Planet Green Holdings Corp (NYSEAMERICAN: PLAG) is having an incredibly strong start to the trading session this morning after a volatile trading day yesterday. While the company has released no news nor SEC filings, we believe that we know the reason for the gains. Today, we’ll talk about:
- Why PLAG is headed up;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why PLAG Is Headed Up Today
The volatile ride started on October 17, 2018 for Planet Green and its investors. Before the 17th, the stock was trading relatively flat with a low float and high short interest. However, on the 17th, the company announced that it closed a financial transaction that would drive about $10 million into the company, putting it on strong financial footing.
The news of the closed transaction excited investors and led to a short squeeze that led into early trading hours yesterday. In fact, in the pre-market yesterday, the stock was up more than 300%. However, after PLAG issued a press release saying that it does not know of any reason for the volatile trading on the stock, it fell into the red.
Nonetheless, investors seem to be picking up the slack today. The gains in PLAG seem to have quite a bit to do with the stock closing deep in the red yesterday, bringing the stock down to support. From there, traders saw a technical opportunity and have been pushing the stock up since.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Planet Green, while there was no news released today, the news released on October 17th seems to have led to the volatility that is causing the stock to run for the top in the market today. Nonetheless, as is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:02), PLAG is trading at $6.02 per share after a gain of $1.80 per share or 42.65% 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 particualr, we’re interested in following the story surrounding the stock’s continued volatility as well as how the company uses the $10 million or so to improve operations and lead to growth for investors. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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