Aceto Corporation (NASDAQ: ACET) is flying in the market today with gains that are better explained in multiples than percentages. However, if you’re digging for news, you’re not going to find any that’s less than a week old. So, what’s happening? Today, we’ll talk about:
- Why ACT stock is climbing;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
ACET Is Rocketing
As mentioned above, Aceto is climbing in the market today. However, if you go digging for news, you’re not going to find anything new. In fact, the most recent story took place about a week ago.
In a press release ACET said that it received approval to tap into bankruptcy funds. The secured financing package is worth a total of $60 million. $15 million is already available to the company.
The company also said that the interim approval of the financing also includes a roll up of $23 million in revolving loans that lenders have provided the company in January.
Since the announcement of bankruptcy, ACET has been tumbling. In fact, just yesterday, the stock fell to a record low. This seems to be playing a role in the gains that we’re seeing today.
With vast and high-speed declines recently, the stock quickly fell to the floor. With the market being an ever moving wave of constant overreactions, some believe that the value of the stock fell too low. However, most that are playing this move are traders that are taking advantage of a bounce as technical data after the declines says that the stock is undervalued.
What We’re Seeing From The Stock
While Aceto hasn’t released any news, the bankrupt generic drug company is climbing. With technical traders at the helm, the stock is making an incredible bounce.
As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:31), ACET is trading at $0.29 per share after a gain of $0.15 per share or 104.97% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ACET. In particular, we’re interested in following the story surrounding the company’s continued work to break through the bankruptcy. We’re also interested in seeing how high this technical bounce pushes the stock. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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