Some traders are still trying to regroup from the late February dip in small caps. Others, perhaps new to the market, are not able to understand why making money is not as easy as it was from October – February. At least to start this week it was noticeable that there was a recovery in the natural resources space.
One could argue that a good example of this was the 15% share price rise in Union Jack Oil (UJO). This was a surprise given the shift of the company from onshore to offshore, in the form of buying the royalty of a producing North Sea complex of assets. The very positive market reaction was interesting given the way that the investment was only $130,000 and offshore. Indeed, it may have been the case that investors just relieved the company was not talking about Wressle or West Newton, and not playing a development waiting game. Instead, Union Jack is set to accrue up to 16.5% interest on an average annual compound basis. It may very well be the case that via the stock market thumbs up Union Jack is being encouraged to deliver more deals like the one with Cambridge Petroleum Royalties.
One of the more esoteric battles one can see with reference to a new issue / IPO is the tussle there can be between a stock and its opening price. In the case of cybersecurity solutions group Brandshield Systems (BRSD) which specialises in online brand protection and anti-counterfeiting measures, it was noticeable how in the previous week there were several intraday dips to the 20p first day of dealings price. All of this came ahead of the latest 8% share price bounce, something which rather implies a buyer picking their level in the shares and loading up / adding to a position.
Shares of Edtech specialist Dev Clever (DEV) have been one of the stock market’s best performers in recent months, without too much fanfare. However, it was third time lucky for the stock in terms of delivering another all time high in the form of an end of day close above 30p. This was clearly off the back of continued professional investor buying, as well as us being in the run-up Dev’s final results for the year ended 31 October 2020 on Monday, 29 March 2021. This announcement is scheduled to be followed by a virtual capital markets event hosted by CEO Chris Jeffries, for analysts and investors on April 6 2021 to discuss the Company’s growth strategy and future prospects.
Also in the tech space it was the turn of tech investor Pires (PIRI) to do what it says on the tin by investing £250,000 in Polience Limited, a security solution platform company that provides data intelligence to combat crime, terrorism and protect vulnerable people, as part of a £1 million fundraising round. Sure Valley Ventures, in which Pires has an effective overall interest of circa 20%, has invested the remaining £750,000 from Polience’s funding round.
The day was topped and tailed by Omega Diagnostics (ODX), in terms of the two RNS announcement, before and after the stock market close. According to stock market “rules” it could have been the case that it was better to travel than arrive in terms of the Government contracts with rapid test manufacturers. Or it could have been that the £374m value contract – double the market cap of ODX, was enough to blast the share price higher. In the end the former scenario prevailed, although it could still be that the after market RNS provides some fresh momentum for the next trading session, at least early on.
While anyone hoping that the Oilex (OEX) / GSPC saga is finally be coming to a profitable conclusion may have been somewhat frustrated, it appeared that the situation continues to move forward. The company continues to advance discussions with GSPC to acquire GSPC’s 55% participating interest in the Cambay PSC, and working to reach complete these negotiations as soon as possible. Off the back of these comments it would appear that traders have to decide to either be in the stock beforehand, or be resigned to not being able to jump on board whenever the definitive news finally breaks.
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