VK shares are rocket again. What should investors do?
Quotations of IT companies are again among the growth leaders today: at 14:45 they added 19.4%. And since the beginning of the month VK shares have risen by almost 50%.
Why did the price of the securities rise?
Alpha Investments analyst Daria Fedorova points out that the explosive growth of the quotes is similar to a short squeeze: when the price rises rapidly due to the massive closing of short positions.
Investors had reasons to bet on the fall of the stock: the company was subject to restrictions, the debt burden was high and there were also infrastructure risks. At the end of September, the shares traded at a historic low of 109 rubles.
On October 28, a good report for the third quarter was published, but the stocks hardly reacted. During the day, the securities rose by only 1.6%. The report cannot be considered as a reason for a further increase in the shares.
Buying VK shares in anticipation of further growth seems too risky, the analyst believes. The rise seems speculative; There are now no fundamental reasons for revaluation of shares.
Are you attending the VK rally?
- There is already a good profit.
- I'm waiting for me to close the old minus.
- I like more predictable papers.