06/05/2020 - 15:01

Jupiter points finger for share spike

06/05/2020 - 15:01

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Shares in oil junior Jupiter Energy halved today after the company blamed day traders and social media activity for a 100-fold lift in its share price in late April, during which its chairman sold all his stock.

Jupiter produces oil in Kazakhstan.

Shares in oil junior Jupiter Energy halved today after the company blamed day traders and social media activity for a 100-fold lift in its share price in late April, during which its chairman sold all his stock.

Trading in West Perth-based, Kazakhstan-focused Jupiter resumed today after suspension in late April.

Within the space of two days, the company’s share price had lifted from 0.2 cents per share to 15 cents, peaking at more than 30 cents per share.

Trading volumes rose from 2,000 a day to 10 million in that period.

Today, Jupiter shares fell 65 per cent to be 5.3 cents each.

Jupiter chief executive and chairman Geoff Gander sold all his 810,000 shares, earning about $167,000 at an average price of 19 cents.

Responding to an ASX request today, Jupiter’s board said the buying had been undertaken by about 340 investors in small parcels, mostly of less than 10,000 shares.

“It is important to note from the significant movement reports, that the total number of shares settled over the two day period was approximately 6 million shares against a total trading volume of approximately 12.5 million shares,” Jupiter said. 

“This would appear to indicate that 6.5 million shares were bought and then sold within three business days, which is generally an indicator that this buying activity was day trader driven.

“The company believes that its share price increased as a result of a recommendation or recommendations in relation to Jupiter lodged via social media.”

Mr Gander had held his shares for 10 years and was not in a blackout period, the company added.

The Twitter tag for Jupiter shows tweeting about the stock appears to have only commenced after the price rise began.

Jump

On Friday, Subiaco-based technology business Family Insights Group received an ASX price query after its share price rose 76 per cent to 3.7 cents a share in one session.

It had peaked at 5.8 cents per share.

More than 30 million units were traded that day, up from 4,000 the day before.

The company said they were not aware of any reasoning for the trading behaviour, other than changes to consumer behaviour in retailing.

Family Insights had made an announcement spruiking its grocery comparison app frugl the previous day.

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