The FFI Holdings Ltd (ASX: FFI) share price is plummeting this week for no apparent reason.
Could the chaos experienced by FFI Holdings’ shares have been driven by a case of mistaken identity?
FFI Holdings – operator of Fresh Food Industries – saw its stock soar 21% on Friday despite the company’s silence. It has since handed its gains back, plunging 17.97% over the course of this week.
At the time of writing, the FFI Holdings share price is $6.94, having fallen 7.9% on Wednesday.
Let’s take a closer look at what might have spurred the food manufacturer and distributor’s recent surge and fall.
Why is the FFI Holdings share price falling?
The FFI Holdings share price has had an unexplainably odd week on the ASX while a barrage of announcements has kept Fortescue Future Industries, often abbreviated to FFI, in the spotlight.
The latter acquired a 60% stake in Dutch-based High yield Energy Technologies (HyET) Group last Thursday. The HyET Group houses HyET Solar and HyET Hydrogen.
It then teamed up with the Queensland Government to announce its plan to double global output of electrolysers on Sunday. Electrolysers are the equipment needed to produce hydrogen from water.
It also partnered with Australian fertiliser supplier Incitec Pivot this week. Fortescue Future Industries will help swap Incitec’s ammonia-production facility’s feedstock from natural gas to renewable hydrogen.
Finally, Fortescue Future Industries’ chair, Andrew ‘Twiggy’ Forrest, stood beside NSW’s Premier Dominic Perrottet and Treasurer and Energy Minister Matt Kean to launch the state’s $3 billion green hydrogen strategy yesterday.
Kean told those present that NSW’s hydrogen industry will be as big as its coal industry by 2050 and Twiggy stated it will “dwarf the scale of iron ore”.
Simultaneous to the barrage of news from Fortescue Future Industries, the FFI Holdings share price has been experiencing turbulence and, not to mention, popularity.
55,702 of the company’s shares were traded on Monday, 19,600 on Tuesday, while another 23,351 swapped hands on Wednesday.
For context, over the last 4 weeks, the average day sees around 6,500 FFI Holdings shares traded.
Whether FFI Holdings’ dramatic movements have been caused by investors mistaking the company for Fortescue Future Industries is impossible to say. Though, it could help to explain the ASX-listed stock’s strange week.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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