India Globalization Capital, Inc. (OTCMKTS: IGCC) is soaring in the market today, following up on the strong gains that we saw from the stock Friday. While there has been no news released this morning, there’s a very good reason for the gains. Today, we’ll talk about:
- Why IGCC is soaring;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Here’s Why IGCC Is Soaring
As mentioned above, India Globalization Capital is climbing in the market this morning, but hasn’t released any news. So, what’s the deal?
Well, it all started on Friday, when the stock tripled in value. The gains came after the company said that it successfully challenged the NYSE decision to delist the company over its entrance into the energy drink space.
The official reason that the NYSE provided for delisting IGCC was:
[IGCC] substantially discountinued the business that it conducted at the time it was listed or admitted to trading, and has become engaged in ventures or promotions which have not developed to a commercial stage or the success of which is problematic.
The news of the delisting sent the stock tumbling. However, IGCC challenged the NYSE’s decision. As a result of the challenge, an NYSE panel unanimously voted to set aside the prior decision. As a result, the company is set to be relisted tomorrow, February 26, 2019.
Of course, this is overwhelmingly positive news. The listing on the NYSE provides the company with access to capital as well as other benefits. So, investors or rejoicing, sending the stock screaming for the top.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. When it comes to India Globalization Capital, the news proved to be overwhelmingly positive. After all, the NYSE has agreed that the company is compliant with rules set forth and is in the process of reversing its delisting.
So, it’s not a shocker to see that excited investors are sending the stock on a run for the top. As is just about always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:40), IGCC is trading at $2.78 per share after a gain of $0.87 per share or 45.29% 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 IGCC. In particular, we’re interested in following the story surrounding the company’s continued work to bring various cannabis-related products to market, as well as its efforts with regard to its newly announced foray into the energy drink space. Nonetheless, we’ll keep a close eye on the news and bring it to you as it breaks!
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