Why Is Asia Broadband (AABB) Stock Up 35% Today?


  • Asia Broadband (AABB) has rallied 30% in today’s session.
  • This rally comes as the G7 announces its move to ban imports of Russian gold.
  • Additionally, investors appear to like the company’s announced dividend plan.
AABB stock - Why Is Asia Broadband (AABB) Stock Up 35% Today?

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A popular penny stock favorite of retail investors, Asia Broadband (OTCMKTS:AABB) is seeing signs of life today. At the time of writing, AABB stock has surged more than 30% higher, fueled by some rather interesting catalysts for this gold-related company.

Notably, gold-related stocks are mostly-moving higher on news that G7 nations are looking at banning imports of Russian gold. Less supply on the global market could mean higher future prices, driving interest among stocks tied to this commodity.

Asia Broadband’s business model has shifted to focus on the production and sale of gold to Asian markets. Additionally, AABB has a gold-backed crypto: the AABB Gold Token (AABBG-USD) that the company launched in March of last year. This relatively new crypto (it is unlisted on most major exchanges) has also been moving in response to this move. Should other countries look to buy gold-backed assets to avoid sanctions, perhaps crypto is the way to go. At least, that’s how investors appear to be viewing this news today.

Let’s dive more into what’s behind this impressive move in Asia Broadband.

Can AABB Stock Continue to Rally?

Most retail-driven stocks and cryptocurrencies have seen their fair share of pain of late. Indeed, for AABB stock, this hasn’t been a very positive year. Just a week ago, this company was trading right near its 52-week low.

However, as we’ve seen in the past with previous surges, all it takes is one catalyst. Today, investors have a rather juicy one to jump on. Accordingly, perhaps this move isn’t one that should surprise many investors, particularly given this stock’s $0.08 price.

Additionally, the company’s previously-announced set of two shareholder stock dividends is something investors are pricing in right now. Perhaps there’s some value to be had to being patient with a stock like this. Indeed, we’ve seen how impatient the market is right now.

That said, this is a high-risk, high potential upside bet which appears to be more of a trading vehicle than an investment right now. Accordingly, investors should take appropriate risk management precautions before considering such a stock in this bear market environment.

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Read More:Penny Stocks — How to Profit Without Getting Scammed

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2022/06/why-is-asia-broadband-aabb-stock-up-35-today/.

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