LON:KEYS | Keystone Law (KEYS) - Any Ideas Why The Share Price Is Nose Diving?

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9th Mar '22 by Phil Kirk

2 comments 398 reads

Dear Stockopedia Community,

I'm a relatively inexperienced investor so please excuse me if this is a dumb question.

Keystone's share price has dropped quickly recently despite pretty positive regular reviews in the Investors Chronicle (sorry Paul and Jack but you rarely cover them on Stockopedia!). I can't work out why. They do have some proportionately large institutional investors and James Knight (founder) has 28% but I can't see any significant drops in their holdings.

I've looked more deeply into the numbers, reviews, news updates but can't find a plausible reason.

Does anyone have any ideas why there share is dropping so quickly?

Thanks for your help.

Phil

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About the Author

Phil Kirk

Premium Member

2 comments

googlyeyes

10th Mar '22

Phil Kirk - unfortunately there doesn't have to be a reason (news etc), news often only drives an individual share price when it is unexpected and is often short-lived (its often "buy the rumour, sell the fact") and prices are really only driven by supply & demand (if there is more sellers than buyers, the price goes down, more buyers than sellers prices go up)...

This is a thinly traded share (illiquid, low volume), with a wide spread on the AIM market so it will not take much volume to move the share price a lot... also, if you open the chart and overlay the AIM performance you can see that it has followed the downtrend of the index to a degree (red line on below chart is AIM all share index overlaid on price chart for KEYS).

The stock also has an 'expensive' rating (see Stockopedia value rank) and of late, higher valued growth stocks have taken a beating across the board.

Phil Kirk

10th Mar '22

Thank you, that's very helpful. I've had more time on my hands lately to learn more about analysing shares and your comments are another lesson learnt about what to look out for. Regards, Phil

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Keystone Law (KEYS) - Any ideas why the share price is nose diving?

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About the Author

Phil Kirk

2 comments

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