REDC finishes first week up very slightly
Repower Energy [REDC 5.02 ?0.4%; 15% avgVol], the PSE’s newest stock and a member of the growing MB Power Generation Index, posted a very slight 0.4% gain over its first week of trading. As a first-week return, that’s right in the middle of the pack going all the way back to RL Commercial REIT [RCR 5.32 ?2.6%; 240% avgVol] back in September of 2021. REDC had a first-day turnover of about 4.5 million shares, or 2.2% of its public float. The stock has not yet traded below its IPO offer price.
MB BOTTOM-LINE: So far, REDC looks like it’s progressing the most like RCR. REDC has 2.2% 1st-day turnover and a 0.4% 1st-week gain, while RCR had a 2.1% 1st-day float turnover and a flat first week. In case you don’t like me using a REIT as a comparison, the next-best match from the straight equity space is actually Upson [UPSON 2.13 ?0.5%; 4% avgVol], which had a 2.6% 1st-day turnover and a 2.5% 1st-week gain. In UPSON’s case, its market price closed below its IPO offer by the end of its 2nd week. But is this a death sentence for REDC? Not necessarily! UPSON’s price really dipped quite a bit in its second and third weeks, but by the fourth week, it had recovered back up to the IPO price. Sure, it’s about 10% below that price now, but I’m just saying: REDC isn’t on a straight-line path to a massive drop. Let’s see what happens this week! Very curious to see how the stabilization fund will behave if the price drops.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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