KXIN stock is the latest low float runner to light up the NASDAQ. For all those new to trading penny stocks, this is one of the best setups to find and one which we specialize in finding here at Insider Financial. It’s all about finding the low floater bidding higher in the pre-market and then jumping on board. The algorithms and the shorts getting squeezed do all the rest. Just sit back and ride the wave.
As you can see from the chart below, KXIN stock delivered 3 days of gains. On the 14th, 16th, and 19th, KXIN stock opened higher and never looked back. Those that were alert and got in at the open, banked big profits. The key to understanding low floats is that they are short-term plays, good for only a few days. They go up and then come back down.
In this article, we discuss what’s happening with KXIN stock and how we look for low float plays like KXIN for our subscribers.
First up, here’s a little background info for those not familiar with KXIN stock. Kaixin Auto Holdings operates as a used car dealership in the People’s Republic of China. As of December 31, 2019, the company had 14 dealerships.
It also provides financing channels to its customers through its partnership with financial institutions; and value-added services to its customers, including insurance, extended warranties, and after-sales services.
The company was founded in 2015 and is headquartered in Beijing, the People’s Republic of China. Kaixin Auto Holdings is a subsidiary of Renren Inc.
The first thing we do at Insider Financial is looking at what stocks are bidding higher in the pre-market. Then, we look at the size of the float. We are looking for low float plays like KXIN stock. To do so, we check finviz and to see what the float is.
As you can see from above, there are just 1.09 million shares in the float. These are the type of plays day traders and algorithms love.
Unfortunately, there was no news to help drive the share price. The last we heard from KXIN stock was back in August and the news was not favorable. The company said:
Kaixin Auto Holdings (“Kaixin” or the “Company”) (NASDAQ: KXIN) today announced that it had recently initiated legal proceedings against non-controlling shareholders of three of its dealerships due to disputes over operating issues. These three dealerships accounted for a majority of Kaixin’s revenues in 2019.
In addition, the COVID-19 pandemic has a material adverse impact on Kaixin’s used-car dealership business and the Company has experienced a significant loss of revenues.
To resolve these serious challenges to its operations, Kaixin has been reexamining the business model and has decided to put a halt to its used-car dealership business operations. As a result, Kaixin expects that its revenues in the second quarter in 2020 will be significantly lower than the revenues in the prior periods and it may not have meaningful revenues starting from the third quarter of 2020.
One explanation for the excitement in KXIN stock pertains the Chinese electric vehicle market, which a top pick of our’s NIO is a major player in. Our subscribers have been in NIO since it was $6 and we remain bullish on the stock.
KXIN Stock Bottom Line
KXIN stock is just a trade. It’s not a buy-and-hold play. Congratulations to all who caught the move. If you missed the move, don’t worry. There’s always low-float plays to trade, especially on the OTC Markets.
As always, good luck to all (except the shorts)!
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Disclosure: We have no position in NASDAQ:KXIN or any of the securities mentioned. We wrote this article ourselves and it expresses our own opinions. We are not receiving compensation for it. We have no business relationship with any company whose stock is mentioned in this article. Insider Financial is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This article is not a solicitation or recommendation to buy, sell, or hold securities. This article is meant for informational and educational purposes only and does not provide investment advice.