In previous blogs I have indicated the Daniel Stewart share price will rise.
- 23rd May – sp 1.52p – share has potential upside (see here).
- 26th May – sp 1.82p – share price is going to hit 2p (see here).
- 9th June – so 2.42p – demand indicate sp heading North ( see here).
- 12th June – sp 2.57p – share price will continue to head towards 3p (see here)
What however happened on the 15th and 16th June 2015?
We had on the 15th information from Quob Park Estates revising the target for DAN shares from 4p to 10p. This revision based mainly on additional work Quob Park Estates intend to provide DAN. A positive announcement for those invested in DAN and the share price on the morning of the 16th June headed North.
Later in the morning of the 16th June we then had an RNS from DAN stating they knew of no reason why the share price was increasing. This resulted in the share price falling to below the previous day’s close. Share price eventually closed 10%+ higher.
This raises a few questions:
1. Why is a major shareholder promoting an increase in the share price whilst the DAN BOD appear to be doing the opposite?
2. Why are Quob Park Estates making announcements that will probably result in the sp increasing when they have stated they want to increase their share holding?
3. You would have thought Quob park Estates (major shareholder) and DAN would be aligned with regard to their communications to the market.
The share price can not realistically continue its rise without news from DAN regarding new contracts etc. Their RNS today would indicate this isn’t going to happen in the near future. Unless DAN are not aware how much work Quob Park Estates are going to put their way.
Was the RNS issued today just to prepare investors with the knowledge that the £1m placing will be priced at a discount to the current market price? What happens to the share price if these shares end up being traded?
Based on the uncertainty as to what’s happening it looks like the share price is going to fluctuate wildly around this level whilst we await clarification / news.