Inspired (LON: INSE) shares are variously listed as being up 850%, up 1,000% and in reality they're down about 5%. This is also a series of price moves that really doesn't mean anything very much. There is a difference here between any purely nominal price move and a real one, that's true. But then it's also true that the real price move isn't of any great interest either. That's just the way it goes in thinly traded stock we're afraid.
The 1,000% leap is explained by this: “The proposed consolidation of the Company's existing ordinary shares of £0.00125 ("Existing Ordinary Shares"), such that every 10 Existing Ordinary Shares will be consolidated into one new ordinary share of £0.0125 each ("New Ordinary Shares") ("the Consolidation"), was approved by shareholders pursuant to resolution 11 at the AGM.” That's therefore an entirely nominal price change and is of no great interest to anyone very much.
However, there's also a real price change here.
Inspired share price from London Stock Exchange
That real price change is about a 5% real decline. But even that's not really important. One reason is that that price change is still within the spread of the stock. So it's not something that it's possible to profit from. The other is that it seems to be based upon just the one trade. Which means that a trade was done at the spread - possibly even inside it. But if there's only the one recorded trade then the last recorded price is going to be to one end or other of that spread. That is, real prices could stay absolutely static but just because of the way the exchange averages trade prices a single trade - if it remains a single trade - could make it look like the price is moving. It's exactly this which makes Uru Metals seem to bounce 50% a day - and also make Uru a share you definitively should not be trying to trade.
As to the 1,000% price change, that's purely fashion. Some in London still think that a share price “should be” in the £1 to £10 range. So, to get into that range change the number of shares in issue. That's all that is.
It's also worth pointing out that Inspired (LON: INSE) is absolutely nothing at all to do with Inspired (NASDAQ: INSE). Yes, same corporate name, same ticker on different markets, and really, no connection between them at all. So don't go thinking the American stock is going to jump 1000%.
