ASX shares are having a fairly pleasant day of trading so far this Tuesday. At the time of writing, the All Ordinaries Index (ASX: XAO) is up a solid 0.32% at around 7,350 points. But the Step One Clothing Ltd (ASX: STP) share price is doing a little better.
Step One shares are today enjoying a whopping gain. The clothing company is presently up an eyecatching 28.57% at 27 cents a share after closing at 21 cents yesterday and opening at 22 cents this morning. And that’s after the company rose as high as 29 cents earlier today – a rise of 35% at the time.
So what’s behind these seemingly enriching gains? Well, things aren’t quite as bright as that headline figure might let on. Yes, Step One is up nearly 30% today. But that only comes after the company crashed a painful 56% or so when it returned to trading yesterday. A week ago, Step One Clothing was a 50 cents per share company. But Step One’s shares were halted from trading on Thursday last week.
Step One share price steps back up
This was to allow the release of a trading update yesterday. As my Fool colleague James covered at the time, Step One informed investors that its expansion into the United Kingdom, United States and women’s products hadn’t exactly been going to plan. Previously, the company had flagged that it expects revenues for FY2022 to grow at between 21% and 25%. Now, it only expects growth of between 15% and 20%.
This announcement seemed to be behind the massive share price crash in Step One shares yesterday. But it appears some investors may have thought things went too far, and have bid Step One shares back higher today. No doubt shareholders will be more than a little relieved. Even so, the clothing company remains down by nearly 82% in 2022 alone, and by 90% over the past year.
At the current Step One share price, this ASX share has a market capitalisation of $88.96 million.
The post The Step One share price rocketed 35% today! Here’s why appeared first on The Motley Fool Australia.
Should you invest $1,000 in Step One Clothing right now?
Before you consider Step One Clothing, 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 Step One Clothing wasn’t one of them.
The online investing service he’s run for over 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 January 13th 2022
More reading
- Why Imugene, Integrated Research, Monash IVF, and Step One shares are sinking
- Why is the Step One share price crashing 54% to a new low?
- 2 ASX growth shares that experts love right now
Motley Fool contributor Sebastian Bowen 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 Scott Phillips.
from The Motley Fool Australia https://ift.tt/hKO6eGX
Stock Pick 