Why did Image Systems rise on 6 October?
Written after the close on
Image Systems +5.76%
Image Systems rose very sharply on a sawmill order. Over the last five trading days the shares rose slightly while the OMX Stockholm 30 was roughly flat, so the gain came mostly in the final session. The likely driver is a small order worth about 1.5 million kronor for RemaSawco, its sawmill automation arm, covering a saw-control system plus a service agreement with a Nordic sawmill, with delivery and installation planned for next year; a rights issue completed in September, which increased the share count, likely kept a lid on the earlier part of the week. Watch whether more orders of this size follow, since the company's annual sales are modest.
Earlier this week
Image Systems fell sharply as its rights issue diluted holders. Image Systems AB, listed on Nasdaq Stockholm, fell clearly over the last five trading days while the OMX Stockholm 30 slipped only slightly, so the decline was steeper than the wider market. The most likely driver is the rights issue — a share sale to existing owners at a discount, which increases the number of shares and spreads earnings over more of them — after the company confirmed the new share count following the offering approved in mid-August. A small sawmill order worth about 1.5 million kronor for the RemaSawco business, due for delivery in 2027, was too small to offset that. Watch whether the extra shares from the issue are absorbed and whether order intake in RemaSawco and Motion Analysis picks up.