The FFI Holdings (ASX:FFI) share price has lost 18% this week. Could this be a case of mistaken identity?

A stockmarket chart on a red background with an arrow going down, indicating falling share price

The FFI Holdings Ltd (ASX: FFI) share price is plummeting this week for no apparent reason.

Interestingly, the same week has been full of news of another FFI. That is, the unlisted, hydrogen-focused, green energy leg of Fortescue Metals Group Limited (ASX: FMG), Fortescue Future Industries.

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.

The post The FFI Holdings (ASX:FFI) share price has lost 18% this week. Could this be a case of mistaken identity? appeared first on The Motley Fool Australia.

Should you invest $1,000 in FFI Holdings right now?

Before you consider FFI Holdings, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and FFI Holdings wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

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.

from The Motley Fool Australia https://ift.tt/3v8mzXB

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s