Golden Heaven (NASDAQ:GDHG) stock is taking off on Wednesday alongside heavy pre-market trading of the Chinese amusement park company’s shares this morning.
This has more than 36.9 million shares of the stock changing hands as of this writing. That’s a massive surge in trading volume compared to the company’s daily average of about 2.4 million units.
Investors will note that this rally comes without any clear news from the company. That includes a lack of press releases or filings with the Securities and Exchange Commission (SEC). There’s also no analyst coverage that would send the stock higher today.
One thing to keep in mind is that GDHG is a penny stock. This comes from its prior closing price of 18 cents and its market capitalization of only about $9.212 million.
What That Means for GDHG Stock
Penny stocks are often volatile as the low entry point makes them easy to manipulate. It also bears mentioning that Golden Heaven’s float is only 1.73 million shares. This could be a sign that retail and day traders are pumping up the shares.
If that’s the case, investors might dump GDHG stock for profits soon, leaving some unlucky traders holding the bag.
GDHG stock is up 62% as of Wednesday morning.
Investors looking for more of the most recent stock market stories are in luck!
We have all of the hottest stock market news that traders need to know about on Wednesday! Among that is what has shares of Sify Technologies Limited – Rights (NASDAQ:SIFYR) up, the biggest pre-market stock movers this morning and more. All of this info is ready to go at the links below!
More Stock Market News for Wednesday
- Why Is Sify Technologies Limited – Rights (SIFYR) Stock Moving Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday
- Dear FFIE Stock Fans, Mark Your Calendars for June 12
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.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, William White 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.
