Speedy PLC – Slow Share Price Movement
Speedy PLC – Slow Share Price Movement
I have been reading up online and people don’t seem to realise why the share price isn’t moving much even when millions of share are being brought and sold.
The main problem is because of the rights issue. The Company now has over 500 million share in issue and because of this, it will need to probably need to see around 10 million shares being brought + in order to increase the share price through the increase (shift in demand) for shares.
Now there are many factors in which affect the share price. Do a search on my blog or see related blog posts for further explanations.
Speedy Share Price Increase..
The only way we’ll see an increase in share price is because of the following reasons:
- Large buy up of shares, talking around 10 million + to see an increase in price.
- Some good market news directly affecting the hire industry. (Construction news may not shift it up as much as you think as there’s a lag time and other factors in which hire industry will be affected). It will take time to catch up.
- Company News – The biggest shift in price will be any news from the company saying about profit increases etc.
Don’t forget, share prices can go up because of the potential of the company as well as the true value of the company. A company whose book worth is £170m (estimate) will never have a business that’s worth £1billion in share value (market cap) unless there’s potential in that market for the company to do really well. At the end of the year it comes down to profit and dividend.
Investment type – Long Term
Buy/sell/hold – Strong Buy at 34p
