In 2019, 23 stocks have jumped over 100pc in one day. Why and where are they now?
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At Stockhead we are as amazed as our readers when stocks rise by over 100 per cent in a day. But its a more common occurrence than we thought. There have been 23 stocks that have achieved that feat.
The three most common reasons are success, an alliance or an acquisition (either of the company itself or occasionally of someone else).
If you’re a health stock, the best success is with a clinical trial. 2019’s record holder, Orthocell (ASX:OCC), finished May 8 377 per cent higher than the day before. Its CelGro technology helped patients involved in the trial regain sensations in muscles with damaged nerves.
One other achiever of this feat was Alzheimer’s fighter Neuroscientific Biopharmaceuticals (ASX:NSB). While its drug is only at the pre-clinical phase, the trial showed the “largest ever improvement in neurite growth and increased number of active connections between nerve cells”.
If you’re a tech stock, one success might be a client or a client’s clients loving your technology. This happened with FinTech Chain (ASX:FTC) and its partnership with China Merchants Bank, which sent its shares up 133 per cent on April 16.
It goes without saying if you’re a miner, exploration success helps and Predictive Discovery (ASX:PDI) achieved just that last month, gaining 144 per cent. But it is just as much about promises about what is to come as about what has already been found.
However, many hundreds more announcements do not have a similar impact. A more commonly reliable way is an acquisition. This can be of a company or a project. Hylea Metals (ASX:HCO) gained 331 per cent last Monday after announcing it was acquiring a uranium project.
The very next day, Marquee Resources (ASX:MQR) more than doubled after announcing it was getting into rare earths.
But sometimes you just need a ringing endorsement. A handful of tech stocks rose after winning strategic partners. AssetOwl (ASX:AO1) spiked 225 per cent after a deal with real estate group The Agency. 9Spokes (ASX: 9SP) also rose exponentially after sealing a partnership with Microsoft.
Crowd Media Holdings (ASX:CM8) announced several partners at once, including Expedia, N26 and Pasta Garofalo, and the stock rocketed 169 per cent.
However, there were a few stocks that rose without news on the day.
Orthocell’s chief Paul Anderson told Stockhead at the time of the share price rise that “the sky’s the limit”.
But what do shareholders think? Do they keep accumulating or do they run off with their capital gains?
Only one of these stocks does not stand higher than before it spiked. That stock is 333D (ASX:T3D) but while it has not risen further, it has not fallen, still sitting at 0.3c.
Orthocell, 2019’s gold medallist, is currently 277 per cent higher than two months ago.
However it does not hold the crown for “biggest gain since a mammoth one-day rise”. That honour goes to R3D Global (ASX:RD3), which is 660 per cent higher than before March 27.
In fact, across this portfolio of stocks, the average return is 161 per cent. So any thoughts about completely “missing out” may be premature.