Saturday, June 15, 2024


Dhaka Tribune

Caspian Sunrise (LON: CASP) up 27% on relisting - so that speculation worked then

As we suggested could happen Caspian has regained near all its losses on relisting

Update : 07 Jul 2023, 03:26 PM

Caspian Sunrise (LON: CASP) shares are up 27% this morning. CASP shares rose on the publication of the annual report and the relisting of the shares that resulted. We did suggest this could happen and it's nice to see a speculation like this come off. 

Here's what we said about Caspian: We don't have the detailed numbers as a result of a slightly different problem. That problem at Caspian being: “The Board expects to approve its financial statements for the year ended 31 December 2022 in the first week of July. AIM Rule 19 re-quires that audited ac-counts are pre-pared within six months of the year end. Therefore, in the event they are not signed and published by Monday 3 July 2023 the Company expects trading in its shares would be temporarily suspended from 7.30am on 3 July 2023 until publication.” Well, maybe they'll get the accounts together and maybe they won't - they're suggesting there they won't. 

“This will be something worth monitoring. As with the example of Altyn Gold. Not being able to get the results out on time led to a 20% drop in the share price ahead of the suspension. Given that the suspension was only a week that 20% was regained on requotation. A quick and lovely little speculation. But that did depend upon the Altyn share price already reflecting operational results and the drop being purely about the suspension. That might not be quite true at Caspian Sunrise.” 

Caspian Sunrise shares from London Stock Exchange

As we can see that's what did indeed happen. The annual results are around what we thought they were going to be. The timing of the accounts was indeed simply because more time was needed to add them up. So, upon the relisting the Caspian shares regained most even if not quite all of their lost ground. 

All of which suggests that - as with Altyn Gold mentioned above - we've got a little trading strategy on our hands. When there's a suspension doe to the non-arrival of accounts announced the share price drops - between 20 and 30% in both cases. If we think that it really is just a time problem then perhaps we should think of buying to capture the rebound on relisting.

The difficulty with this is in judging whether it is just a paperwork problem or whether there's some other gremlin lurking in those unannounced accounts. But then no one ever said money was free on stock markets. 

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