Newater Technology Inc (NASDAQ: NEWA) is having an overwhelmingly strong start to the trading session this morning, working its way up after tremendous losses in the value of the stock today. The gains today seem to be a mix of a recovery and the company’s response to recent volatility. Today, we’ll talk about:
- The response to volatility;
- what we’re seeing from NEWA as a result; and
- what we’ll be watching for ahead.
NEWA Heads Up
As mentioned above, Newater Technology is having a strong day in the market today after a dramatic fall in value yesterday. With recent volatility in mind, the company issued a press release to inform investors that it is unaware why the stock would be moving in this way.
In the release, NEWA said that the Company has not selectively disclosed any material nonpublic information to analysts, investors or others without concurrently making a widespread public disclosure. The company also said that the company’s execitives, directors, or any other member of the company have not been involved in the purchase or sale of shares. Also, NEWA said that to its knowledge, none of the controlling shareholders of the company have sold or purchased common shares within the last 30 days.
What We’re Seeing From The Stock
When it comes to NEWA, there are two reasons for the move. First and foremost, yesterday’s declines brought the stock down dramatically. As a result, traders are likely seeing what they view as an opportunity to get in at a discount and enjoy the recovery. Also, investors are likely happy about the fact that the company has no knowledge of sales of shares by management or majority investors. So, it comes as no surprise that the stock is headed up in the market today. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:25), NEWA is trading at $11.60 per share after a gain of $2.34 per share or 25.27% 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 NEWA. In particular, we’re interested in following the stock to see if volatility fades. We’re also watching the company’s operations and digging in to get an understanding for any realistic reason for the recent declines. Nonetheless, we’ll continue to follow the sotry closely and bring the news to you as it breaks!
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