A stock rising on the back of no material news is not uncommon at all and hence, investors need to consider each case on its merit. Not all such rallies are a case of speculation. Yesterday, it was the Uranium Participation Corporation (NASDAQ:UPC) stock that came into considerable focus among investors and managed to deliver gains of as much as 44.50%.
However, there was no news about the company that could have brought about such gains. In this situation, it might be worthwhile for investors to look into a development from last week.
Last week the company along with Sprott Asset Management LP announced that after the conditions in relation to the closing had been satisfied, the two companies closed the transaction. It was also pointed out that the closing of the transaction was to become effective on July 19, 2021 at 12.01 a.m.
After the closure of this transaction between the two parties, the freshly minted company Sprott Physical Uranium Trust was slated to start trading on the Toronto Stock Exchange. While it is unlikely that this development had any bearing on the rally in the Uranium Participation Corporation rally yesterday, it is still something that investors need to be aware of.
On Thursday, UPC stock soared 44.53% at $3.83 with more than 12.99 million shares, compared to its average volume of 173k shares. The stock has moved within a range of $2.6000 – 4.1100 after opening the trade at $2.62. Over the past 52-week, the stock has been trading within a range of $2.5200 – 11.9900.