Nuzee (NASDAQ:NUZE) stock is up on Wednesday with heavy pre-market trading of the coffee and tea company’s shares this morning.
That has more than 4 million shares of NUZE stock on the move as of this writing. This is already above its daily average trading volume of about 3 million shares. It’s also worth noting that the company’s float is roughly 406,140 units.
This movement comes without any clear news from Nuzee. The single-serve coffee company hasn’t released any press releases or filings that would cause this morning’s rally. There’s also no analyst coverage that would act as a catalyst for today’s movement.
Instead, traders will keep in mind that NUZE is a penny stock. That comes from its prior closing price of $3.70 per share and a market capitalization of just $16.385 million.
How This Affects NUZE Stock
Being a penny stock opens Nuzee up to certain vulnerabilities. That includes volatility alongside the strong trading of its shares.
This could be a sign of manipulation by retail or day traders. If that’s the case, it makes NUZE stock a risky investment this morning, as the pump likely won’t last long before the dump. It could also be a sign of speculative traders buying its shares.
NUZE stock is up 64.3% as of Wednesday morning.
There are more stock market stories traders will want to read about below!
We have all of the hottest stock market news ready to go on Wednesday! Among that is what has shares of Primech (NASDAQ:PMEC) stock up, the biggest pre-market stock movers this morning and more. All of this info is ready to go at the links below!
More Wednesday Stock Market News
- Why Is Primech (PMEC) Stock Up 60% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Wednesday
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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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
