Typically under-the-radar ToughBuilt (NASDAQ:TBLT) is trending on social media, as the company just issued a crucial press release. Apparently, ToughBuilt plans to launch its products in Ace Hardware stores. Furthermore, TBLT stock might be a short squeeze target. The stock leaped this morning, gaining 25%.
In case you’re not familiar with ToughBuilt, the company is a producer of construction tools and accessories. That’s a tough business to be in during a time of supply chain disruptions and high inflation, no doubt.
Yet, it seems ToughBuilt is built tough. The company is expanding, not contracting. Specifically, ToughBuilt recently entered into an agreement with Ace Hardware USA and International to sell 35 of its products.
Ace is an $8.6 billion hardware giant, so the partnership is a huge win for ToughBuilt. The arrangement will enable its products to be distributed to 5,500 individual Ace stores across the U.S. To quote ToughBuilt CEO Michael Panosian, the deal “signifies another milestone step toward our overall product and sales channel expansion strategy.”
What’s Happening With TBLT Stock?
There might actually be more to this story than meets the eye, though. Sure, the deal with Ace Hardware is crucial to ToughBuilt. Yet, the early-morning 25% jump in TBLT stock was quite extraordinary. Furthermore, the increase in the stock’s daily trading volume has been extreme.
As InvestorPlace contributor Chris MacDonald reported not long ago, the ToughBuilt share price surged 30% in two days. How can we explain this? MacDonald concisely observed, “short squeeze interest around the company appears to be a key driver here.”
Indeed, MacDonald noted the cheap options that are available on TBLT stock, and the stock’s low price. Even today, after its price spike, the shares cost less than $6 apiece.
So, it’s possible there’s more to Wall Street’s sudden interest in ToughBuilt than tool belts and sawhorses. There may be a continuation of a short squeeze afoot, but investors still shouldn’t ignore ToughBuilt’s exciting new development as the company takes its market coverage to the next level.
On the date of publication, David Moadel 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.