Nova Lifestyle Inc (NASDAQ: NVFY) is screaming for the top in the market this morning, trading on gains of well over 100% in the premarket. However, with no news out, many are wondering why the stock is ticking up.
The gains seem to be the result of day traders jumping on what could become a massive trend. Here’s what’s going on:
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Why NVFY Stock Is Headed Up
As mentioned above, Nova Lifestyle stock is screaming for the top in the market this morning, but with no press releases or SEC filings, many are wondering why the stock is ticking up.
While there is no news, there doesn’t have to be when retail traders jump into a stock in droves, and that seems to be what’s happening today.
All over social media, from StockTwits to Reddit, Twitter, and Yahoo! Finance, we’re seeing messages from day traders talking about the potential here.
In particular, NVFY stock is heading up in a dramatic way, but the public float on the stock is ultra tiny, at just 3.45 million shares. That’s an extremely short supply of shares, and as the law of supply and demand tells us, when demand spikes for a product, in this case a financial product, with little by way of supply, prices must climb.
So, what we’re seeing in the market today seems to be a concerted effort by day traders to increase demand for NVFY shares. With such a tiny float, this effort has the potential to lead to extreme gains.
What Is Nova Lifestyle
Nova Lifestyle is a furniture company. Ultimately, the company makes its money by producing and selling high end furniture. However, the company isn’t a one-trick pony either.
While the core business at the company surrounds furniture, the company is also becoming increasingly active in the healthcare space, with its subsidiary, Nova Healthline.
All in all, the move surrounding NVFY stock this morning is exciting. While there’s no news out there, when the float on a stock is under 4 million shares, it doesn’t take news to get things moving, all that needs to happen is for retail investors to get involved.
That seems to be what’s happening today.
Moreover, considering the ultra-low float on the stock, the gains that we’re seeing at the moment may just be the tip of the iceberg, making NVFY stock one to watch closely.