LungLife AI (LON: LLAI) shares have dropped 40% in London this morning. There's no particular, or at least no particular and obvious, reason why they should have done. Quite the contrary actually, the latest news from the company was that their lung cancer detection test seems to work rather well. So why this should cause a near halving of the shares is difficult to understand. The result, we think, comes from the fact that trade in LLAI is simply very thin. So, even a modest change in buying or selling volume will have this sort of influence on the stock. We would not go so far as to say that LungLife is therefore a definite buy. But we would suggest that further investigation to see if there's a real reason here could be worthwhile. Because if it's just that flow of selling causing this then it's entirely possible to assume a recovery in the near future.
But that absence of other news does need to be confirmed. Because all we can see is the weight of selling in a very thinly traded stock. The market maker is deliberately pulling the share price down in order to curtail any sales.
LungLife AI share price from London Stock Exchange
LungLife AI share trades from London Stock Exchange
These are all offbook trades going through a market maker. We're seeing a very modest amount of selling. But that's enough to get the marketmaker dropping prices.
As we say, there might be some news out there that we can't see. But we have looked and the last thing the company has told anyone is this release about good results.
We suggest - suggest - therefore that this is a price change that will fade away soon enough.
