RE: Potentially Transformational RNS - Within Next 14 Days (market)!!12 May 2025 10:56
It's volume that " re-rates " a share price. There are no committees made up of analysts at the MMs who sit periodically to assess whether a micro cap needs to be revalued. Volume means shares changing hand, and it's an indication of the interest in that company at that time if there is plenty of buying volume. A re rate is determined purely by investor supply and demand.
Otherwise, spikes whereby the share price suddenly shoots up and then settles back down to where it started or worse, IMO is simply price manipulation by the MMs, who suddenly hike the share price rapidly in order to create liquidity to sell a load of shares into. We saw that with the 50% rise and then back again in just a couple of days earlier this year.
A genuine rerate requires a lot of extra interest reflected in a lot of extra buying volume which is then sustained over a period of time. Anything else is just price action manipulation.
I am encouraged by the surge in the AIM index since Trump started imposing his tariffs, and generally shaking investor confidence in the stability of the US. It's obvious that there's suddenly a lot more money being put into the junior market. Probably that's money that's been taken out of US shares. So if the company can come up with something exciting in the next few months then hopefully the volume may suddenly surge, and be sustained.