nctyThe9 Limited (NASDAQ: NCTY) is flying early on in the pre-market hours this morning, and for good reason. The company is the center of an SEC filing announcing beneficial ownership by an activist investor. Of course, the news led to excitement among investors who are sending the stock on a run for the top. Today, we’ll talk about:
- The activist stake;
- what we’re seeing from NCTY stock as a result; and
- what we’ll be watching for ahead.
NCTY Heads Up On Activist Stake
As mentioned above, The9 is having a great start to the trading session this morning after an SEC filing disclosed an that an activist investor took a large stake in the company. In a recent 13D filing with the SEC, it was announced that activist investor Jie Qin owns 9 million shares of NCTY. That means that the activist currently owns approximatley 7.4% of the company.
Activist investments often lead to big gains in the values of the stocks they are made in. The reason is relatively simple. The goal of an activist investor is ultimately to make money by forcing publicly traded companies to align their interests with those of investors. With Jie Qin making such a large investment in NCTY, we could see big changes in the company ahead.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that it’s important to pay very close attention to the news. After all, the news moves the market. When it comes to The9, the news proved to be overwhelmingly positive. After all, the investment by Jie Qin could lead to positive changes that are in the best interest of investors. So, it comes as no surprise that excited investors are pushing the stock through the roof as we speak. Currently (8:01), NCTY is trading at $6.30 per share after a gain of $4.73 per share or 301.27% 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 NCTY. In particular, we’re interested in following the story surrounding Jie Qin’s investment and the moves he makes to push the company in the right direction. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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