Insights

Why is the Hot Chili (ASX:HCH) share price losing its spice lately?

There’s been a big change with the copper developer’s share price.
The post Why is the Hot Chili (ASX:HCH) share price losing its spice lately? appeared first on The Motley Fool Australia. –

You might have noticed that the Hot Chili Ltd (ASX: HCH) share price was burning hot last week — or was it?

Market watchers saw the copper developer’s share price seemingly surge a massive 4,455.5% last Friday. It increased from 4.5 cents to $2.05 in a single session. But that was just an illusion.

The company recently completed a large share consolidation, decreasing the number of shares it has outstanding at a ratio of 50:1, rounded up to the nearest full number. Thus, the value of each share increased about 50 times over.

However, the last 2 sessions have seen the company’s stock in the red.

At the time of writing, the Hot Chili share price is back to $2.02, having fallen 4.6% yesterday and another 1.46% today. This is despite no news being released by the company.

For context, the S&P/ASX 200 Index (ASX: XJO) dropped 0.6% yesterday and is flat at the time of writing today. Meanwhile, the All Ordinaries Index (ASX: XAO) fell 0.7% yesterday and is currently sporting a 0.13% dip.

What’s going on with the Hot Chili share price?

Hot Chili reduced its outstanding shares ahead of its plan to list on the Canadian venture stock exchange (TSXV).

By having fewer shares outstanding, the company states it has a more effective capital structure and appropriate share price ahead of its dual listing.

At the end of the consolidation, the company had about 87.5 million outstanding shares, down from approximately 4.4 billion.

As a result, the Hot Chili share price is far higher than it was a fortnight ago. Though, the company’s market capitalisation remains relatively unchanged at 176.85 million.

In October, Hot Chili said it was on track to debut on the Canadian exchange before the end of 2021. Its new share price puts it in a similar position as its TSXV-listed peers.

However, the company hasn’t released any word to explain its stock’s recent tumble. In fact, the last time the market heard price sensitive news from Hot Chili was 1 November when it provided an update on its activities over the September quarter.

Right now, the Hot Chili share price – adjusted after the consolidation – has fallen 3.8% year to date. It has also dropped 14% over the past 30 days.

The post Why is the Hot Chili (ASX:HCH) share price losing its spice lately? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Hot Chili right now?

Before you consider Hot Chili, 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 Hot Chili 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

Close The Loop (ASX:CLG) share price rockets 55% on IPO

Sezzle (ASX:SZL) share price fizzles 5% despite upbeat growth figures

Why Afterpay, Liontown, Northern Star, and Xero shares are falling

The Endeavour (ASX:EDV) share price slides 7% in 4 weeks. What’s going on?

Here’s why the Creso Pharma (ASX:CPH) share price is surging 6% today

Motley Fool contributor Brooke Cooper has no position 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!