Skypeople Fruit Juice Inc. $SPUI am relatively new to trading and still trying to figure out how all of this works….or at least minimize the damage I have somehow inflicted on myself over the past year. I noticed a stock recently $SPU (Skypeople Fruit Juice) that is a chinese company that sells fruit concentrates. The price of their stock has had some extreme movements as of the past couple of months and today alone rose 51%. I trade on Schwab and I was trying to do my DD and here is what is confusing me.
The company has a market cap of $34M with a little over 4M shares outstanding. Their average volume (10 day) is 1.4M shares and today’s volume was over 10M shares traded. How does this happen and what am I missing? This would mean that each share would have changed hands 2.5 times today alone….right? I will apologize in advance if I am missing something here that is part on Investing 101….but just thought I would ask.
Thanks,
Bill
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That probably means it’s just a volleyball getting tossed back and forth by day traders, who might buy and sell the same stock dozens of times in a day and try to rake off a few cents of profit each time.
I don’t know the company, but sometimes that kind of behavior indicates that these are “promoted” stocks too, by the pump and dump folks who are trying to manipulate shares up so they can sell them or by others, and speculators either get caught up in the fiction of the promotions or try to trade on the crazy waves up and down that are caused by a lot of attention hitting a tiny stock all at one time.