Yangtze River Port and Logistics Ltd (NASDAQ: YRIV) is making its way for the top in the market this morning. However, if you’re looking for press releases or SEC filings, you’re not going to find anything. The company hasn’t offered up any news.
Nonetheless, we believe that we’ve found the reason for the gains. Today, we’ll talk about:
- Why YRIV stock is headed up today;
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Here’s What’s Happening With YRIV
As mentioned above, Yangtze River Port and Logistics is having a strong day in the market today, but the company hasn’t released any news. So, what’s the deal?
News surrounding a court filing that was made in late January seems to be surfacing on message boards surrounding the stock, exciting investors and leading to the gains.
In late January, YRIV filed a defamation suit against Hindenburg Research, Nathan Anderson, ClaritySpring Securities and ClaritySpring. The suit came in response to a short side attack on the stock that led to declines in value as a result of what the company called defamation.
In fact, YRIV said that the suit came “in response to their coordinated and orchestrated market manipulation scheme to disseminate false, misleading and defamatory content to the marketplace regarding the company.”
Moreover, the company said that the content was disseminated for “the purpose of inflicting substantial reputational harm on the company for Defendants’ own financial gain.”
The suit came after Hindenburg Research accused the company of making fraudulent misrepresentations in its public filings with the SEC or intentionally ommitting material information in those filings, laundering money through sham transaction for the benefit of the company’s CEO and being ensnared in a catastrophic liquidity crisis, rending the company worthless.
Since the announcement of the case filed against the Defendants listed above, there has been no update to this case. However, investors are hoping for the best and digging their heels in, sending the stock for the top.
What We’re Seeing From The Stock
While no recent news has been released, Yangste River Port and Logistics is having a great day in the market today. It seems as though investors, hoping for a positive update in this case, are digging into the company and forming their own opinions, rather than following those spread by short sellers.
As is just about always the case, our partenrs at Trade Ideas were the first to alert us to the gains. Currently (10:22), YRIV is trading at $0.68 per share after a gain of $0.031 per share or 4.80% 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 YRIV. In particular, we’re interested in following the company’s recovery from the painful short attack that was waged earlier in the year. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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