The selection by Polish Nuclear Power Plants of six Polish companies to supply components for the construction of a nuclear reactor caused quite a stir on the WSE. Investors significantly raised the price of Feerum, which deals with grain silos, although the message concerned Ferrum, a manufacturer of steel pipes used in the energy sector, which is no longer listed on the WSE.
On Tuesday, Prime Minister Donald Tusk announced that the Polish Nuclear Power Plants (PEJ), the investor in the nuclear project in the Choczewo commune, has selected six Polish companies to supply components for the construction of a nuclear reactor.
Together with the American Westinghouse, which is the general contractor, the Ferrum Spalled Structures Plant, Famak SA, Energomontaż-Północ Gdynia, Mostostal Siedlce, Mostostal Kraków and Mostostal Kielce also began quality certification for construction requirements.
Investors among them can see a connection between several companies and entities listed on the Warsaw Stock Exchange. These are Mostostal Kielce controlled by the listed Mostostal Warszawa and Mostostal Kraków, which is part of the Budimex Group from WIG20. In turn, Mostostal Siedlce is linked by capital to the Polimex Group. Until recently, Ferrum (ticker FER) was also present on the stock exchange, whose subsidiary is ZKS Ferrum. Famak could be associated with Famur (currently Grenevia) a few years ago, and Energomontaż-Północ was on the Warsaw Stock Exchange until 2010.
The next step in the process of implementing the nuclear project is not only a chance for a lucrative contract and gaining unique experience, but also the prestige associated with the construction of the first Polish nuclear power plant. Prime Minister Tusk reminded that PLN 60 billion from the budget for the construction of the nuclear power plant will go to Polish companies. It is no wonder that investors are reporting demand for shares of the above-mentioned companies, as long as they know what they are buying.
The Mostostal Warszawa share price gained about 15% after the Prime Minister's announcement. The Polimex chart also showed a reaction, but a rather small one, and after a while the increases exceeded only 1%. The information was even less of a concern for investors in the construction industry leader, Budimex, whose share price fluctuated around the reference point.
What caught the eye was the price of Feerum (ticker FEE) , a company valued at around PLN 110 million, which deals comprehensively with the production, delivery and assembly of grain elevators. Shares of the company with a name very similar to Ferrum (which has not been on the WSE since January 9th) rose on Tuesday by as much as 17% to over PLN 12.50 per share.
It seems that those looking for a quick profit did not pay attention to the fact that it was not a company chosen by PEJ. Feerum shares were quoted at a level above PLN 12.50 for about 30 minutes, after which there was a dynamic withdrawal. However, it took a while to realize the situation. With an over double-digit increase in the price, about 7.88 thousand shares were traded with an estimated value of almost PLN 100 thousand. For several speculators, this was certainly a costly mistake. At the end of the day, the price gained less than 1.4 percent, with the entire daily turnover amounting to PLN 242.68 thousand.
This is not the first interesting situation related to the announcement of selected companies that have a chance to win a contract for the construction of the first Polish nuclear power plant. A little over a year ago, when Westinghouse announced the selection of seven Polish suppliers to support the construction of the power plant and other European projects, investors first rushed to buy the shares, then still listed in the proper Ferrum company, and then sold the shares at the races when its management clarified that there was no agreement yet to support the construction of the first nuclear power plant in Poland, and moreover, there were not even legally binding obligations to establish potential cooperation with Westinghouse, as more about in the article “From American to ours. The company's announcement interrupted the crazy rally of the share price”.
