Shares of Powerhouse Energy Group PLC (LON: PHE) rallied 13.3% despite the company not making any major announcements in the recent past as investor interest in the company that turns waste products into hydrogen energy increased.
The company’s last major announcement was regarding the placement of 181.8 million shares at 5.5p On January 14 to raise £10 million with the White Family, the firm’s largest shareholders buying £2.6 million worth of the issued shares.
Interestingly, Powerhouse Energy’s shares did not fall below 6.5p after the share placement, indicating that investors did think the share issuance had significantly diluted their current shareholding in the company.
The company’s shares have since formed a 3p trading range, which has been in place since early January. A closer look at the price chart indicates that we’ve had more bearish days than bullish ones, which means that the bears have a slight edge.
However, the bulls have defended the lower levels of the trading range fiercely, which is expected to continue. I would not buy or sell the firm’s stock at current prices simply because the price is right in the middle of the range.
I shall be looking to buy any pullbacks to the bottom of the range and sell at or near the top until the range pattern is broken and a new trend begins.*
I’m long-term bullish on Powerhouse energy given the revolutionary nature of its waste to hydrogen conversion technology known as DMG, especially if the company manages to deliver the Protos plant providing that its technology works in real life.
Powerhouse Energy share price.
Powerhouse Energy shares surged 13.33% to trade at 8.5p after rallying from Wednesday’s closing price of 7.5p.
Should you invest in PowerHouse Energy shares? PowerHouse Energy shares are traded on the AIM market of the London stock exchange (the alternative investment market) which is the sub market specifically for smaller companies. AIM stocks are attractive to investors as they have tax advantages and smaller companies have the potential to benefit from rapid growth. But are PowerHouse Energy shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies