ASX stock of the day: Aquis Entertainment (ASX:AQS) explodes 48% higher

The Aquis Entertainment Ltd (ASX:AQS) share price is exploding (again) today, up almost 50%. What on earth is going on with this company?

| More on:
a young woman raises her arm in celebration against a backdrop of brightly coloured fireworks in the sky.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Aquis Entertainment Ltd (ASX: AQS) share price has exploded today, up 48.89% at the time of writing to 34 cents a share. Aquis shares closed at 23 cents each yesterday, but opened at 24 cents this morning before rocketing as high as 49 cents (up 65%) just after open.

Today's move caps off what has been a wild ride for Aquis over 2021 so far. Aquis is a company that, until 2021, had been drifting in relative obscurity for years. Between mid-2015 and the end of last year, the company had slowly lost around 80% of its value. Last year, Aquis even touched the depressingly low share price of less than half a cent.

But 2021 has seen a dramatic reversal of fortune for this company. After starting the year at 4 cents a share, Aquis rocketed by almost 2,000% between 16 and 25 February, when it reached a new all-time high of 82 cents a share. The difference between this company's 52-week low and 52-week high is an astonishing 27,233% The share price has subsequently slid from those highs, but remains well above where it was just two months ago.

So what is going on with Aquis?

Who is Aquis Entertainment?

Aquis is a gaming company (meaning gambling and casinos, not Monopoly) whose flagship asset is Casino Canberra, the only licensed casino in the Australian Capital Territory. Beyond this, the company also states that it is "actively looking to grow its Australian operations". Casino Canberra offers everything you would expect from a casino, including entertainment, bars and restaurants, accommodation and (naturally) gambling facilities.

Aquis also has a $307 million redevelopment proposal for Casino Canberra in its pipeline. This would expand the casino with luxury six-star villas, international-standard VIP offerings, more bars and nightclubs, and even a luxury shopping mall.

What's been causing the Aquis share price volatility?

This is one of the strangest movements that has occurred on the ASX this year so far, I'd wager. There is nothing that can be fully verified to have caused this massive re-valuation of Aquis Entertainment. Between 29 January and 18 February, the company delivered one announcement to the markets. That was a quarterly report on 29 January. Aquis' next announcement was a pause on trading on 18 February after an ASX query into the massive price movements that occurred in the days prior.

In response to this ASX 'speeding ticket', Aquis only had this to say: "The Company is not aware of any information concerning it that has not been announced to market and which could be an explanation for the recent trading in the Company's securities".

Even more mystifying is that these moves keep happening with no obvious catalyst. Just look at today. Aquis shares are up almost 50%. Yet the last major announcement from the company was 2 weeks ago (some financial statements). Looking at ASX trading volume data, we can see that today brought a massive surge in trades. Yesterday, approximately 453,000 Aquis Entertainment shares swapped hands. Today, the number is 2.9 million (and we're still a couple of hours away from market close).

Whatever is going on here, it remains a mystery. But if you love ASX drama, make sure to keep watching this company! At the current Aquis share price, the company has a rough market capitalisation of $62 million.

Motley Fool contributor Sebastian Bowen 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.

More on Share Market News

Two smiling work colleagues discuss an investment or business plan at their office.
Broker Notes

Which beaten down ASX 200 share did Goldman Sachs just upgrade to a buy rating?

The broker has become more bullish on this stock following last week's update.

Read more »

Hand holding Australian dollar (AUD) bills, symbolising ex dividend day. Passive income.
Best Shares

The best ASX shares to invest $1,000 in right now

Analysts think that putting your money into these stocks could be a smart move.

Read more »

green etf represented by letters E,T and F sitting on green grass
Share Market News

4 ASX ETFs to buy for FY25 and beyond

Could these ETFs be top options for investors looking for long term picks?

Read more »

A smiling woman sips coffee at a cafe ready to learn about ASX investing concepts.

How I'd invest $10,000 in ASX shares right now

I’m bullish about the prospects of these stocks.

Read more »

A fortune teller looks into a crystal ball in an office surrounded by business people.
Share Market News

What's the outlook for shares vs. property in FY25?

Generally speaking, there is optimism among the experts for both shares and property in FY25.

Read more »

Happy shareholders clap and smile as they listen to a company earnings report.
Best Shares

Top ASX shares to buy before earnings season

It's almost time to take a look at the books!

Read more »

sad party goer sitting alone after celebration
Share Market News

Here are the top 10 ASX 200 shares today

The ASX 200 had a horrible end to its trading week this Friday.

Read more »

A young female investor sits in her home office looking at her ipad and smiling as she sees the QBE share price rising
Broker Notes

3 ASX shares brokers tip for significant outperformance in FY 2025

Leading brokers expect some significant outperformance from these three ASX shares.

Read more »