Although it is true that AAP Inc (OTCMKTS:AAPJ) was trading within a range on Monday, it ought to be noted that the company did make a major announcement yesterday.
Market Action
On Monday, AAPJ stock ended flat at $0.0320 with 5K share, compared to its average volume of 1.6k shares. The stock moved within a range of $0.0320 – 0.0320 after opening trade at $0.0320.
Major Details
The company announced that it had mutually agreed with ExcelRev to terminate the agreement they had in place with regards to the operation of a business that had debt delinquency. It was noted that over the course of the past month, AAP had been busy working through due diligence and negotiations with regards to the possibility of a new acquisition. Until the whole thing is completed, AAP stated that it was going to continue to be focussed on its current holdings in the company Red Tail Corporation.
Red Tail is a construction company that is privately owned. As per the agreement that is already in place with Red Tail, AAP has the option of completing a 100% acquisition of Red Tail. In 2022, the valuation of the working projects at Red Tail is going to be more than $15 million. The company had been founded back in 2016 and is currently looking to expand aggressively. In order to facilitate that expansion, Red Tail is going to need a partner.
Key Quote
Paul Bakajin, CEO, stated: “I am very excited to be moving forward and evaluating the many opportunities that are coming our way and I am hopeful for the future. The change that has happened with the debt collection business gives us an opportunity to concentrate on better opportunities that I believe will make our shareholders very happy, but until that time comes, we are very dedicated to maximizing the potential of Red Tail. More updates and news to follow very soon.”
Traders Note
AAPJ stock is trading above the 20-Day and 50-Day Moving averages of $0.0287 and $0.0295 respectively. Moreover, the stock is trading is the neutral zone with RSI stands at 66.
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