Three stocks with sharp moves

Metrofile, Libstar and Orion showed how catalysts can spark JSE price surges

- THE FINANCE GHOST

There are many different types of share price catalysts. Some are obvious, such as earnings announcements or a major transaction.

Others are more subtle, including geopolitical events or a significant macroeconomic change. But it takes something really substantial to cause double-digit share price moves in a single day.

There were a few such examples on the JSE recently that are worth looking at in more detail.

Metrofile shareholders have had to be patient. The group has been struggling to find much in the way of growth, with punters hanging on in the hopes of a deal coming through. That day has now come, with Mango Holding Corp (yes, that’s the actual name of the buyer) putting through an offer of R3.25 a share to shareholders.

It’s not as tasty as the acquirer’s name may suggest because Metrofile traded at just more than R3 for ages during the pandemic. Those who bought earlier this year are smiling, though, as the 52-week low on the stock is R1.17.