This week the market appears to have gone loopy for anything mentioning Covid-19. It reminds of the Bitcoin bubble, where I bought any company that said Bitcoin or cryptocurrency in its title, without actually reading what the RNS said. Avacta stock rose 100%+ this week due to announcing a point-of-care rapid test collaboration with Cytiva. Other stocks such as NCYT have seen spectacular rises.
We have also seen many companies undertake equity raises this week, taking advantage of a bit of froth in the market. This is exactly how companies should be raising, and not from a position of weakness.
Restaurant Group (RTN) placed an impressive 19.9% of equity at 58p per share. Considering that just a few articles ago the price was around 20p – this is not far off a 200% rise in the price. It puts Restaurant one foot into the survivor’s camp, and significantly decreases the chances of it going under. Not that I’d be rushing into buying. Just because the lockdown ends, will everyone be rushing into Wagamama, pubs, cinemas? Some will, but things aren’t just going to go back to normal.
I ordered my grandparents into quarantine over a month ago now before people had started…
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