Planet Green Holdings Corp (NYSEAMERICAN: PLAG) is having an overwhelmingly strong start to the trading session this morning, trading in multiples rather than percentages. However, there has been no news released by the company via press release or SEC filing. Nonetheless, we believe that we know why the stock is headed up. Today, we’ll talk about:
- Why PLAG is climbing;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Here’s Why PLAG Is Up
As mentioned above, Planet Green is having an incredibly strong start to the trading session this morning, gaining in multiples with no news released. So, what’s the deal? Even the company is finding a hard time explaining the gains. In a press release this morning, PLAG said that it has been contacted by the NYSE American with regard to the unusual trading activity, but it is unaware of any reason for the gains. Nonetheless, there is a reason and it’s a technical one.
Before the recent dramatic gains, PLAG was trading relatively flat and had quite a bit of short interest. However, with a small spike in value came fear among shorts, leading to a short squeeze. This combined with the low float and flat trading seen before the gains is leading to some massive movement on the stock. All in all, this run seems to be a purely technical move.
What We’re Seeing From The Stock
While the news is usually what moves the market, it’s also important to keep investor excitement in mind. At the end of the day, when a stock like Planet Green trades with a low float and high short interest, all it takes is a slight move upward to excite investors, leading to a short squeeze. That’s exactly what is taking place this morning. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:18), PLAG is trading at $11.51 per share after a gain of $8.84 per share or 331.09% 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 PLAG. In particular, we’re interested in following the trading activity on the stock to see just how high the short squeeze pushes the price. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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