Investors may not be familiar with tiny Nova LifeStyle (NASDAQ:NVFY), but NVFY stock is making huge moves on Thursday morning. Shares are up more than 200% and look ready to keep climbing. So what do you need to know about the company now?
To start, Nova LifeStyle is in the world of home furnishings. It manufactures, markets and sells this furniture for residential clients around the world. Investors should note that this is a tiny company with just 32 employees in Commerce, California.
With that in mind, here is what you need to know about NVFY stock:
- Nova LifeStyle has been around since 2003, although it used to be known as Stevens Resources.
- The company operates through brands Diamond Sofa and Bright Swallow.
- Investors should note that Diamond Sofa has been around since 1992. Nova LifeStyle acquired the California-based brand in 2011.
- According to the company, this acquisition was important because Diamond Sofa sells to the top 100 furniture companies in the U.S.
- Additionally, it says Diamond Sofa appeals to current consumer tastes.
- In general, Nova LifeStyle targets middle and upper middle-income consumers.
- It sells sofas, chairs, dining tables, beds, entertainment consoles, cabinets and cupboards.
- Nova makes these products in the U.S. and in Asia.
- However, the company says these products are marketed and available worldwide through its e-commerce channels.
- Additionally, Nova participates in trade shows and exhibitions to connect with furniture distributors and other retailers.
- One thing to note is that Nova recently expanded into the world of health products.
- In December 2020, Nova LifeStyle launched Nova HealthLine through a partnership with 3H, a South Korean company.
- Its website currently features a smart acupressure bed ($5,500) and a heating belt ($600).
- These products use bio-ceramic stones to retain and distribute heat, based on patents that 3H maintains in South Korea.
What Else to Know About NVFY Stock
So what else should investors know about Nova LifeStyle and NVFY stock?
The first thing to note is that this is a tiny company and quite speculative. Its market capitalization comes in at just $13 million, and shares have had a volatile 2021. This morning, it appears NVFY stock is rocketing higher without any specific news. For investors, this means it is important to do your own research and be sure to understand the risks present.
One other thing to note is that it appears Nova LifeStyle is leaning into its HealthLine offshoot. In January 2021, it announced plans to create a membership-based platform for Nova HealthLine in Malaysia. At the time it said this platform would come with the release of new products, and would be based in Malaysia. Shares dipped that day on higher-than-average volume.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.
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