JMU Ltd- ADR (NASDAQ: JMU) is gaining in multiples this morning. However, the gains are leaving many scratching their heads. The most recent news released by the company was two months ago and was negative news about NASDAQ compliance.
Nonetheless, there’s a good reason for the gains. Today, we’ll talk about:
- Why JMU stock is running for the top;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Here’s What’s Going On With JMU Stock
As mentioned above, JMU stock is making a run for the top in the market this morning. However, there was no good news. The most recent news from the company was that it received a notice of noncompliance from the NASDAQ two months ago.
Nonetheless, if the company can hold onto today’s gains, this issue will be behind it. After all, the stock is now trading well above the $1.00 per share minimum bid price requirement.
The reason for today’s gains actually has little to do with the company itself and more to do with macroeconomic news. Over the weekend, the United States and China made incredible progress in the negotiations associted with the trade war, and that’s great news for JMU.
If all goes well, we will see lifted sanctions from both the United States on China and China on the United States. This will open the door to more trade between the two largest economies in the world, offering the opportunity to bulster economic conditions on both sides of the ocean.
The news isn’t only sending JMU Ltd up. If you look across the companies that do business in China or are headquartered in the region, chances are that you’re going to see quite a few stocks making big runs for the top.
At the end of the day, if the trade war has led to several questions about the stability of the Chinese economy. Should the issue come to an end and sanctions be lifted, the Chinese economy would be given the tools it needs to grow, improving conditions for companies across the region.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to JMU Ltd., the news proved to be overwhelmingly positive.
Sure there was no company-specific news released. However, macroeconomic news could open the door to strong growth ahead for the company. So, it’s not surprising to see that excited investors are pushing the stock for the top.
As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (11:24), JMU is trading at $2.12 per share after a gain of $1.17 per share or 123.66% 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 JMU. In particular, we’re interested in following the story surrounding the company’s work to take advantage of the changing economic times in China. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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