Over the weekend it was supposed to be the case that the UK version of Reddit, Wallstreetbets, Gamestonk, Meme stocks et al, were targeting hapless bank Metro (MTRO). Instead, it would appear that “inadvertently” the stock which has become a hero for the punters is actually COVID-19 diagnostic play, Genedrive (GDR). Indeed, the shares with their consecutive day gains looking to have gone into overdrive – more than tripling since the end of last month. Nevertheless, the now not so balmy army willing the stock higher still appears to have momentum behind them, given that we are still trading in the run up to “planning commercial introduction of the Genedrive kit from mid-February,” according to the RNS of January 28. Shares of Genedrive rose another 8% to 145p.
One of the characteristics of the current small cap bull run which has started on both sides of the Atlantic has been the impact of the “influencers.” Investors, both real and imaginary, can be the flap of butterfly’s wing to get momentum behind a stock. In the case of MGC Pharmaceuticals (MXC), it was not difficult to understand why the stock was in focus, over and above tweeting on the subject by the “Great and The Good” on social media. Here, Turner Pope Investments completed the first medicinal cannabis listing on the Standard Listing Segment of the London Stock Exchange, raising £6.5 million, presumably from the “Great and The Good” among its Rolodex of clients. Shares in MGC rose 15% to 2.75p, versus the 1.475p placing price, meaning that the chosen few in the fundraise were already sitting on a tidy profit. In fact, given the latest Reddit focus on cannabis stocks in the US, and that we are in the run up to a TPI investor presentation on Friday 12 at 10am, it could very well remain a solid week for the stock market debutante.
Rather like the proverbial oil tanker, it would appear that shares of Canadian Overseas Petroleum (COPL) are gradually starting to respond to the ongoing recovery in the crude oil price, the announcement at the start of the week of having paid off the loan related to its strategic restructuring, and the run up to the completion of its giant killer type Atomic Oil & Gas deal. This expectation was enough to like Canadian shares 7%.
One of the better scenarios for a company which is new to the stock market like Tirupati Graphite (TGR) is to maintain investor loyalty and price momentum, with regular, significant newsflow. This was to be seen with the vertically integrated producer as it announced that its group company Tirupati Speciality Graphite Private Limited has been accorded REACH certification for its range of expandable graphite products for marketing and sales into the European Union/ European Economic Area. Shares of Tirupati rose 5%.
Investing group Gunsynd (GUN) was back on the newswires with news of a disposal, in this case its shares in Angold Resources. Indeed, given the tendency of many investment groups to frustrate shareholders by going on and on with their holdings, the proceeds of the sale of £163,000 after costs, was perhaps secondary to the company underlining its ability to be nimble in terms of its hitherto successful strategy.
One of the more fun aspects of the stock market is when a company has to unveil a “speeding ticket” RNS, usually off the back of someone short of the stock bleating. In the best situations any cooling off of the share price only lasts a few days, and the stock is up again. This was the case as far as potential “shell” / RTO situation Marechale Capital (MAC), “an established City of London based corporate finance house, with a focus on the consumer brands, leisure and retail sectors. Of just as much interest in terms of the stock rebounding 16%, was the TR1 revealing that serial entrepreneur Chris Akers has 9.97%.
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