Bonso Electronics (NASDAQ:BNSO) stock is rocketing higher on Monday despite a lack of news from the company.
Instead, heavy trading is behind the massive increase in price for BNSO stock. Some 10 million shares are on the move as of this writing. To put that in perspective, the stock’s daily average trading volume is only about 16,000 shares.
Considering that low average trading volume and market capitalization of $40 million, BNSO is a penny stock. That’s despite its value nearly doubling today from Friday’s close of $4.78 per share.
Investors will want to be careful about taking a stake in BNSO stock during today’s rally to the $8 level. It’s now uncommon for retail investors on social media to come together to pump up penny stocks. The low trading volume and market capitalization make it fairly easy for traders to manipulate Bonso Electronics’ stock price.
We’re also seeing plenty of chatter about BNSO stock on social media today. This includes plenty of spam and bot posts. Still, there are some influencers taking note of today’s rise.
If you’re wondering what exactly Bonso Electronics does, you’re probably not alone. Its small size means few are familiar with the business. Essentially, the company focuses on measuring weight. Bonso produces a variety of electronic scales, from ones used by professionals to typical, household models.
As of this writing, BNSO stock is up more than 70% on Monday afternoon.
There’s more recent stock market news for traders to dive into below!
We’ve got all the hottest stock news that investors need to know about for Monday! This includes what short squeeze stocks to watch, an important date for Tesla (NASDAQ:TSLA) stock and what has hydrogen stocks rising. You can get up to speed on all of this news at the following links!
More Monday Stock Market News
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- Why Are Hydrogen Stocks FCEL, BE, GEVO, PLUG Up Today?
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
On the date of publication, William White did not hold (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.