LYL 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, LYL stock delivered 3 days of gains. On the 15th, 19th, and 20th, KXIN stock opened green 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 LYL stock and how we look for low float plays like LYL for our subscribers.
First up, here’s a little background info for those not familiar with LYL stock. Dragon Victory International Limited operates a reward-based crowdfunding platform in the People’s Republic of China. The company operates through four segments: Crowdfunding Platform Service, Incubation Services, Finder’s Fees Services, and Auto-Parts Procurement Services.
It operates 5etou, an online crowdfunding platform at 5etou.cn that enables project searching for funding to connect with funding sources.
The company also provides business incubation services related to marketing, sales and strategic planning, and guidance and general resources in ancillary services, such as human resources, legal, accounting, operations, assisting with feasibility studies, and other types of services.
In addition, it offers a finder’s service to assist companies to obtain loans or additional equity financing, introduce them to potential business partners, find merger candidates or other strategic relationships, or assist with feasibility studies.
Further, the company offers procurement services to auto-repair shops that have demands for auto-parts from auto-parts suppliers and transacting with auto-parts shops.
Dragon Victory International Limited was founded in 2015 and is headquartered in Hangzhou, the People’s Republic of China.
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 LYL stock. To do so, we check finviz and to see what the float is.
As you can see from above, there are just 5.7 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 LYL stock was back in June when the company announced that it had regained NASDAQ Minimum Bid Price requirements. The company reported:
Dragon Victory International Limited (Nasdaq: LYL or the “Company”), a company that offers reward-based crowdfunding opportunities and quality incubation services to entrepreneurs in China announced today that it has received notification from the Listing Qualifications Department of The Nasdaq Stock Market (“Nasdaq”) that it has regained compliance with Nasdaq Listing Rule 5550(a)(2), which concerns minimum bid price listing requirements. As previously announced, Dragon Victory International Limited had been notified by Nasdaq that its common stock failed to maintain a minimum bid price of $1.00 over 30 consecutive business days as required by the Listing Rules of The Nasdaq Stock Market.
On June 24, 2020, Nasdaq provided confirmation to the Company that for the last 10 consecutive business days, from June 10, 2020, to June 23, 2020, the closing bid price of the Company’s common stock has been at $1.00 per share or greater. Accordingly, the Company has regained compliance with Listing Rule 5550(a)(2) and this matter is now closed.
Just like KXIN the other day, LYL 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)!
WHEN INSIDER FINANCIAL HAS A STOCK TIP, IT CAN PAY TO LISTEN. AFTER ALL, OUR FREE NEWSLETTER HAS FOUND MANY TRIPLE-DIGIT WINNERS FOR OUR SUBSCRIBERS. WE SPECIALIZE IN FINDING MOMENTUM BEFORE IT HAPPENS!
Disclosure: We have no position in NASDAQ:LYL 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.