Key points:
- Powerhouse Energy shares rallied 139% in the past three days.
- Investors were reacting positively to its latest update.
- Should you buy PHE shares? Read on to find out.
The Powerhouse Energy Group PLC (LON: PHE) share price has risen 139% over the past three days after the company issued an update on the progress towards forming the special purpose company that will develop and operate the Protos Plastics Park.
PHE noted that it expects to finalise the deal by the end of the quarter and would update investors once the agreement is finalised and operational. Investors cheered the move triggering a rally in PHE shares that kicked off on Friday and was still going today.
Also read: Five Best Green Energy Stocks In 2022.
Powerhouse Energy and Peel NRE are still working on the details that will be crucial to the project’s success, including getting firm construction costs for the project, identifying the right contractors, securing long-term supplies of feedstock and the necessary funding.
Investors cheered the announcement, which indicated that the two firms were much closer to kickstarting the project than they had ever been in the past. As a result, investors have been buying Powerhouse Energy’s shares, fueling the current rally.
At the time, Powerhouse Energy revealed that it would be making changes to its management board, a move welcomed by investors, with the current Acting Chairman and CEO, Keith Riley, planning to step down from his interim chairman role.
PHE is also considering moving its headquarters to a new location since the University of Chester plans to develop the Thornton site that currently houses its HQ. The company is actively looking for a new site where it will build a Global Technology and Innovation Centre.
Powerhouse Energy’s new headquarters will allow the company to showcase its technologies and keep developing its capabilities. The firm is currently negotiating for a new site and will update shareholders once there is tangible progress.
The three-day rally in PHE shares indicates that investors have confidence in the company’s plans. So, should you buy PHE shares at current prices? Unfortunately, the short answer is no. You should never chase a stock higher since parabolic rallies are usually followed by significant pullbacks.
*This is not investment advice.
Powerhouse Energy share price.
Powerhouse Energy shares have rallied 139.59% in the past week to trade at 2.094p, rising from Friday’s opening price of 0.874p.