Market's view on Drax
Published on April 2024
- A Stock watcher noted that the UK is poised to approve funding for Drax’s BECCS plan, which likely influenced the share price activity.
- Another Stock watcher mentioned takeover speculation as a potential factor impacting the stock.
- Market breakouts were described as challenging, with rises being sold into, indicating volatility and potential undervaluation, excluding potential regulatory issues.
- A Stock watcher based an investment decision on technical analysis, observing that Drax seemed oversold and noting Bank of America’s purchasing activity.
- James Lowen from JOHCM asserted that the fall in Drax shares was excessive, highlighting Drax’s strategic importance in UK electricity production and its role in bioenergy with carbon capture and storage (BECCS).
- There was mention of Drax being shorted by 3.4%, including by ShadowFall and Blackrock.
- A Stock watcher pointed out a significant buying activity in Drax shares after a period of selling, suggesting a potential turnaround.
- Concerns were raised about the sudden drop in share price with no immediate news to explain it.