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Shares of Quadrise Fuels International Plc (LON: QFI) rallied 25.9% despite the company not making any major announcements except for a retweet of the International Maritime Organisation (IMO)’s recommendations on ships’ carbon footprint.
The company retweeted an analysis of the IMO’s recommended norms on cutting carbon in merchant ships, set to be implemented by October 2022. The IMO has proposed new mandatory rules on how merchant ships should reduce their carbon footprint by 2022.
Quadrise is set to benefit immensely if the rules are adopted and come into effect next year, given that its MSAR® technology produces clean synthetic fuels that could replace the heavy oils used in most bulk shipping vessels.
The company is currently conducting a trial of its MSAR® technology on commercial container vessels that are part of MSC’s global fleet. This project's success would position Quadrise strongly within the shipping industry, translating into massive revenues for the company.
The IMO proposals are set to apply even to old ships built over 20 years ago, which means that many would want to acquire Quadrise’s MSAR® technology to comply with the IMO rules if adopted.
The chart below shows that Quadrise Fuels’ shares trade in a very volatile manner, making them a bad candidate for any short-term trading activity. However, long-term investors could buy and hold the shares in anticipation of the company’s future success.
Quadrise Fuels share price.
Quadrise Fuels’ shares rallied 25.92% to trade at 3.4p, rising from Thursday’s closing price of 2.7p.
Should you invest in Quadrise Fuels shares? Quadrise Fuels 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 Quadrise Fuels shares the best buy? Our stock market analysts regularly review the market and share their picks for high growth companies
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