NaturalShrimp Stock (OTCMKTS:SHMP) bounce back from one-year lows continues to gather steam. NaturalShrimp stock has a history of explosive moves. Patient investors were rewarded this week when NaturalShrimp stock jumped 100%..
The only reason to trade penny stocks is for the explosive moves they can make. If a penny stock doesn’t have triple-digit or 10-bagger potential, there’s no reason to really be owning them. We at Insider Financial understand this and we spend our time hunting for penny stocks that can make big moves. NaturalShrimp stock has a history of making big moves and why we’ve covered the stock so much.
NaturalShrimp Stock Price Analysis
The rally has come at the backdrop of the company confirming it has inked a new capital injection deal with its investment partner GHS LLP. The new deal could not have come at a better time as the company is reeling from the shutdown of operation in Texas after fire destroyed its LaCoste pilot plant.
A bounce back from one-year lows has coincided with an uptick in investors’ sentiments in the overall stock market. Market indexes have rallied from one-year lows on easing of lockdown restrictions imposed to curb the spread of the coronavirus. NaturalShrimp has outperformed the overall stock market over the past month and now appears to be trading in a steep uptrend.
A spike to the $0.06 level means NaturalShrimp stock is closing in on the $0.08 resistance level. A rally followed by a close above the $0.08 level should affirm the emerging uptrend, setting the stage for NaturalShrimp stock to make a run for 2020 highs.
Failure to break out through the resistance level could leave the stock susceptible to further drops in continuation of the long term downtrend. The immediate support on any pullback is at the $0.05 level, below which the stock could drop to one-year lows.
What Does NaturalShrimp Stock Do?
NaturalShrimp is an aqua-tech company specializing in the development of commercially viable systems for growing shrimp in enclosed saltwater systems. The company uses patented technology to produce fresh naturally growth shrimp without the use of antibiotics or toxic chemicals.
Balance Sheet Boost
NaturalShrimp is edging higher in the market on the confirmation that its investment partner, GHS LLP, has agreed to complete a $5 million Securities Purchase Agreement reached last year. The investor has $2.25 million outstanding of the initial $5 million Series B stock purchase agreement.
In addition, the NaturalShrimp balance sheet is poised to receive a significant boost from an $11 Million Equity Financing Agreement filed in October last year. Likewise, the funding does not exclude funding from joint venture relationships going forward.
LaCoste Pilot Plant Fire
The financing wave comes hot on the heels of NaturalShrimp suffering a major blow in March after its LaCoste pilot Plant was gutted down by the fire. The fire happened as the company was restocking 1.5 million PLs.
Management has shrugged off the effects of the fire reiterating it did not in any way destroy the company’s valuable technology for producing fresh and natural shrimp. In addition, the company remains well-positioned to take advantage of the tremendous business opportunity despite the delays created by the fire
The company is pursuing an insurance settlement process as it looks to get everything back on schedule.
“This process may or may not include rebuilding a full production facility on our LaCoste, Texas property. We are completing a financially sound business model, whereby we are reviewing all options, including leasing existing regional production warehouses or any existing seafood facility that could be quickly adapted to our technology processes and procedures,” NaturalShrimp in a statement.
Even as the company moves to get back on track on the production of NaturalShrimp, the COVID0-19 pandemic is the biggest tailwind that could take a toll on operations going forward. NaturalShrimp has had to balance its goals as part of its core business while maintaining the health and safety of its employees.
The future looks bring NaturalShrimp stock awaiting insurance compensation following the gutting down of its Texas pilot plant. Amidst the recent setbacks, the company’s subsidiary initiatives continue to do exceedingly well amidst the challenging environment triggered by the COVID-19 pandemic.
NaturalShrimp stock looks set to continue powering higher from all-time lows as underlying fundamentals continue to improve. With the stock currently trading at a great discount relative to its tremendous potential backed by a huge business opportunity, higher highs in the market look likely going forward.
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Disclosure: We have no position in NaturalShrimp stock and have not been compensated for this article.