I interpreted this part to mean that Nightingale’s risk test cannot yet demonstrate the causal effect of changes in certain lifestyle factors on changes in risk level, even though it can assess overall whether the risk level has changed. In itself, there are already proven effective interventions, and their impact does not need to be specifically proven by Nightingale’s risk test for them to be implemented.
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Good that it got published, the critical comments were quite natural, and mainly the peer reviewers have now advised (from the author’s perspective, commanded) to stay within the limits of interpretation that the research design allows. Something may seem useful, but if it hasn’t been studied in practical work, it cannot be prematurely declared a functional tool. And authors always emphasize the benefits and implementation possibilities of their research; Nature doesn’t publish tinkering. Now, the need to remain objective has been highlighted due to significant affiliations.
The fact that a lot of modification is needed in peer review to get results published in Nature Communications is no disaster; I’d cut off a finger if a reviewer from there suggested it.
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This might be good to know for those trading the stock; I haven’t been following it recently, but hasn’t the trading been quite solid lately? Apparently not, at least in the company’s own opinion!?
Nightingale Health Oyj (“Nightingale Health”) and Lago Kapital Oy (“Lago”) have signed a market-making agreement that fulfills the requirements for Liquidity Providing (LP) activities on Nasdaq First North Growth Market.
According to the agreement, Lago will provide bid and ask offers for Nightingale Health’s share such that the maximum allowed spread between the bid and ask offers is 3% calculated from the bid offer. The offers will include a minimum share volume equivalent to 3,000 euros.
Lago commits to providing bid and ask offers for Nightingale Health’s share in the Exchange’s trading system on every exchange day for at least 85% of the continuous trading time.
The market-making agreement will commence on December 19, 2024. The agreement is valid for a fixed term of three months and will thereafter continue with a one-month notice period.
The market-making aims to increase the liquidity of the share and reduce the volatility of the share price.
To support the market-making, Cor Group Oy will provide Lago with a share loan of 10,000 Nightingale Health shares.
In the last paragraph of the original announcement, one ‘a’ letter is missing from the word “markkinatakauksen” (added, editor’s note. 
)
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Interesting (in my opinion) announcement.
Did Olli lend 10K shares to a short seller, or what is usually the case with something like this?
I haven’t encountered such a stock exchange release before.
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You’d think it was lent to Lago Kapital. Market making trading starter pack? 
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Yeah, that would make more sense as an explanation.
It would be quite a high risk tolerance (without insider information) to bet on a share price drop with a maximum profit of just under 30K, when at the same time one could lose infinitely. Or at least to the edge of the stratosphere.
The only thing that remains puzzling is why the company shouldn’t handle such share loans with shares it holds, instead of individual owners?
The company even has permission to buy back its own shares up to 10% of the total share capital, so it can’t be due to the company not holding its own shares?
Which brings up another thought. Despite the share price drop, Nightingale’s management still doesn’t see the share price as attractive. Not a single announcement of own share purchases has been heard.
Perhaps that authorization is for some (uncertain but possibly future) ownership arrangement?
In a company at a more mature stage of development, I could well agree with this, but in the case of Nightingale and other early-stage companies, the situation is a bit different.
As a rule, it’s not advisable to buy back shares as long as the business doesn’t generate cash flow, or if the company isn’t highly confident that cash flow positivity can be achieved with limited cash.
Cash is needed to finance growth, and the most detrimental option for shareholder value would be to be forced to issue new shares from a weak position (e.g., if growth is delayed) as cash runs out, thereby diluting existing shareholders into a minority. From the shareholders’ perspective, eliminating this dilution risk is such a compelling reason to hold onto cash, regardless of the share price, that I don’t believe the company should even consider share repurchases yet.
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Exactly. The company has previously had the authority to buy back its own shares, but it has not been used.
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Thanks for the good answer @Antti_Luiro !
That’s why I outlined the end of my message as follows:
Or for what, as an analyst, do you think that authorization to buy 10% of the entire share capital is needed at this stage?
Or rather, since you don’t see any reason for the company to even consider buying back its own shares, why on earth has such an authorization been sought?
Artificial pumping of the share price by “reporting” that preparations are being made for share buybacks, even though there is no real intention to do so?
Could there be another reason? What?
Edit. Order of writing corrected. Final question rephrased.
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Usually, authorization for share repurchases is sought from the general meeting as a precaution; there’s no harm in it, and even if there’s no immediate need in mind at the time of seeking authorization, it gives the company room to act if the situation changes. For example, if the business were to grow rapidly and move towards cash flow positivity, the cash protection I mentioned would no longer be relevant – though I don’t consider this likely right now.
To a lesser extent, own shares can be acquired for remuneration purposes (in which case this would just be an alternative way to incur personnel costs), or, for example, bought and lent to a liquidity provider (now shares were borrowed from a major owner). For this purpose too, it’s convenient to have the authorization in reserve 
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The share price also reacted a bit:
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How could one create an even more misleading headline for a news story?
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Hopefully they can sell it to Hims & Hers and similar companies, as it would be a perfect fit for personal healthcare.
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Here were three things. In my opinion, in order of importance, they were:
- Nightingale is now able to produce risk predictions adapted to ethnic groups. For this purpose, biobank agreements have been made around the world, and this does something completely different than just biomarkers. This is what they mean when they say “modular architecture”.
- Through adaptation, risk predictions are made more suitable for the partner’s/customer’s business, but also a moat is built. Biomarker measurements can be bought elsewhere, at least a couple of other companies also do NMR analysis, but without the ability for this adaptation enabled by a massive data bank, they cannot replace Nightingale.
- A couple of new risk predictions for very relevant diseases show that the expansion of ICD codes has not just been talk. These just happen over time because research cannot be skipped.
Now, just get that large-scale commercial agreement finalized from around the world. Terveystalo is a relevant player, but it doesn’t convince the international market.
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An interesting announcement indeed. It’s very likely that these risk forecasts can be made much more extensively in the future. I personally see more content in the news than Inderes’ analysis suggested.
The flood of good news has continued for quite a long time now without significant stock price changes. This is partly due to reductions by a few larger players. When something that brings cash flow in layman’s terms appears for the first time, the powder might be dry for an even bigger spurt.
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The stock price won’t change significantly until sales announcements are received. Of course, other news is also positive, but only sales will determine if the stock will ever rise.
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I’m waiting for the listing in the US. There’s volume there for a price increase once NG also publishes information there.
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If we could get a few big names to promote this, it would really put wind in its sails. It’s true that this needs sales. But now, risk forecasts have emerged for diseases that are already significant, not only for the individual but also for the national economy.
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