Why the IDT Australia (ASX:IDT) share price is up 150% in just 2 days

The IDT Australia Limited (ASX:IDT) share price was on fire again on Monday and stretched its two-day return to a staggering 150%…

| More on:
asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

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 IDT Australia Limited (ASX: IDT) share price was on fire again on Monday.

The pharmaceutical manufacturing company's shares were up as much as 67% to a multi-year high of 47.5 cents at one stage.

When the IDT Australia share price hit that level, it meant it was up 150% in the space of just two trading sessions.

The company's shares eventually ended the day with a gain of 52.5% to 43.5 cents.

Why is the IDT Australia share price up 150% in two trading sessions?

Investors have been scrambling to buy IDT Australia's shares following the release of a positive yet brief announcement at the end of last week.

That announcement revealed that the Australian Government's Department of Health has been in touch with the company in respect to support in manufacturing COVID-19 vaccines.

According to the release, IDT Australia is now undertaking a feasibility assessment to assess the possibility of utilising its sterile manufacturing facility to supplement the production capability for a COVID-19 vaccine.

What next?

At this stage, no further details have been released. However, the company intends to provide the market with updates as and when additional information comes to hand.

Though, given its experienced team of specialists and world class facilities, the company appears well-positioned to help with the vaccine manufacturing.

But because of the unknowns, investing at this stage is very high risk. After all, nobody knows just how much revenue would be generated should the company be given a contract.

IDT Australia isn't the only company that investors have been buying shares of for this reason.

The Probiotec Limited (ASX: PBP) share price has also risen strongly over the last two trading sessions.

Probiotec is a leading manufacturer, marketer, and distributor of a diverse range of prescription and over-the-counter pharmaceuticals, complementary medicines, and specialty ingredients. Investors may believe it could be called into action as well.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Probiotec Limited. 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 Gainers

Man drawing an upward line on a bar graph symbolising a rising share price.
Share Gainers

Why Core Lithium, Life360, Syrah, and Xero shares are jumping today

These ASX shares are ending the week on a high. But why?

Read more »

Smiling elderly couple looking at their superannuation account, symbolising retirement.
Share Gainers

These were the best performing ASX 200 shares in February

These shares were making their shareholders smile last month.

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Share Gainers

Why Harvey Norman, Macquarie Technology, Ramsay Health Care, and Star are rising

These ASX shares are having a strong day. But why?

Read more »

A man looking at his laptop and thinking.
Share Gainers

Should I buy Nvidia stock as an Australian investor?

Many Aussies are thinking of jumping on the bandwagon, but they need to think about these issues first.

Read more »

A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her
Share Gainers

Here are the top 10 ASX 200 shares today

It was a rough day for ASX 200 investors this Wednesday.

Read more »

A woman's hair is blown back and her face is in shock at this big news.
Share Gainers

Why APM, DroneShield, EOS, and NextDC shares are charging higher

These ASX shares are having a strong session on Wednesday. But why?

Read more »

A happy businessman pointing up, inidicating a rise in share price
Materials Shares

Why are ASX lithium shares like Liontown having such a bumper session today?

Lithium shares are defying the broader market on Wednesday.

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

This ASX All Ords stock just surged 88% in less than 3 days! Any guesses?

The ASX All Ords stock is drawing intense buying interest from investors this week.

Read more »