With the FTSE opening a little stagnant this week, GKP & CHAR are making gains unseen for a while in the unsettled market – rumour of takeovers and much awaited news brings a flurry of interest to the shares and both anticipate +30% gains in a matter of days.
CHAR.L found a new support point at 25p from 14p now that a big seller has gone and GKP has broken past the 100p into new territory at 130p. With both shares undervalued and worth considerably much more than current market value it appears that the gains have been anticipated for a while.
GKP no longer represents the high risk it was from earlier this year at 10p and a new breed of investor will be attracted to this AIM share with current price above the pound. Many PI’s who jumped aboard the train in March have seen a ten fold return on their original investment, albeit a very risky one at the time.
CHAR could be the next GKP, based on recent activity and surges of buying means that the price will not stick around in the 30’s for a long time. With speculation of at least 50p by November this represents a good value for the short term investor with news due in weeks.