The Kuniko (ASX:KNI) share price is surging 20%. What’s next?

Kuniko shares are on the walk northwards again today.
The post The Kuniko (ASX:KNI) share price is surging 20%. What’s next? appeared first on The Motley Fool Australia. –

The Kuniko Ltd (ASX: KNI) share price has stepped firmly into the green from the opening of trade on Thursday.

Kuniko shares are now changing hands at $1.97 apiece, a 20% jump from the open.

Let’s investigate a little further.

A quick recap on Kuniko

Kuniko is in the business of minerals exploration. It has particular interests in the development of non-lithium battery metals, used in the production of electro-mobility and other modern forms of energy production.

Kuniko was formed via a spinoff from Vulcan Energy Resources Ltd (ASX: VUL) earlier this year. The company completed its initial public offering (IPO) last month.

At the time of writing, Kuniko has a market capitalisation of $87 million.

What’s behind the Kuniko share price lately?

The Kuniko share price has been on a wild ride since listing on the ASX back on 24 August.

Kuniko shares were originally listed at 20 cents apiece, and have since climbed to the current price. Since that time, they have experienced periods of significant volatility.

What does this mean? Well basically, Kuniko shares have fluctuated up and down consistently over the past few weeks. And the fluctuations haven’t been of a small magnitude, either.

On several days across this time, the Kuniko share price has shown an intraday range that resulted in a difference in prices of over 100%, even over 300% on one day.

Even today there has been a 27% spread between the intraday highs and lows of the Kuniko share price.

Equally as interesting, is that some of these fluctuations have occurred on significant trading volume. The average 1 month trading volume on Kuniko shares is an exchange of 11.3 million shares, which is around 27% of the company’s total shares outstanding. That’s exquisitely high for a newly listed company.

One potential explanation for the short-term fluctuations is the appointment of the company’s new CEO, Antony Beckmand.

Beckmand comes with more than 20 years of experience in the mining industry, and is “enthusiastic about (the company’s) portfolio of projects in Norway”.

Kuniko shares have dipped 39% into the red from a closing high of $3.23 since the company announced its new CEO.

What’s next for the Kuniko share price?

There’s been no market sensitive information released by the company over the last week or two.

Nonetheless, current Kuniko shareholders have recognised an 882% return on their initial investment, if they subscribed during the IPO.

Kuniko is also focused on establishing robust ESG principles in its operations, ensuring ethical sourcing of its materials, committing to a zero carbon production process, and operating in Norway, where “98% of electricity comes from renewable sources”.

This may impact the Kuniko share price favourably given the current macro-narrative in corporate social responsibility.

The post The Kuniko (ASX:KNI) share price is surging 20%. What’s next? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Kuniko right now?

Before you consider Kuniko, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Kuniko wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

The Kuniko (ASX:KNI) share price is on a wild ride, sliding 14% today
Kuniko (ASX:KNI) share price soars 15% amid new CEO’s unveiling
What’s going on with the Kuniko (ASX:KNI) share price?
Why Blackmores, Flight Centre, Kuniko, & Qantas shares are soaring today

Why the Kuniko (ASX:KNI) share price is rocketing 96% higher today

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!