ALJ Regional Holdings, Inc. (OTCMKTS:ALJJ) Maintains News-Driven Run
In Friday trading ALJ Regional Holdings, Inc. (OTCMKTS:ALJJ) burst into a flurry of activity after barely trading over the past month. The ticker jumped up immediately after a noon press release and ended the week with a 26% green close, shifting more shares than it had over the last full month.
The trigger for the surge was a press release issued by ALJJ that informed the public the company had acquired Faneuil, Inc. – an entity that appears to have established work relations and contracts in the healthcare, toll and transportation sectors. The acquisition was executed through an exchange of both cash and shares.
The acquisition, which we covered in more depth in another article, appears to be good news for ALJJ shareholders as the company had dropped its revenue-generating subsidiary early this year and was looking for a new course of action, effectively left without a source of income. It has yet to be seen how exactly Faneuil will affect the bottom line of ALJJ as a filing containing the consolidated balance sheet and income statement of the acquired enterprise has not been published yet but strong numbers in that may help ALJJ‘s own share price even more.
To the joy of shareholders, the dramatic run up from Friday did not lead to immediate correction and he ticker managed to climb nearly 10% higher yesterday, on share volume that remained far above the last month’s average. Hopefully, the stock will manage to maintain its new highs without any dramatic pullbacks and volume will remain consistently above the average, which was about a tenth of Friday’s volume spike.
Not all sudden green runners are lucky enough to chart a second green day after a major spike. Nestor, Inc. (OTCMKTS:NEST) crashed 50% after a misunderstanding sent the ticker from $0.001 to $0.11 on Friday.