Price drop a mystery

Dunedin cancer diagnostic company Pacific Edge had no information on why its shares plunged 22% last month, they said following a ''please explain'' request from the New Zealand Stock Exchange this week.

In the wake of numerous upbeat market announcements in recent months, Pacific Edge stock soared in value, but between February 10 and March 10, the stock fell from $1.72 to $1.34.

NZX Market Services market surveillance spokesman Fraser Wyeth wrote to Pacific Edge chief executive David Darling, asking if there was material information held that required release, following the 38c per share, or 22%, price drop.

Mr Darling responded that Pacific Edge did not have any information that was not disclosed to the market.

Craigs Investment Partner broker Peter McIntyre said the NZX request was a ''driving too slow ticket'', given the stock's earlier large gains.

He said share price volatility could be expected, given Pacific Edge had made numerous positive announcements but was yet to see its cashflows ramp up from product sales, or book its maiden profit. Pacific Edge shares were unchanged at $1.44 on low volumes yesterday.

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