Penny stocks are known for their high risk and high reward factor. No part of the market stands alone quite like this. While the broader markets are getting crushed this week, shares of ATA Inc. (ATAI Stock Chart) are enjoying a cool 31% gain on above-average penny stock trading volume on May 7. But it isn’t just today that is so interesting for this penny stock, it’s the last 30 days.
What Happened With ATAI Stock?
To put this into perspective, just one month ago on April 8, shares of ATA Inc. were trading at roughly $1 per share. What happened next sparked one of the biggest breakouts that this company has seen. When looking at a list of the best penny stocks in the market, ATAI is sure to join the ranks. We covered this earlier this quarter in our article: Top 10 Penny Stocks Making Big Moves – April 9, 2019 Edition
The Beijing company announced non-binding framework agreements and certain related conditional share purchase agreement and deposit agreement with Beijing Huanqiuyimeng Education Consultation Corp (ACG). This also included certain shareholders of Huanqiuyimeng for a proposed acquisition of ACG. So, who is ACG? It is a provider of educational services for students in China who are interested in applying for overseas art study.
ATA will pay a deposit of just under $3 million to some of the major shareholders of Beijing Huanqiuyimeng. ATA has until June 30 to complete this transaction due to factors attributable to ATA. Another case of penny stock news becoming a bullish catalyst.
Consolidation & The Next Move For ATAI
Of course like many things in this niche market, ATAI stock consolidated within a few days of the news. But that wasn’t before shares of this penny stock jump to highs of $4.50. As the dust settled, so did ATAI, reaching a low of $1.61 in May. But once again, some positive penny stock news triggered the next big move for the stock.
The company’s announcement that it will release Q1 financials and host a conference call was enough to reverse the latest downtrend. In total, since early April, shares of ATA Inc. are up by more than 150% as of May 7th highs. And along the way, ATAI stock has seen a breakout of as much as 345%. Will this still be a penny stock to buy later this quarter?