When a stock rallies by a certain degree then it is almost inevitable that a correction takes place due to some investors deciding to take some of their profits. Such a thing happened with the International Consolidated Companies Inc (OTCMKTS:INCC) stock on Monday as a case of profit taking from investors resulted in an 8% decline in the stock.
In this situation, it might be a good idea for investors to take a look at why the stock actually went up in the first place. Last week the company had announced that it completed the acquisition of SoundTech AI Inc and that had been the main trigger behind the strong rally in the stock.
As per the announcement from International Consolidated Companies on July 22, it completed the acquisition, worth as much as $150 million, in exchange for preferred X stock. The acquisition is a major one for the company and it is not really a surprise that investors moved on to the stock in a big way last week.
It now remains to be seen if the International Consolidated Companies stock can actually recover through the rest of the week. After all, the drop in the stock price might actually prove to be an opportunity for some investors.
On Monday, INCC stock fell 8% at $0.0034 with more than 400.11 million shares, compared to its average volume of 187.62 million shares. The stock has moved within a range of $0.0028 – 0.0038 after opening the trade at $0.0037. Over the past 52-week, the stock has been trading within a range of $0.0000 – 0.0088.