets
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Share price could triple if company replicates its success overseas.
MGC Pharmaceuticals Ltd
MGC Pharma (LSE:MXC) is a relatively new listing on the London Stock Exchange, and offers research and medications derived from cannabis.
MGC is already listed on the Australian exchange, showing a relatively stable history for the last few years. Its website lays out global ambitions, and there's little doubt the listing in London has provoked some interest in the share price’s future.
Currently trading around 3.6p, the share price need only better 4.9p to tick a pretty major box in a tier of calculations which allows price movement to an initial 7.4p. If exceeded, our secondary longer-term calculation works out at 10.5p. Surprisingly, we not if similar logic is applied to their Australian listing, this permits a high at 21 Australian cents (12p).
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At present, we cannot comfortably calculate beyond either secondary level and believe we shall have to revisit the company should such targets make an appearance.
As always, there's a risk of a downside. Currently, it looks possible weakness below 3.4p risks driving the price back to 2.6p. We cannot calculate anything below such a level and would expect a rebound, if such a number ever appears.
Source: Trends and Targets. Past performance is not a guide to future performance
Alistair Strang has led high-profile and 'top secret' software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know 'how it worked' with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
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