The Rent.com.au Ltd (ASX: RNT) share price is at it again. Rent shares are currently up a whopping 42.31% today to 18 cents a share. That kind of gain is pretty impressive in itself.
If you add the company’s stunning 200% share price bump yesterday, things look pretty good for Rent.com.au shareholders. After today’s rise, Rent’s share price gains just this week amount to more than 330%. That means a $10,000 investment just last week would be worth as much as $33,000 today. Not a bad return for 5 days of waiting!
Today’s Rent.com.au share price represents the highest valuation the company has traded at since June 2016. It gives Rent a market capitalisation of more than $63 million.
So what’s going on here?
Bond, rental bond
Rent.com.au is an online marketplace that seeks to connect renters and landlords. The site is in a similar vein to REA Group Ltd‘s (ASX: REA) realestate.com.au. It allows landlords to list their properties for lease, and gives renters the opportunity to find their ideal property. The company also has various online tools like RentPay and RentQuotes that aim to assist these processes.
To recap, investors got very hot under the collar when the company announced that Australian tech entrepreneur Bevan Slattery had made a $2.75 million investment in Rent.com.au. Mr Slattery received 55 million shares under the agreement, priced at 5 cents apiece.
Perhaps the biggest winner on the ASX this week has indeed been Mr Slattery. Since this investment is now worth more than triple what he laid out. As we discussed yesterday, Mr Slattery has a long track record of investing in early-stage companies. His resume includes names like NextDC Ltd (ASX: NXT) and Megaport Ltd (ASX: MP1).
Why is the Rent.com.au share price rocketing again today?
There have been no major developments for Rent.com.au since yesterday.
That essentially means we can assume that investors might have noticed what went on with Rent shares yesterday, and are piling on to get a slice of the action.
As we saw with GameStop Corp (NYSE: GME) shares last week, and the short-lived ‘silver squeeze’ this week, the current market conditions are certainly encouraging many investors to chase the chance of a quick return.
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Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO and REA Group Limited. 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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