It is quite common for stocks to rally strongly despite there being no specific news about the companies in question and on Tuesday it was the VIASPACE Inc (OTCMKTS:VSPC) stock which experienced such a move.
The company has been largely dormant for some years and the last time any news emerged about it was back in June of 2019. However, the stock seemed to come to life out of nowhere yesterday and ended the day with gains of as much as 100%. It goes without saying that such gains under such circumstances are going to make many investors feel that the whole thing was possibly speculative in nature.
In this situation, it might be a good move to take a look at the news from June 2019. At the time the company provided an update with regards to its business operations in the second quarter of 2019.
The company noted that in the second quarter it had signed a contract with the Seoul, South Korea based company named GERMADE Inc. While it was an important announcement, it is highly unlikely that yesterday’s rally was linked to it. Investors could do well to wait for some material news about the company before making a move.