It's been a much-needed happy day for the S&P/ASX 200 Index (ASX: XJO) and most ASX shares so far this Friday. The ASX 200 is presently up by a rosy 0.99% to back over 7,400 points. However, if we look at the Deep Yellow Ltd (ASX: DYL) share price, it seems these gains have not extended to ASX uranium shares.
While the ASX is riding high, Deep Yellow shares are sinking. The uranium producer is currently down a nasty 4.97% to $1.49 a share.
Other ASX uranium shares are suffering too. Boss Energy Ltd (ASX: BOE) is nursing a loss of 2.5%, and Paladin Energy Ltd (ASX: PDN) is down 2.4%.
But Deep Yellow seems to be getting singled out here. So what's going on?
Image source: Getty Images
Why is the Deep Yellow share price tanking on Friday?
To clear this up, there's been no official news or ASX announcements out of Deep Yellow itself today.
However, we still might be able to work out what might be going on.
According to a report in the Australian Financial Review (AFR) this week, ASX broker Bell Potter has recently been attempting to set up meetings between Deep Yellow and investors. However, those meetings were subsequently cancelled by Deep Yellow after it was speculated that they could be preceding a new capital raise program.
The Deep Yellow share price has exploded higher over the past 12 months, rising close to 100%. So it makes sense that Deep Yellow might want to take advantage of this situation with a new capital raising program.
However, the report notes that the explosive runup for Deep Yellow shares has also attracted short-seller interest. As such, a new capital raise, or even rumours of one, could embolden these shorters (capital raises normally result in a drop in share price).
As such, it's possible that this is what is putting a dampener on the Deep Yellow share price this Friday. Considering Deep Yellow's recent share price performance though, it probably won't bother too many investors.
