Shares in semiconductor development company 4DS Memory Ltd (ASX: 4DS) opened the session poorly and are now trading 9% down at 9.1 cents apiece at the time of writing.
Investors are driving down the 4DS Memory share price whilst at the same time 4DS responds to an ASX price query regarding the upward movement of its shares in recent times.
For example, over the past 5 days of trading, the 4DS Memory share price has surged by 60%.
Here are the details of this curious situation.
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Why is 4DS plunging today?
The ASX wrote to 4DS yesterday requesting a 'please explain' on the substantial jump in its share price over the past week.
Specifically, the ASX compliance department asked for clarification on "the change in the price of 4DS's securities from $0.065 on 24 December 2021 to an intra-day high of $0.105 at the time of writing today".
This was alongside the "significant increase in the volume of 4DS's securities traded from 29 December 2021 to 30 December 2021".
In response to the ASX query, 4DS Memory said it is not aware of any information concerning it, that has not been announced, that could directly explain recent trading patterns.
The company also confirmed that it is in compliance with all of the ASX listing rules. 4DS Memory said it is not aware of any other explanation regarding the increased share price.
The letter also concerned the volume of 4DS Memory shares traded, which has shot up tremendously. Even today, the volume of 4DS shares exchanging hands is 157% of its 4-week average.
Again, the company stated it is unaware of any reason behind this thickly-traded volume over the past 3 days.
Regardless, investors are pulling out in the final session of the year today, sending the shares south at a rapid pace.
4DS Memory share price summary
In the past 12 months, the 4DS Memory share price has fallen by 29%.
But over the shorter term, the share price has exploded by 84% over the past month.
