Shares of Ridgecrest PLC (LON: RDGC) rallied 30.1% despite the lack of significant announcements from the cash shell company.
The company’s shares have been trading sideways since I last covered the firm in mid-April when its shares crashed on valuation concerns.
Since then, there has been no significant announcement from the company, which was weighing takeover offers from entities looking to list on the London Stock Exchange.
Today’s rally cannot be attributed to a specific announcement, except that some of its more significant shareholders have been growing their positions led by Mr. & Mrs Edward Spencer. They have raised their stake to 7.09%.
Paul McKillen, another significant shareholder today, announced that he had raised his stake in the company to 3.01%.
Investors interpreted the recent share purchases by existing shareholders as a sign that the company could release some positive news soon.
However, Ridgecrest is yet to make any significant announcement, and the recent moves by significant shareholders are not a guarantee of future events.
Many investors are waiting for the company to issue an update regarding its operations or offers from potential suitors.
From a technical perspective, today’s move could lead to a rally in future, given that the support level outlined in the chart below has been in place since late December.
*This is not investment advice.
Ridgecrest share price.
Ridgecrest shares surged 30.11% to trade at 1.21p, rising from Tuesday’s closing price of 0.93p.
Should you invest in Ridgecrest shares?
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