Matrix clueless to share spike
A relentless rise in the share price of Matrix Composites & Engineering this month has caught the notice of the stock exchange.
Matrix yesterday said it did not have any undisclosed information which could explain the surge from $1.235 at the close on April 30 to an intra-day high of $1.60 yesterday.
The deepwater products maker for the oil and gas industry said it was not aware of any big contracts being awarded for outstanding quotations.
Henderson-based Matrix in its quarterly update released last month had $US183 million in pending contracts which it expected to win in the near term.
"Other than as noted, the company has no explanation as to why there has been an increase in the price of its securities," chief financial officer and company secretary Peter Tazewell said.
The past fortnight's trading has been a continuation of a sustained recovery in the stock since it hit a low of 60¢ last November.
It also follows the May 1 publication of a bullish research note on Matrix by brokerage Hartleys, which gave the stock a 12-month price target of $1.65.
"We are reasonably confident that conversion of pending orders into current orders could be significant," energy analyst Simon Andrew said in the report.
He said Matrix had increased its market share of the global buoyancy market over the past three years, indicating it would win a significant portion of orders associated with new drill ship construction.
Other brokers' price targets range from 90¢ to $1.40. The stock has two buy recommendations and three holds.
