UPDATED: After a share price spike of over 40% which prompted an NZX probe in January, Rakon shares were settling back down on Wednesday.
On Wednesday Rakon shares [NZX: RAK] were down 4.92% in early afternoon trading to 58c.
The spike in January, where Rakon shares rose 42.5% from 47c to 67c between January 4 and January 27, prompted the NZX to ask Rakon to advise that it continued to comply with the continuous disclosure listing rule, NBR reported.
Rakon advised it was compliant and chairman Bryan Mogridge told the National Business Review that the company had "no clue" as to why the spike occurred, apart from that it perhaps got oversold.
Rakon's share price has declined since January 27, holding at 61c from Febuary 3 to Febuary 7 until Wednesday's slide to 58c.
Rakon's share price over 30 days, from NZX.com
Comments and questions
No surprise really. The share price rocketed up because people thought it had been oversold - in the absence of any news why it should be a good buy, it's come back down again.
Those who can read technical analysis charts will have made some nice pocket money if they were prepared to bet on Rakon recently. (Not I)
58c is not even close to the pre-spike low of 47c. According to the maths i learnt at school, 58c is 23% higher than 47c. "Rakon falls half way back to earth" perhaps?
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